Circular economy in real estate and construction industry: maximum value and minimum waste

The world’s population growth, depletion of natural resources and air pollution require societies to rethink and change current consumption habits. Climate change is speeding toward catastrophe and the existence of linear economy, which is based on low-cost production, assuming unlimited access to large quantities of materials and unlimited waste production capacity, will not be possible any longer. The construction industry not only is responsible for significant quantities of global greenhouse gas emissions, but also produces the large amount of waste – from the beginning of building construction to later everyday maintenance. Moreover, only a tiny percentage of construction waste can be recycled back into circulation. The transition from a linear to circular economy may be a solution of these problems, because the circular economy focuses on waste prevention and environmental protection, together with a positive effect on economic growth. But this will not be possible without making any changes especially in real estate and construction industry.

From linear to circular economy

The linear economy is a model of production and consumption, which is based on the extraction of resources to make products that are used and finally end up as waste and are thrown away. This model relies on achieving economic benefits by cheap materials and energy (assuming unlimited access to them). Therefore, the linear economy does not solve social and environmental problems. What is important, most economies in the world (including the construction industry) currently follow a linear economy model.

The circular economy, unlike the linear one, relies on using existing materials and products as long as possible. Furthermore, waste is eliminated because all materials and products are prepared for reuse and recycling, so they are kept in circulation at their highest value all the time. The circular economy model follows the 3Rs principle:

• reduce,
• reuse,
• recycle.

First and foremost, the most important thing is to reduce the amount of waste using less resources to manufacture things. In the second place, we should use products as many times as possible for the same or for different purpose. Finally, if the product no longer serves its purpose, recycling comes into play. However, some types of recycling processes can be energy intensive and that is why recycle is in the third place.

There are various benefits from circular economy, such as protecting the environment, boosting economic growth, creating jobs and reducing raw material dependence on other countries.

In the future, the circular economy could replace the linear one. Both the European Union and Poland proposed various growth strategies and policy initiatives for this purpose (e.g. The European Green Deal, which aims to make the European Union’s climate neutral by 2050).

Changes and new developments

Construction accounts for more than 35% of total EU waste. It is also a big user of natural resources, which may be limited soon. Lack of housing and land scarcity is another key problem, that is particularly noticeable in the largest European cities such as Paris or London. In the future, Warsaw may be confronted with it too.

Because of these challenges, the transition from a linear to circular economy won’t be possible without considering and making some changes in the construction industry, with regard not only to the building design or building materials used in construction, but also conversion and adaptation of existing buildings. One of the 10 main goals included in the European Green Deal is building renovation, that can reduce greenhouse gas emissions and improve the property usability (what is important in land scarcity case). Modernization of existing buildings may Increase the value of the property in a long term and protect green areas in cities from building up.

Nowadays if we want to change the function of a building, it is still cheaper to demolish this building and build a new one, than do a full renovation. The implementation of circular economy will implement changes, because according to the 3Rs principle – waste production, greenhouse gas emissions and use of natural resources must be reduced.

In circular economy, durability and long lifespan of buildings are crucial. The building should be designed in a way that makes it able to adjust easily to another use without major renovation or rehabilitation work and thus, reduce materials and costs. For example, an office building can shift to housing or commercial and back again. Better anticipating the different ways in which a building can be used will be an important aspect of building design in the future.

Another important issue is construction waste prevention. In circular economy, even after demolition all materials and products should be reused (and kept in circulation). However, it means we still have to find more sustainable solutions and new materials, such as hempcrete. Another issue is creating building systems that can be easily disassembled and reassembled. Circle House, located in Lisbjerg near Aarhus in Denmark, is a good example of it. The goal of this project is that 90% of used materials can be dismantled and reused in other buildings while keeping their aesthetic and economic values intact.

Summary

Transformation towards a circular economy in real estate and construction industry will be a challenge for all, especially in Poland. Nevertheless, it will provide an opportunity to create new jobs and businesses engaged in building renovation or recycling construction materials. The clue is to raise people’s knowledge and awareness of climate changes, circularity in construction and finally, make some changes (including e.g. technology) to create the best conditions for this transformation.

Karolina Sawczuk
Junior Specialist in Research and Market Service