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The Construction Sector's Circular Conundrum: A Sinking Foundation for Eurozone Ambitions

The Construction Sector's Circular Conundrum: A Sinking Foundation for Eurozone Ambitions
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Table of contents

  1. The construction sector’s sinking circular foundations
    1. Progress halted by construction waste
      1. Tonnes of waste generation in construction sector increases
        1. What's going on?
          1. Labour shortages and more renovation
            1. Contributions to waste in the EU
              1. Construction sectors produce more than a third of all EU waste
                1. High-grade and low-grade circular construction

                  The construction sector’s sinking circular foundations

                  Eurozone construction companies may have ambitions to improve circularity in their sector, but rising waste levels show things are not going to plan. While the circularity rate of building materials is higher than that of the EU economy overall, we're seeing signs of stagnation. Circular construction goals are starting to slip out of reach

                   

                  Progress halted by construction waste

                  In the path toward creating a circular economy, the process of reducing waste levels is absolutely crucial – and we're seeing this take place slowly but surely in the European Union's economy as a whole. The total amount of waste has decreased by almost 3% in the last decade and by approximately 8% in the manufacturing sector.

                   

                  However, it seems the opposite has occurred in the construction sector, with the amount of waste growing by more than 6% from 2010-2020. Construction waste refers to the waste and debris generated from building, renovation and maintenance, demolition and construction site clearance. This includes materials such as concrete, wood, metals, bricks, insulation materials, glass and plastics. And we'll be trying to understand the reasons why in the report.

                   

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                  It's important to consider the role of the European Commission in all this. As the green transition route continues to evolve, the EC presented a number of measures dedicated to making sustainable products the norm. The European Green Deal package, introduced last year, is set to play a major role in moving progress along. A key part of the proposal is the revision of the Construction Products Regulation, which aims to make the design and manufacture of construction products more durable, recyclable and easier to re-use.

                   

                  But as we try to move closer to developing a circular economy, the construction industry is still a huge waste producer; in 2020, it contributed 37% of total waste in the EU.

                   

                  Tonnes of waste generation in construction sector increases

                  Development total waste generation in EU-27 in absolute tonnes (not corrected for production volume development), Index 2010=100

                   

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                  What's going on?

                  Construction waste increases as production volumes fall
                  Transitioning towards a circular economy should signal a drop in the amount of waste in tonnes. An increase in production levels could provide one explanation for rising levels – yet, in relative terms, waste generation in the construction sector only appears to have worsened. The sector faced a drop in production levels by 7.6% in the years 2010-2020, while the manufacturing sector experienced a rise of 11.6% and all economic activity grew by 8.1% in the same period. As a result, the level of construction waste per unit output has increased even further.

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                  Labour shortages and more renovation

                  We see two possible reasons for the increased amount of waste in the construction sector. Due to the shortage of workers, construction companies may opt for new materials instead of reusing old ones, as the latter can be more labour-intensive. Additionally, the share of the renovation and maintenance market has increased in recent years. Both the demolition and removal of existing building materials mean that renovation projects often generate more waste than new construction.

                   

                  Contributions to waste in the EU

                  As we move closer to developing a circular economy, it is very important to pay attention to the construction sector as a huge producer of waste. In 2020, it contributed 37% of total waste in the EU.

                   

                  Construction sectors produce more than a third of all EU waste

                  Share of generation of total waste in tonnes in EU-27, 2020

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                  the construction sector s circular conundrum a sinking foundation for eurozone ambitions grafika numer 2the construction sector s circular conundrum a sinking foundation for eurozone ambitions grafika numer 2

                   

                  High-grade and low-grade circular construction

                  There are many different circular construction methods. The best option is to reuse high-grade building materials and parts – or even to repurpose the buildings themselves. In the construction sector, this is often seen in the transformation or renovation of existing buildings. Recycling should only be used as a last resort.

                  For instance, a wooden frame has a much higher value than the wood it is made of – and the circular economy is heavily centred around retaining as much value as possible. The more buildings we're able to repurpose and building material parts that can be reused, the better.

                   

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