Embedding Circular Economy in the Construction Sector Policy Framework: Experiences from EU, U.S., and Japan for Better Future Cities

The transition towards a Circular Economy (CE) in the construction sector is essential to achieving sustainable, inclusive smart cities. This study examines the integration of CE principles into construction policies across four key global contexts: the European Union (focusing on Italy and Germany), the United States, and Japan. Through a comparative policy analysis, the research identifies best practices, implementation barriers, and the role of digitalization in advancing CE strategies. In Europe, CE is embedded in policy frameworks such as the Green Deal and the New Circular Economy Action Plan, driving the shift toward sustainable urban development. The United States, while in the early stages of CE adoption, is fostering circular initiatives at local levels, particularly in waste management and building deconstruction. Japan’s policy landscape integrates CE within a broader strategy for resource efficiency, emphasizing technological innovation. The findings highlight the necessity of a research-driven approach to inform policies that leverage digital tools, such as Building Information Modeling and Digital Product Passports, to enhance material traceability and urban circularity. This study contributes to the global effort of designing smart cities that are not only technologically advanced but also environmentally and socially sustainable through the adoption of CE principles in the built environment.