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Summary

The objective of the Nordics to take the lead in a sustainable and competitive construction and building sector comes with an ambition to reduce the environmental and climate impact of construction. Authorities at all levels must lead the way and remove any barriers that might hinder the transition to a cleaner construction sector.
This report identifies and categorises the barriers to implementing emission-free construction sites. It is based on published research, stakeholder dialogue, and insights from pilot projects. The findings are further supported by a survey in which stakeholders rated the impact of these barriers and provided additional feedback. The report highlights key obstacles across four main categories: policy and regulatory barriers, financial barriers, technological barriers, and systemic barriers. However, it also sheds light on encouraging progress and emerging solutions that indicate a growing momentum in the industry.

Policy and regulatory barriers

  • Regulatory gaps and political inaction – the lack of strong, unified regulations that mandate the reporting and reduction of emissions on construction sites and slow political responses have delayed progress towards achieving emission-free construction.
  • Unconducive standards and building codes – regulation that hinders development towards achieving emission-free construction sites.

Financial barriers

  • Higher initial cost – emission-free construction methods are still more expensive than traditional methods, and projects may take longer due to technological constraints.
  • Project duration – new technologies result in projects taking longer and costing more.
  • Waste reduction – although reducing waste can lower costs, there may be upfront expenses associated with waste management techniques.
  • Finance – financiers need to prioritise environmental performance over financial gains and provide access to financing for low-emissions projects and equipment.
  • Risk – innovation, such as the implementation of emission reductions in any form, is inherently risky.
  • Procurement – stakeholders have pointed out that systems for awarding contracts based on low emissions must not be tailored to one technology, such as battery electric machinery, since that could hinder development beyond what is currently available.

Technological barriers

  • Limitations of biofuels – HVO and biodiesel are only sustainable alternatives when the raw material is waste, such as used cooking oil or waste animal fat.
  • Availability of machinery and equipment – availability is one of the barriers most often mentioned in discussions with stakeholders.
  • Uncertainty about performance and development – the construction industry rarely allows experimentation, as unfamiliar technology can lead to unforeseen issues, increasing costs and delays.
  • Charging bottlenecks – construction in new areas can be delayed due to the development of grid infrastructure, while in older urban areas the electric grid may already be at full capacity.
  • Hydrogen infrastructure – although hydrogen is produced in most of the Nordic countries, there is very limited distribution infrastructure for customers in transport and construction.
  • Waste infrastructure – many construction sites lack proper storage, leaving materials exposed and vulnerable to damage.

Systemic barriers

  • Speed and timeline constraints – time constraints in projects discourage the adoption of new methods, with short-term costs being prioritised over long-term sustainability benefits.
  • Process complexity and integration issues – the involvement of multiple contractors, subcontractors, suppliers, and stakeholders with diverse backgrounds and requirements makes implementing project-wide changes difficult, emphasising the need for collaboration.
  • Lack of data and measurement challenges – reliable data is essential for achieving emissions-reduction targets, enabling stakeholders to make informed decisions.
  • Lack of knowledge and resistance to change – many remain unaware of the impact of construction site emissions and the available ways to reduce them.
  • Current economic structure – although renovating and reusing buildings reduces emissions by avoiding demolition and new construction, economic models often favour new builds.
The findings in this report emphasise the urgent need to address persistent barriers while building on the positive progress already made. The integration of LCA into regulatory frameworks and applying harmonised limit values on emissions in the Nordics is an excellent example of this progress. Successful actions of municipalities have demonstrated that emissions can effectively be reduced in construction. While pilot projects highlight barriers, they also provide new knowledge and set the stage for further success.
Policymakers and industry stakeholders must continue to work together to develop unified regulations, prioritise financing for sustainable projects, and invest in the necessary technological and systemic infrastructure.
By removing obstacles and scaling up proven solutions, the Nordic countries can lead the way in creating a sustainable, competitive, and emission-free construction sector. This report aims to inspire action by showcasing both the challenges that remain and the promising developments that pave the way forward.