Circularity in the Built Environment: Unlocking Opportunities in Retrofits

The report argues that the global retrofit market must grow to $3.9 trillion by 2050 to meet IEA net-zero targets, requiring nearly 40 billion tonnes of materials. It finds that 50% of materials removed during these retrofits could be recirculated, potentially diverting $600 billion from landfills and reducing CO2e emissions by 500 million metric tonnes annually by 2050. The document identifies Europe as the most mature region in circular retrofit adoption and suggests that materials and parts manufacturers, as well as upgraders and renovators, are best positioned to capture the most value in a circular value chain.

• To meet International Energy Agency (IEA) net-zero targets, the global retrofit market must expand from $500 billion currently to approximately $2.9 trillion by 2030 and $3.9 trillion by 2050.
• Between 2023 and 2050, global retrofits will require nearly 40 billion tonnes of materials, with glass, steel, concrete, aluminium, brick, and plastic being the most demanded by weight.
• Approximately 50% of materials extracted during retrofits from 2023 to 2050 could be recirculated, which would divert materials valued at $600 billion from landfills and reduce annual CO2e emissions by 500 million metric tonnes by 2050.
• The Asia-Pacific region is expected to have the highest material demand for retrofits, requiring approximately 25 billion tonnes between 2023 and 2050.
• Europe is currently the most advanced region in implementing circular retrofits due to its specialized training, advanced take-back programmes, and mature circular design principles.
• In a circular retrofit value chain, upgraders and renovators (30-45%) and materials and parts manufacturers (up to 35%) are projected to capture the largest shares of the value pool.
• The economic viability of circular retrofits depends on reducing the costs of reuse and recycling while maintaining high landfill costs and utilizing regulatory incentives like tax exemptions and carbon-pricing schemes.

APA

World Economic Forum (2025). Circularity in the Built Environment: Unlocking Opportunities in Retrofits. https://reports.weforum.org/docs/WEF_Circularity_in_the_Built_Environment_2024.pdf

Chicago

World Economic Forum. Circularity in the Built Environment: Unlocking Opportunities in Retrofits. 2025. https://reports.weforum.org/docs/WEF_Circularity_in_the_Built_Environment_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Circularity in the Built Environment: Unlocking Opportunities in Retrofits |date=January 2025 |url=https://reports.weforum.org/docs/WEF_Circularity_in_the_Built_Environment_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025circularity, author = {{World Economic Forum}}, title = {{Circularity in the Built Environment: Unlocking Opportunities in Retrofits}}, institution = {World Economic Forum}, year = {2025}, month = jan, url = {https://reports.weforum.org/docs/WEF_Circularity_in_the_Built_Environment_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }