What works for circular design in the built environment?

Last updated: 22 September 2025
Share
Prepared by: Department of Energy, Environment and Climate Action
Prepared for: Businesses, non-for-profit organisations, government agencies, and researchers
First published: June 2025

Description

The built environment includes all human-made surroundings people use to live, work, and play. It encompasses buildings and parks, and their supporting infrastructure such as transport, water, and energy networks. While the built environment benefits human wellbeing, it places considerable pressure on the natural environment. According to Victoria's waste projection model, 6.7 million tonnes of construction and demolition waste was generated in Victoria in 2022–23. The cost of managing this waste is significant, with the construction industry spending around $2 billion on waste services in Australia each year. These costs are rising and are expected to rise further as landfill space becomes scarcer.

With one of the fastest growing populations in Australia, Victoria needs to accelerate construction, while also introducing circular practices to improve material efficiency, lower waste and reduce associated emissions.

Given the inefficiency of wasting valuable materials, and the cost of managing waste generated by the building and construction sector, there are economic gains on the table for businesses that embed circular economy principles.

With this in mind, the Victorian Government’s Circular Economy Business Innovation Centre investigated the potential of circular design within the built environment, including strategies, benefits and successful applications.

The What works for circular design in the built environment report showcases insights and case studies and demonstrates how businesses stand to gain from effective circular design while delivering economic and environmental outcomes for Victoria.

The report focuses on five key circular design principles, with additional guidance on developing the investment case for circular design, including highlighting the triple bottom line (economic, social, and sustainable) advantages to business. The report concludes with outlining key actions that can be taken across supply chains to mainstream circular design in the built environment.

Read the full report