6. Circular Economy in the Built Environment
6.1 Main findings
Nordic cities are increasingly advancing circular business models (CBMs) to create sustainable built environments by reducing emissions, minimizing waste, and promoting material reuse. Initiatives across Denmark and Sweden, such as the Circular Business Lab, exemplify collaboration in driving circular transformation. Despite this progress, challenges remain, including a lack of standardized legislation for reused materials and financial incentives to enhance competitiveness against new materials. Key enablers for scaling CBMs include clear policies, financial incentives, and collaboration among stakeholders. Digital platforms like Palats and Excess Material Exchange are facilitating material reuse, showcasing the potential for a circular economy in the built environment. Short-term actions, such as fast-tracking regulations and showcasing successful case studies, are essential to push CBMs beyond pilot phases and ensure their integration into urban development.
6.2 Opportunities and best practices
The Nordic region is at the forefront of integrating circular economy principles into the built environment, focusing on reducing waste, promoting resource efficiency, and rethinking the lifecycle of buildings and infrastructure. By adopting circular practices, Nordic cities aim to minimize the environmental impact of construction while maximizing material reuse and extending the life of buildings.
- Material Reuse, Recovery, and Circular Demolition and Design: Nordic cities are increasingly promoting the reuse of construction materials by encouraging deconstruction over traditional demolition. This shift allows valuable materials to be recovered and reused in new projects, thereby reducing the demand for virgin materials, cutting emissions associated with material extraction, and creating local jobs in material recovery and refurbishment. This approach also emphasizes innovation in building design, ensuring that structures are adaptable, repairable, and easier to deconstruct at the end of their lifecycle.Case studies: Bruks-specialisten (Sweden)
& Continuum (Various geographies)
Bruks-specialisten specializes in the reuse of bricks, emphasizing the importance of conserving valuable building materials. Continuum works across various sectors to develop circular business models and facilitate collaborations that drive sustainable practices. These efforts contribute to a more sustainable construction industry by highlighting the value of material recovery.Case study: Pohjois-Hervanta School (Tampere, Finland)
In Tampere, the old Ahvenisjärvi School was demolished to pave the way for a new building grounded in circular economy principles. The demolition revealed reusable elements such as air conditioners and windows, while concrete was crushed for use in other city projects. Despite challenges with interim storage and reuse planning, the project emphasized Design for Disassembly (DfD), aiming to make future repairs and adaptations easier. This positive initiative is expected to yield valuable insights on extending building lifecycles and enhancing material reuse in future construction projects. - Circular Economy Transition: Nordic initiatives are increasingly focused on facilitating the transition to a circular economy by bridging the gap between academia and industry. This approach promotes collaboration among businesses and research organizations to innovate and implement sustainable practices that drive systemic change.Case Study: Circular Business Lab (RISE, Sweden)
RISE, an independent research organization in Sweden, has established the Circular Business Lab as a collaborative innovation space for companies seeking to transition toward a circular economy. The lab operates on a membership basis, currently engaging 12 organizations and fostering a cluster approach to address specific circularity challenges. Key initiatives include exploring alternative business models in sectors such as furniture and electronics, conducting workshops to develop methodologies for evaluating circular versus linear business practices, and performing benchmarking studies to analyze successful strategies. This model not only enhances knowledge sharing but also positions RISE as a leader in driving sustainable innovation across industries, promoting long-term partnerships to tackle shared challenges in the pursuit of a circular economy. - Circular Business Support Initiatives: Nordic organizations are pioneering efforts to support businesses in transitioning to circular economy practices, emphasizing collaboration and innovation. By providing resources, platforms, and expert guidance, these initiatives help companies adopt sustainable business models and reduce environmental impact in the built environment.Case studies: Danish Design Centre
& Cradlenet
The Danish Design Centre plays a vital role in helping businesses explore and implement circular business models through workshops and consultancy. It fosters collaboration among design professionals to promote sustainability in product development. Similarly, Cradlenet focuses on advancing circular practices and material reuse by connecting stakeholders and sharing knowledge on sustainable initiatives. Together, these organizations exemplify a commitment to driving systemic change across industries. - Innovative Business Models and Sustainable Product Development: New business models and sustainable product development strategies are emerging in the Nordic region, promoting circularity by offering flexible solutions for product use and ownership, and prioritizing sustainability in design.Case studies: Nornorm (Denmark)
& Home.Earth (Sweden)
Nornorm introduces a Product-as-a-Service model for office furniture, allowing companies to rent furniture instead of purchasing it, thereby promoting reuse and sustainable design. Home. Earth focuses on exploring circular practices in the built environment, providing resources and insights to stakeholders about sustainable construction practices. These initiatives highlight the shift toward innovative, circular business models in the region.Case studies: Fagerhult (Sweden)& Ecophone (Sweden)
Fagerhult specializes in energy-efficient lighting solutions designed with circularity in mind, emphasizing product longevity and recyclability. Ecophone focuses on acoustic roofing solutions that incorporate sustainable materials, promoting waste reduction and resource efficiency in construction. These companies demonstrate how circular economy principles can be integrated into product development to enhance sustainability in the built environment. - Digital Platforms for Material Reuse: Digital platforms are essential in facilitating the mapping and reuse of construction materials, enabling a circular economy by making reclaimed materials accessible for new projects. These platforms reduce waste and encourage resource efficiency in construction.Case studies: Zupply
(Denmark), Excess Material Exchange (Sweden), Palats (Sweden)
Zupply is a digital platform that maps and connects suppliers of building materials with those seeking reclaimed resources, promoting reuse across the construction sector. The Excess Material Exchange operates a marketplace for recovered construction materials, allowing businesses to list surplus materials for reuse, reducing waste and fostering sustainability. Palats provides a similar service in Sweden, focusing on the reuse of building materials. These platforms are instrumental in driving the circular economy in the built environment.Case studies: Loopfront (Norway)& CCbuild (Norway)
Loopfront and CCbuild are platforms that facilitate the digital exchange of reused building materials, connecting suppliers with buyers and promoting the adoption of reclaimed resources in construction projects. These initiatives significantly contribute to reducing waste and enhancing the circular economy in the built environment.
6.3 Main Barriers
Incorporating circular economy principles into the built environment presents both opportunities and challenges. Key barriers include value loss and increased risks associated with traditional construction practices, which emphasize linear models of resource use. Adopting circular business models (CBMs) requires a collaborative, interdisciplinary approach, with early analysis and an understanding of existing conditions being crucial for success. A prevalent misconception is that new construction is inherently superior to circular practices, such as reuse and modular buildings, often viewed as lower quality. This perception, compounded by fragmented regulations across municipalities, limits the widespread adoption of modular construction.
To address these challenges, there is a pressing need for standardized regulations that focus on functionality rather than rigid technical details, along with efforts to shift public and policy attitudes toward sustainable solutions. Additionally, conducting extensive life-cycle analyses (LCA) is essential for accurately assessing the advantages of biobased materials, considering their environmental impacts throughout their entire lifecycle – from raw material extraction to use, disposal, and potential reuse.
6.4 Recommendations
- Promote Circular Economy in Construction
- Develop strategies for material reuse with clear guidelines and standardize low-carbon construction practices.
- Develop National Circular Economy Strategies for the Built Environment
- Mandate circular practices across construction, establishing regulations for material reuse in public projects.
- Support Local Low-Carbon Building Material Initiatives
- Create local initiatives prioritizing low-carbon and locally sourced materials in public projects.
- Electrify Construction Equipment at Local Level
- Mandate circular principles in local public procurement processes for construction projects.
- Implement Local Take-Back Schemes for Building Materials
- Support local schemes for construction companies to return used materials for refurbishment.
