Circular cities 101: how do they work?

Posted on: 1 April, 2025

Applying the circular methodology to our urban planning and infrastructure could be an effective way to reduce the built environment’s contribution to the climate crisis.

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Despite accounting for less than 2% of the Earth’s surface, cities consume some 78% of the world’s energy. On top of that, they’re a leading cause of waste and pollution of both the air and water.

The built environment accounts for 40% of global greenhouse gas emissions. In urban settings, these figures are even more concerning, as this negative impact of the built environment on the climate and natural resources increases proportionally with urbanisation and population growth.

As these figures become more readily available and climate change continues to be a key social, political and economic issue, more must be done for the future of our planet. One growing solution is circular cities, but how exactly do they work?

What is a circular city?

A circular city is one that aims to move away from linear planning and practises and instead create an interconnected network of systems and principles across an urban area.

These systems and principles are designed to reduce and eventually eliminate waste and pollution by reusing, repurposing and recirculating products wherever possible. By its nature, a circular city will promote more sustainable methodologies, reducing the amount of disposable items and demolition coming from within.

How does a circular city work?

A circular city works by moving away from the linear economy and business model we have become accustomed to – a model of ‘take, make, waste’. Instead, the circular city model sees the value and longevity of infrastructure, products, materials and more, maintaining everything we create for as long as possible – hence the term circular.

Learn more: 5 circular business models (and how they can give you a competitive advantage)

The idea of the circular city is that everything operates in a closed loop, repeatedly reusing, repurposing or recycling materials instead of allowing them to become waste. Resource extraction is also minimised under this model. To achieve this, residents, government and local businesses must work together to create goods, services and infrastructure that are durable, adaptable and easier to maintain. There’s also an emphasis on using locally sourced goods and allowing nature to flourish wherever possible.

When done right, circular cities allow the local economy and environment to thrive, creating a more vibrant, sustainable and resilient way of life for residents and visitors alike.

Why circular cities are important

As circular cities connect people, the economy and business models, they can have a tremendous economic, social and environmental impact.

Circular cities can help improve air quality, reduce pollution and eliminate waste, making these places far more livable for residents, enhancing social interactions and improving environmental sustainability.

Not only are these cities better for the planet, but the circular model is important for economic productivity. For example, by eliminating waste, we can reduce costs associated with waste management. The model also supports new growth and business opportunities, giving locals the chance to develop new circular economy strategies, hone their skills and create more job opportunities.

8 examples of circular cities

Several major cities around the globe are already embracing this model.

1. Amsterdam, Netherlands

Perhaps one of the most famous circular cities is Amsterdam. The capital city was one of the pioneers of this economic model in Europe, launching its Circular Amsterdam programme back in 2015.

The programme focuses on four key areas for development including biomass and food, construction, consumer goods and plastics. As part of these strategies, the city has introduced community networks, innovation labs, fashion projects, plastic-free campaigns and more.

2. Glasgow, United Kingdom

Glasgow is another European city working to tackle the throwaway culture of today and to do so, introduced an initiative called Circular Glasgow.

This initiative is open to all businesses and is a network that allows members to share their ideas and thoughts on generating a circular economy. They can also discuss how this model will support their business growth, help the city to reach climate targets and highlight the benefits to both businesses and the local area.

3. Singapore, Singapore

The city-state of Singapore has been encouraging a circular economy for decades now, due to being one of the most densely populated but resource-scarce countries in the world.

Because of its location, the city has focused on water self-sufficiency through desalination, water reuse and rainwater collection. They also prioritise waste management, working hard to convert the city’s waste into energy. As a result, they have achieved one of the highest recycling rates in the world, and they aren’t stopping there. Through this circular model, the city hopes to reduce waste sent to landfill by 30% by 2030.

4. Copenhagen, Denmark

In 2019, Copenhagen got on board publishing its Circular Copenhagen strategy. The initiative aims to make the European city carbon-neutral by 2025 and fully circular by 2035.

To do this, they are focusing on urban planning and designs that are easy to disassemble and recycle. They are also introducing green procurement and sharing platforms, for example, bike sharing schemes, a circular construction hub and a textile recycling facility.

5. Seattle, USA

Over in North America, the city of Seattle has been working to transition towards circularity since the 1980s. As the home of many of the world’s biggest technology companies, Seattle is famous for its commitment to circular development, with building owners expected to report on their emissions by 2027 and meet emissions targets every five years from 2031 onward. Being a coastal city, it has also incorporated a wide range of measures to improve its resilience from the impacts of climate change.

6. Zurich, Switzerland

Zurich is another European city that has undergone a circular transition in recent years. In fact, in 2022, 89% of voters agreed to a referendum that called for the government to create “a framework for considerate treatment of resources, materials and goods, as well as the closing of material loops.”

The Swiss city came out fifth in the latest Bloomberg and Holcim Circular City Barometer – a ranking system powered by algorithms that measure how quickly cities are transitioning to a circular economy – and was placed first in the category of circular living.

7. Sao Paulo, Brazil

Sao Paulo is one of the world’s largest cities, making it an ideal place to test circular economy strategies and theories. It’s home to the Urban Futurability project, where a virtual digital twin has been used to simulate the impact of circular development and thinking.

Learn more: What are digital twins (and how do they work)?

As a city that produces 100,000 tonnes of organic waste every year, the city’s award-winning “Connect the dots” initiative has been set up to combat social inequality and encourage regenerative farming.

8. London, United Kingdom

The capital of the United Kingdom topped Holcim and Bloomberg Media’s second edition of the Circular Cities Barometer in 2023 – a position it is held ever since – and is considered a leading example of how to facilitate a city level circular transition.

London aims to become a fully circular city by 2040, with circularity playing a key role in achieving its net zero ambitions and decarbonisation goals.

The benefits of the circular city model

There are lots of reasons to adopt a regenerative circular approach:

• Reducing greenhouse gas emissions and air pollution to help the planet and create a more liveable environment
• To combat throw-away culture by reducing waste and using resources more efficiently
• Reducing environmental impact by reusing, repurposing and recycling as much as possible
• Enhancing the security and resilience of resources and infrastructure
• Cutting costs and generating new revenue streams for local businesses, as well as creating new business and job opportunities
• Improving the overall health and wellbeing of residents
• Fostering social inclusion and getting the local community involved
• Enabling long-term socio-economic, cultural, technological and environmental change in these busy urban areas

Final thoughts

With almost two-thirds of people estimated to be living in urban areas by 2050, protecting the environment, natural resources and our own wellbeing needs to be a top priority. Circular cities are one way to achieve this, reduce waste, combat climate change and create a happier planet.

The circular city model must connect social, economic and environmental factors through developments in infrastructure, manufacturing, fashion, transport, food and more. Now is the time to act and local authorities should take advantage of these opportunities to create a better and more sustainable city that supports the planet and its people.

Urban planning is an exciting field that has a pivotal role in the design and function of our cities and communities. If you want to have a part in helping the built environment realise a sustainable future, UCEM’s MSc Urban Planning will give you the knowledge, skills and technical understanding you need.

Find out more: MSc Urban Planning – University College of Estate Management