One of the numerous objectives of the European CBCI project is to develop a circular biobased wall element. As part of the design process, the first prototypes are analysed using life cycle assessment (LCA) and compared to a more traditional wood-skeleton element. The results indicate that the prototypes have a significantly higher impact than the reference solution, mainly because of the specific selection of biobased finishing materials. Also, considering an in-use service life of 60 years, the use of metal connectors to enable dismantling and reuse of the structure is not justifiable from an environmental perspective as their impact is about as high as the structure itself. In conclusion, the case study illustrates how LCA allows to evaluate the environmental relevance of specific circular building solutions and can be used to identify optimization strategies.