Circular economy (CE) as a new model of economic development promotes the maximum reuse/recycling of materials, goods and components in order to decrease waste generation to the largest possible extent. It aims to innovate the entire chain of production, consumption, distribution and recovery of materials and energy according to a cradle to cradle vision.

An overview of climate change mitigation opportunities in the world's buildings is presented, based on the key building-specific findings of the Fourth Assessment Report from the Intergovernmental Panel of Climate Change. Buildings and the building stock can play a major role in mitigating climate change in the short- to medium-term, since substantial reductions in CO2 emissions from their energy use can be achieved over the coming years.

This study presents three cost-optimal calculations. The overall aim is to provide a deeper analysis and to provide additional guidance on how to properly implement the cost-optimality methodology in Member States. Without proper guidance and lessons from exemplary case studies using realistic input data (reflecting the likely future development), there is a risk that the cost-optimal methodology may be implemented at suboptimal levels.