Around 95% of the products being used to reconstruct the settled surface of the Thirlestane Road in the city will come from recovered sources, with this job alone set to save thousands of tonnes of C02 emissions.
On the back of this, Edinburgh City Council (ECC) is to ask its executive to approve plans for a joint venture company so that the system can be used more widely.
If agreed, the local authority will work in partnership with Abertay University, which will provide the research, development and testing in a £250,000 laboratory funded by the Department of Trade and Industry.
The same sum will be provided by industry stakeholders including Proficio Technology, which will offer specialist expertise in the development, especially with regard to performance based road design and construction using recycled materials.
ECC executive member for environment and streetscape councillor Bob Cairns said: Cutting the amount of waste being sent to landfill and reducing the harmful emissions produced by roadworks obviously benefits the environment.
This practice is also good value for money, as the council will not have to buy as much maintenance and will also pay less landfill tax.
While the move will comply with the climate change framework recently signed by the council, it is hoped that the findings of the partnership between Abertay University and Proficio will eventually lead to take-up by other authorities across the UK.
Cairns added: This also highlights the need to look at how we can reduce harmful impacts on the environment in every aspect of our lives.
In order to fully utilise this process on Edinburghs roads, it is vital that we set up this partnership to move things forward.