This study is part of the Nordic Networks for Circular Construction (NNCC) project. It builds on the report Nordic Networks for Circular Construction WP3: Metrics for Circularity, which resulted in a list of potential indicators. Most of these indicators will be collected at the macro level. However, strategic criteria should be enforced locally as part of the public procurement process to realise the indicators. The overall objective of this study is to support the inclusion of circular construction criteria in public procurement. The study answers the question: How are the recommended indicators being implemented as part of public procurement for construction projects at the municipal level?
The study has been conducted using a combination of desk research and interviews. For each Nordic country, a municipality that has demonstrated leadership in circular construction has been invited to participate in the study. Semi-structured interviews have been carried out with representatives from the property and, in some cases, the public procurement of the municipalities of Bergen (NO), Copenhagen (DK), Gothenburg (SE), Helsinki (FI), and Reykjavik (IS).
Each municipality has strategies that guide the direction of municipal construction projects towards circular approaches and reducing their carbon footprint. For example, they include:
Climate and environment/circular economy strategies, which are the key drivers for municipal circular construction.
The use of certification schemes for large projects, and in the case of Bergen, the use of the national initiative FutureBuilt, which has many of the same characteristics as a certification scheme.
Development projects to test methods for circular construction, e.g. to develop public procurement criteria and to support reuse and recycling.
Use of quality points in public procurement to factor in circularity.
National cooperation between urban municipalities is needed to exchange experiences on sustainable and circular construction.
All eight indicators comprised by this study are relevant across municipalities, although to varying extents. They are generally in line with ambitious local strategies for sustainable and circular construction and climate targets defined at national and local levels. The following highlights the indicators and main conclusions from the study according to their relevance for municipal construction projects' planning and construction phases.
1.1 Indicators of relevance for the planning phase
1.1.1 The utilisation rate of the existing building stock
The utilisation rate of existing building stock can help identify building types available for conversion between functions. Different metrics related to the utilisation data are relevant at different levels of decision-making. At the municipal level, the utilisation rate of the existing building stock is relevant in the construction planning phase. For example, renovation or repurposing of existing (empty) building stock can be considered instead of constructing new buildings.
The indicator is relevant for all municipalities from an economic perspective. It is also relevant because of their strategic focus on preserving existing buildings through renovation instead of demolition and new construction. Some municipalities have methods to maintain an overview of municipally owned property. However, none of the municipalities have a complete overview of the utilisation when identifying buildings/sites to meet the municipalities’ need for buildings.
1.1.2 Total renovations vs. demolition and new buildings
Preserving the existing building stock is one of the focal points of the Nordic countries' national sustainability and waste reduction strategies. The metric is closely linked to the utilisation rate of buildings. However, it further specifies the decisions made at the local level concerning renovation vs. demolition.
In many cases, demolishing and building new is more expensive than renovation. However, in addition to price, a strategic shift has occurred to factor in environmental sustainability and carbon footprint when deciding whether to renovate. The municipalities also consider the project's time, the building's state, and the functions needed for the building in each case.
1.1.3 Potentials for Nordic cooperation
There is a general interest in developing methods to monitor the utilisation rate locally and using it to discuss the potential for renovating existing buildings to meet the municipalities' needs. The exchange of good practices between municipalities and/or the development at the Nordic level of methods to support monitoring the utilisation rate are examples of initiatives to support this development.
In Finland, a national Green Deal Strategy to be launched in the autumn of 2024 comprises an indicator for the local utilisation rate. This initiative can serve as a point of departure for Nordic cooperation in introducing the utilisation rate of the existing building stock as a common Nordic indicator.
1.2 Indicators of relevance for the construction phase
1.2.1 Number of certified building projects
This indicator focuses on the number of buildings, including existing and new buildings, that have successfully obtained a building certificate with circular properties. The indicator is a proxy for the more ambitious part of the construction industry because the requirements for achieving certification schemes are higher than the minimum EU and national legal requirements. Municipalities can require the use of a certification scheme through public procurement.
Four of the five municipalities comprised by this study use certification schemes strategically. The schemes are used as a tool for municipalities to demonstrate leadership and push the development of the construction industry towards more sustainable and circular construction. They provide the municipality's safety that construction projects follow regulations and meet high standards. The study has demonstrated that certification systems influence the implementation of the remaining indicators.
1.2.2 Share of EPDs with circular properties
Environmental Product Declarations (EPDs) provide a standard way of declaring the impacts from manufacturing to usage through Life Cycle Assessment (LCA). To be used for circular construction, the indicator shall monitor the share of EPDs with circular properties compared to the total number of EPDs. It must include product-group benchmarks for what is considered circular building products. Municipalities can set requirements to include EPDs (with circular properties) in public procurement.
It is a challenging indicator to use to assess the circularity of products. Today, it is primarily used by the construction industry and municipalities as an indicator of carbon footprint. Except for two municipalities requiring EPDs for all construction projects to conduct LCA analysis at the building level, EPDs are mainly used as part of certified construction projects.
1.2.3 Number of EU Taxonomy-aligned buildings
The EU Taxonomy introduces a classification system to determine which activities and investments are environmentally sustainable. When reporting on the EU Taxonomy, companies must disclose whether their activities are eligible or aligned with environmental objectives. If an activity is taxonomy-aligned, it means it qualifies as environmentally sustainable. Municipalities are not obliged to report on the EU Taxonomy; however, both companies and investors in the construction sector are.
For most municipalities in the study, compliance with the Taxonomy is not yet a priority, except for one municipality that has started to develop reporting procedures. However, the remaining municipalities address the issue through the projects that are being certified as the schemes continually incorporate new regulations, including the EU Taxonomy, into their frameworks.
1.2.4 Construction and demolition waste
Waste statistics have been used for a long time in the construction sector and are relatively easily accessible.
Despite the degree of regulation and the focus on waste management as part of certification schemes, most municipalities highlight challenges to monitor and ensure that construction and demolition waste is managed correctly on site.
1.2.5 Recycling rates
It is mandatory to report the amount of waste received at the different treatment plants and shipped further in the waste treatment system. The waste-data system often only tracks waste materials for recycling, while materials for reuse are not tracked and documented. In the context of municipal construction projects, requirements for reused materials and recycled materials are relevant.
Municipalities are testing ways to increase reuse and recycling, e.g., through development projects where municipal construction projects are used to test methods. This involves developing requirements for specific materials to preserve for recycling in connection with demolition and supporting mechanisms to secure the supply of reused construction materials.
1.2.6 Carbon footprint in the construction sector.
Recent and current reforms of Nordic building acts are introducing new carbon limits for the carbon footprint. The new limit values and their dependency on LCA tools are expected to improve data collection. The EU Energy Performance of Buildings Directive (EPBD) was revised and formally adopted in early 2024. According to this Directive, calculating the GWP (Global Warming Potential), which is used to calculate LCAs, will be required for new buildings by 2028.
Municipalities have experienced challenges in developing/using a method that ensures that LCA calculations for buildings are harmonised across construction projects. For most municipalities today, LCAs are mainly carried out for large construction projects as part of their certification. However, work is underway to develop methods for LCA calculations at the level of buildings across the municipalities for all projects.