2. Key findings
Achieving a circular construction model requires a holistic and multidimensional approach. It is not merely a matter of increasing recycling rates or adopting specific technologies; it demands a fundamental rethinking of the entire construction value chain, addressing systemic challenges, enabling accurate progress monitoring, fostering cultural shifts, and empowering local stakeholders.
The Nordic Networks for Circular Construction project has generated a wealth of insights and actionable knowledge to guide the transition towards circular construction practices across the Nordic region. Through its multifaceted work packages, the project has comprehensively examined the current state, barriers, opportunities, and pathways for embedding circularity within the Nordic construction sector.
2.1. Barriers and opportunities
A report by the Swedish National Board of Housing (Boverket) and WSP Sweden “Nordic Network for Circular Construction: Analysis of barriers and possibilities” presents a landscape study of the state of the art in the circular construction in the Nordics and highlights the main barriers and opportunities.
2.1.1. Current state of circular construction practices
The current state of circular construction in the Nordic countries is marked by a nascent but growing momentum towards integrating circular economy principles into the construction sector. Circular construction is being progressively seen not just as a waste management initiative but as a comprehensive approach encompassing the redesign, operation, and reuse of building materials and structures. Despite these advances, the practice is still heavily oriented towards recycling rather than higher-value reuse or reduction strategies.
2.1.2. Major barriers and opportunities to advancing circularity
Despite these recent advancements in the regulatory framework for circular construction, there are still significant barriers facing actors along the construction value chain. Be they developers and building owners, or architects, engineers and consultants, contractors and builders, product manufacturers and demolition companies and recyclers, they all face a range of different technical, regulatory, cultural, and economic barriers that hinder progress and block transformative actions. These can be found within the strategic planning process, within building regulations themselves, in the culture that pervades the industry and the broader society, economic framework conditions for the sector, the mechanisms by which markets can form and blossom, the logistics associated with reuse and recycling, the knowledge and experience within the industry at all steps in the value chain, the complexity of allocating (legal) responsibility outside of normal industry practice, documenting and data provision for reused products and buildings, and sharing that data beyond traditional silos within the industry.
A main takeaway from the analysis of these barriers is that they are heavily interlinked. For example, lack of experience and knowledge within the sector stems from a lack of opportunity to gain that experience and knowledge, while that same lack of experience and knowledge means that it is difficult to commission projects with a circular focus. Lack of experience and knowledge also leads to longer project time frames and therefore higher expenses.
The study included interviews, a literature review and a survey targeted for relevant actors within circular construction primarily in the Nordic countries. The following table presents the most pressing barriers as identified along with the challenges of integrating circular construction into strategy and planning processes. It pairs these challenges with forward-looking opportunities.
1 Actors throughout the value chain do not have sufficient knowledge of or experience with the methods, processes, or routines required for circular construction, many of which do not yet exist. | Enable new actors to enter the circular construction market under favourable conditions, build experience, and develop and test new methods for all phases of circular construction. Provide a meeting place for interested actors to expand their network and learn new competencies. Provide central hubs that collect, collate, and communicate knowledge, experience, and best practices on circular construction. Provide standardised learning within the sector, both through tertiary education and training, as well as apprenticeship training and education. Collect Nordic case studies of tangible and successful examples of circular construction done well, detailing not only the final product, but also the processes involved, and the challenges overcome, the solutions developed, and a contact reference for each of the responsible actors. Drive the propagation of knowledge about circular construction in the industry through projects for public works. Build new relationships throughout the value chain with partners who work in circular construction. Communicate quality demands and negotiate responsibilities. |
2 The implementation of building regulations is geared toward building with new products and materials. The current system is ill-equipped to encompass reused products and does not actively support circular design principles. | Make it easier for authorities and contractors to navigate the existing building regulations to enable and facilitate circular construction. Facilitate and standardise the use of reused products in new settings while ensuring that existing safety and health standards are maintained. Create a reliable and catalogued flow of reusable materials from end-of-life buildings, thus fostering a more stable marketplace for reused and recycled materials Consistency in material mapping and openness with the results will help establish a reliable and robust market for reused building products. |
3 Reused products and materials lack the robust documentation demanded by the construction industry (CE marking, EPDs etc.) | Enable reused products to inspire the same level of confidence as new products through standardised recertification processes. Expand the scope of the demanded standard product information to include reuse-relevant parameters. This will make reusing products easier when they reach end-of-life. Standardised legal process for transferring warranty/guarantees (with or without modification) from original manufacturer to recovery agent of other party Increase the transparency of and access to information about a product for current and prospective users, thus facilitating easier maintenance during lifetime and more streamlined path to reuse at end of life. Increase reuse of elements by allowing and designing for reuse in non-critical elements, where the reused item lacks documentation (but passes the necessary screening for hazardous materials). |
4 Existing allocation of risk and responsibility is ill-suited to the circular use of building products. | New forms of cooperation and dialogue throughout the value chain facilitate a common understanding of where responsibility for reuse products and final buildings lie. Allows all actors to react with confidence throughout the value chain. A broader approach to sourcing construction materials and products facilitates easier entry into circular construction for building and construction companies. Transforming new norms into standardised contracts stabilises circular processes within the construction industry broadly. Public tenders help pave the way to developing many of these forms of collaboration, norms and standardised contracts, and allows for quicker propagation of these within the industry and along the value chain. |
5 Circular construction is more expensive than construction with new products and materials. This is primarily because of the additional time required to engage in circular processes along the value chain. | Rendering the price of reused products more competitive with products made with virgin materials. Incentivising actors throughout the value chain to adopt reuse processes, particularly dismantling and preparing for reuse. Full compliance with separate collection and disposal demands increases the total costs associated with waste generation and raises the baseline costs for demolition, making disassembly and reuse more competitive. An economy-wide or industry-specific carbon tax increases the costs of virgin products and helps make reuse (and recycling) more competitive. Direct injection of capital into the construction industry tied to circular construction projects. Needs to be targeted at projects that develop new knowledge or skills for best return. Increases the total costs associated with new products and virgin materials, making reuse and recycling more financially competitive. Incorporate the induced benefits (for example, increased employment) of circular approaches to construction into the total cost-benefit analyses and strategic decision making. Particularly relevant to projects for public authorities. Specifying circular construction criteria in all public tenders for construction works provides a gateway for the industry to build capacities in new circular methods while maintaining economic viability. |
6 The construction industry is institutionally (and perhaps understandably) risk averse, and circular construction represents an undesired risk. | Provides a clear declaration of intention for the construction industry that indicates not only the direction to take, but also the methods and milestones for transition and the underlying drivers making it necessary. Stepwise integration of circular construction practices into existing processes to enable actors throughout the construction value chain to acclimatise to the concepts and tools associated with circular construction. Promote circular transition among the sector’s most ambitious actors, thus allowing concepts and methods to propagate from certification practitioners. Develop, collect, and disseminate knowledge, best practices, standards, and norms through industry networks to ensure that circularity as a concept takes root in the industry. Integrating new actors into pilot projects to broaden the reach and knowledge of circular construction within the industry. |
2.2. Metrics for circularity
The Ministry of Economic Affairs and Employment in Finland was in charge of the development work for metrics for circular construction. The work was done by Norion Consulting together with NORSUS, Ethica, Chalmers University, and TRE Rådgivende Ingeniører og Biologer. Findings from screening potential indicators, a systematic literature study of the impact of circularity strategies, a Nordic policy review, and stakeholder engagement activities have suggested eleven new voluntary indicators to measure circularity in the Nordic building sector. The findings are compiled in the report “Nordic Networks for Circularity: Metrics for Circularity”.
2.2.1. Challenges in developing new metrics
Implementing new indicators involves academic, political and technical challenges. Academically, the many definitions of circularity make it difficult to choose measurable criteria. Politically, as metrics are also simplified, new metrics may also simplify ambitious policy targets. Technically, the collection and assurance of high-quality comparable data across national borders remain significant hurdles. The dispersed monitoring and diverse strategies across the Nordic countries add to the complexity, demanding a more unified approach to measurement and evaluation. Common metrics for the Nordic countries gives an opportunity for comparison between the countries.
2.2.2. Importance of indicators and monitoring
Effective monitoring of circular construction is vital for assessing progress and aligning with strategic goals. Indicators serve as essential tools for gauging the implementation of circular principles in the construction sector. They provide critical data that can influence policy decisions, identify gaps, and highlight areas of success. The interplay between policy targets and indicators ensures that each supports the other, enhancing the overall effectiveness of policies aimed at fostering a circular construction economy.
2.2.3. Prioritised indicators for circular construction
The NNCC project recognized the need to move beyond simplistic metrics like recycling rates to comprehensively measure progress towards circular construction. A set of 11 indicators were proposed:
Utilisation rate of existing building stock. Total renovations vs demolition and new buildings. Circularity properties of buildings and rehabilitation projects. Land use change Number of EPDs with “circular” properties Share of certified building projects Number of EU Taxonomy-aligned buildings Resource productivity in construction Construction and demolition waste Recycling rates Carbon footprint in the construction sector
2.2.4. Strategy for implementation of the new monitoring framework
In addition to the indicators, the NNCC project outlined a comprehensive strategy to operationalize and embed a joint Nordic framework for measuring circular construction progress. This strategy establishes a long-term vision while providing a pragmatic roadmap to ensure effective implementation and sustained impact.
The long-term objective envisions the Nordic countries utilising a unified monitoring model that enables periodic benchmarking against national policy targets for circular construction. By aligning methodologies and definitions, this model can facilitate robust comparisons and foster a shared understanding of the region's collective advancement. Crucially, the strategy aims to institutionalise this framework by ensuring key national bodies across the Nordics assume responsibility for its implementation, tailored to their unique contexts and policy landscapes.
To achieve this overarching goal, the strategy delineates three primary outputs:
Operationalization of the monitoring framework through extensive collaboration with national stakeholders, piloting innovative indicators, and leveraging readily available data sources. Tackling implementation barriers head-on, mitigating data gaps, harmonising certification schemes, and conducting comparative assessments to identify opportunities for alignment. Ensuring long-term sustainability by implementing incentive structures, establishing a Nordic steering group for continuous evaluation, and developing a comprehensive roadmap with benchmarks extending to 2040.
The image below provides a visual representation of the strategic framework for implementing a new monitoring model for circular construction across the Nordic countries. It is from the report Nordic Networks for Circularity: Metrics for Circularity.
2.3. A Narrative for the Nordic Baukultur
The concept of Baukultur, translating to "building culture", has emerged as a holistic approach that emphasises quality, sustainability, and social inclusivity across all aspects of the built environment. The Ministry of Education and Culture in Finland led the exploration of this notion through the distinctly Nordic lens. Demos Helsinki crafted a narrative for the Nordic Baukultur that envisions a transformative future for architecture, urban planning, and construction practices in the region. The results were compiled in a report “An Invitation to Be Exceptional: A Narrative for the Nordic Baukultur”.
Several cross-cutting themes emerged from the analysis of Nordic architectural policies, each carrying profound implications. Preserving cultural heritage, upholding uncompromising quality benchmarks, and centralising environmental, social, and economic sustainability stood out as foundational tenets of this reimagined Nordic Baukultur. Employing resourceful material management strategies, balancing immediate needs with long-range future perspectives through systemic, holistic thinking – these too surfaced as essential imperatives.
These insights were the key building blocks for narrating a Nordic expression of Baukultur. At its essence, this new narrative posits the built environment as an existential determinant of societal welfare and planetary impacts – a tangible manifestation of collective identity and values. It confronts prevailing realities of unaffordable housing accessibility, opaque development processes, and the construction industry's disproportionate ecological degradation, underscoring an urgent mandate for transformational change.
The narrative builds on the Nordic tradition of universalism, proposing a regenerative approach that actively restores ecological damage while providing quality housing for all. This vision calls for embedding local contexts through regional sustainable materials and traditional construction methods, while empowering communities to partake in participatory development processes.
Ultimately, the Nordic Baukultur narrative advocates for the "end of construction as we know it", ushering a new ethos centred on maximising the use of existing structures, careful deconstruction practices, and the circular reuse of materials. It envisions an equitable transition rooted in democratic tenets of trust and cooperation – a future where citizens are empowered as shapers of the built environment through participatory design models, innovative ownership/financing constructs and technical solutions enabling circularity.
Building upon the foundation of shared regional values, the Nordic Baukultur seeks to foster a future where our constructed spaces are regenerative by design, where each building is an affirmation of quality that contributes to the well-being of all. By merging tradition with innovation, the Nordic Baukultur stands not only as a testament to our time-honoured principles but also as an exemplar of exceptionalism, inviting us to reimagine the built environment as an enabler of societal and ecological prosperity.
2.4. Indicators for Circular Construction: The role of Public Procurement
A study on "Indicators for Circular Construction: The role of Public Procurement" was conducted by Norion Consult. The study continues the indicator development by delving into the role of public procurement in fostering circular construction practices at the municipal level. The overall objective was to support the inclusion of circular construction criteria in public procurement. By examining the strategies employed by municipalities known for their leadership in this area – Bergen, Copenhagen, Gothenburg, Helsinki, and Reykjavik –, it explores how local authorities are integrating circular economy principles into their procurement processes.
One critical indicator for circular construction is the utilisation rate of existing building stock. Municipalities like Helsinki and Gothenburg are taking steps to monitor and optimise the use of existing buildings, prioritising renovation and repurposing over new construction. In tandem with this emphasis on utilising existing structures, some of the analysed municipalities are also shifting their focus towards renovation rather than demolition. The environmental benefits of preserving buildings, combined with considerations of cost, time, and functionality, are guiding decision-making processes. For instance, Copenhagen's recent life cycle analysis of a renovation project highlighted a potential 20 percent reduction in CO2 emissions compared to new construction, underscoring the importance of such strategic choices. However, the economic implications remain a factor, as renovation projects often incur higher costs compared to new builds.
Certification schemes also play a pivotal role in ensuring high standards of sustainability and circularity in construction projects. Municipalities such as Bergen, Helsinki, and Reykjavik have adopted schemes like BREEAM, DGNB, and the Nordic Swan Ecolabel to benchmark their projects against rigorous environmental criteria. These certifications not only provide a framework for sustainable construction but also drive the industry towards higher performance standards, demonstrating municipal leadership in the transition to a circular economy.
Despite stringent regulations and the inclusion of waste handling requirements in certification schemes, effective management of construction and demolition waste remains a challenge. Pilot projects and development initiatives, such as those led by municipalities like Helsinki and Copenhagen, are crucial in testing and refining these practices.
Looking at the examples of these cities is important because they illustrate how innovative public procurement strategies can drive the adoption of circular economy principles in construction. The approaches taken by Bergen, Copenhagen, Gothenburg, Helsinki, and Reykjavik showcase how municipalities can lead by example, integrating sustainability into their procurement processes and setting new standards for the industry. By prioritising the renovation and repurposing of existing buildings, implementing rigorous certification schemes, and actively managing construction and demolition waste, these cities demonstrate the tangible benefits of circular construction. Their efforts highlight the potential for significant environmental impact reductions, improved resource efficiency, and the advancement of sustainable building practices. Learning from these pioneering municipalities can inspire other cities to adopt similar strategies, fostering a broader movement towards a more sustainable and resilient built environment.
2.5. National Fora for Circular Construction
Under the leadership of the Housing and Construction Authority of Iceland and the Green Building Council Iceland, Work Package 6 focused on reinforcing national networks for circular construction. In Iceland, the initiative took tangible form with the creation of the Icelandic Network on Circular Construction – Hringvangur, a dedicated forum aimed at propelling circular economy principles into the mainstream of the Icelandic construction sector. Officially launched in December 2023, Hringvangur currently has over 30 members and this number is expected to grow significantly over 2024 and beyond. The goals of Hringvangur are as follows:
Promote circular economy in the construction sector by, among others: producing and publishing various types of materials related to circular construction in Iceland or abroad; and participating and organising events related to circular construction.
Lobby authorities to pass legislation that will direct the Icelandic construction market in a more circular direction. Educate and motivate stakeholders involved in the construction sector to include circular practices in their work. Connect stakeholders in the construction sector to facilitate implementing circular activities in practice throughout the value chain.
This Work Package also included a series of 3 workshops aimed to deepen the analysis of the obstacles to implementing circular solutions in the Nordic construction sector as well as identify solutions addressing these barriers and solving some of the prioritised bottlenecks. These solution-oriented workshops, facilitated in cooperation with Demos Helsinki and the Green Building Council Finland, successfully convened a wide array of stakeholders, from industry leaders to policymakers.
The first workshop was held on June 1, 2023, as a side event of the World Circular Economy Forum in Helsinki. This session brought together stakeholders to discuss barriers to circular construction and explore potential solutions. A second workshop took place on September 13, 2023, aligned with the Nordic Climate Forum for Construction, where participants further examined the challenges and opportunities within circular construction methods. The final workshop occurred online during the Nordic Circular Summit on October 11, 2023. It connected participants from various sectors to discuss and strategize on advancing the adoption of circular principles in construction.
All in all, these gatherings articulated a clear vision: circular construction is not an isolated endeavour but a communal effort that requires persistent collaboration, innovative thinking, and adaptive frameworks. The collective knowledge gained from three workshops is presented in detail in the next section of this report, as it directly informs the recommendations for the Nordic Council of Ministers.