by Antonia Egli and Radhika Deorukhkar (Dublin City University), edited Aitana Sáez-de-Guinoa, David Zambrana-Vasquez, Víctor Fernández, and Carmen Bartolomé
Why is the Building Renovation Sector at a Critical Juncture?
Imagine a world where buildings produce zero waste. Today, the reality is stark: the construction sector is one of the most resource- and waste-intensive industries in Europe. In 2018, its demolition and construction waste accounted for a staggering 35.9% of all waste generated across the continent.
Furthermore, buildings are major contributors to the climate crisis. They are responsible for 40% of the European Union’s total energy consumption and generate 36% of its greenhouse gas emissions. This challenge is particularly urgent because Europe’s housing stock is ageing. Over 220 million buildings, many over 21 years old need to be modernised and made energy-efficient. This situation demands immediate, systemic action.
What Did the Research Set Out to Achieve?
To tackle this climate and waste emergency, the research Circular Economy in the European Construction Sector: A Review of Strategies for Implementation in Building Renovation examined the implementation of circular economy (CE) strategies within the European building renovation sector. The study highlights a crucial gap: the EU’s current energy renovation rate is only 1%, far short of the 3% rate required to meet official energy efficiency and climate targets.
The RINNO paper, a systematic literature review combined with PEST (Political, Economic, Social, Technical) and SWOT (Strengths, Weaknesses, Opportunities, Threats) analyses, aimed to identify major barriers and drivers. The core question was: How can the CE framework be effectively applied to deep renovation to maximise material efficiency and energy savings? The findings clearly indicate that a systemic shift is required across all project stages, from initial design to end-of-life management.
Key Insights: Why is Deep Renovation Not Scaling Up?
Why is initial design the most critical decision?
The design phase is considered the determinant stage for transitioning to a circular economy in construction. Decisions made here pre-determine how successfully circular strategies can be realised later, especially at the end of a building’s lifespan. The most effective strategies identified are design, material recovery, building renovation, and end-of-life actions, in that order. This highlights the necessity to consciously “design out waste” from the very beginning.
How can construction waste be radically cut?
One clear answer lies in adopting off-site construction and prefabrication. Using elements that are manufactured and assembled externally can significantly reduce waste streams on site. Estimates suggest that the prefabrication system can reduce total Construction and Demolition Waste (CDW) by between 65-80%. Furthermore, energy efficiency must be integrated from the start by optimising the building’s shape and orientation.
What financial barriers stop deep renovation?
Despite the necessity, the market faces significant weaknesses that limit widespread adoption. High renovation costs, often a result of complex regulatory requirements, act as a powerful deterrent for owners. There is also a notable scarcity or complete absence of specific loans designed to fund deep renovation projects for single-family houses. Compounding this, owners and small businesses often lack sufficient knowledge and confidence in the deep renovation process itself.
How Do These Findings Impact European Policy and Industry?
This research offers a clear roadmap for policymakers implementing the European Green Deal and the Circular Economy Action Plan. The findings underscore that a singular focus on new construction, which many companies currently prefer, will not solve the EU’s climate crisis. The transition requires policy actions that simplify complex legal requirements and create economic mechanisms to make deep renovation viable.
The social interest in climate change mitigation, sustainability, and personal comfort is an undeniable driver that must be leveraged. For example, policy should introduce tax credits for energy-efficient buildings while penalising poorly performing ones through a more progressive property tax system. Targeted loans and other financial incentives are crucial instruments to motivate sceptical homeowners and decrease the long payback times associated with comprehensive renovation.
The market potential is immense: as buildings continue to age, the demand for deep renovation is growing. Successful, large-scale CE implementation would not only reduce the EU’s largest waste stream but also create sustainable growth and jobs across the continent. The goal is to evolve the renovation market from a fragmented one into an attractive, profitable, and essential contributor to achieving EU climate neutrality by 2050.
What is the Next Step for a Circular Future?
The shift to a truly circular construction sector hinges on overcoming current policy and financial hurdles. Future success depends on simplifying complex legal requirements and deploying financial tools like grants or progressive taxation to incentivise homeowners. By focusing on smart design and supporting the transformation of the existing building stock, Europe can accelerate its renovation rate from 1% to the necessary 3%. This is a crucial next step towards achieving complete climate neutrality.
Reference:
Sáez-de-Guinoa, A., Zambrana-Vasquez, D., Fernández, V. and Bartolomé, C. (2022). Circular Economy in the European Construction Sector: A Review of Strategies for Implementation in Building Renovation. Energies, 15(13), p.4747. doi:https://doi.org/10.3390/en15134747.
This project has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement No 892071.