Circular economy in the Dutch construction sector - A perspective for the market and government | Knowledge Hub | Circle Economy Foundation
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Policy case
Circular economy in the Dutch construction sector - A perspective for the market and government
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This report explores the relevance of the concept of the ‘circular economy’ for the Netherlands’ construction sector, and also the reverse, what the construction sector could contribute to the circular economy in general. In various ‘Green Deals’ and other societal initiatives, the circular economy is the main theme, or at least an important side issue. The Ministry of Infrastructure and the Environment (IenM), the commissioning party for this survey, wants to know in particular what the role of the Dutch government should be in the efforts to make the economy in the construction sector circular. As the basis for this report, the frontrunners and sector organisations in the area of circular economy as related to the construction sector were asked to help the government to answer this question. 

Problem

The construction sector uses large volumes of material: more than half of all the materials used in the Netherlands are used in the construction sector. Large waste flows are created by the construction, renovation and demolition of buildings; these flows are many times greater than the volume of household waste. For the construction sector, scarcity is generally not the main reason for introducing the principles of circular economy. In the recent past it was the scale of the waste flows, currently the concerns about the major environmental impact of construction materials that drives the frontrunners in their efforts to introduce a circular economy. For instance, on the global scale, concrete and steel production account for approximately 17% of all the CO2 emissions related to human activity.

Solution

Most of the principles of circular thinking have been applied to the construction sector, in theory and to some extent also in practice. Several manufacturers have successfully launched circular products onto the market (examples: paving bricks, carpet tiles and even complete ‘built in a day’ housing projects). However, there are still many challenges in every area before the construction sector actually adopts the circular approach.


In view of this, the overarching advice of stakeholders is: get started! Start with pilot projects, share learning experiences and work to jointly improve knowledge. The term ‘Living Labs’ is often used in this respect. Government organisations are by far the most important commissioning parties in construction and can make a major contribution by including circular aspects in projects by, among other things, including them in (sustainable) procurement.


Moreover, the government can contribute by assisting the further development of environmental assessment instruments and integral cost instruments. For instance, the environmental LCA (Life Cycle Assessment) can become a Multi-Cycle Assessment (MCA) and Life Cycle Costing (LCC) Multi Cycle Costing (MCC). Such methodology requires new calculation tools, databases etc. Companies do not expect the government to do all the work, but they do wish for initiatives to facilitate cooperation and, as a commissioning party, to be actively involved in this development. The question is whether in a circular economy the government can keep the same distance to the market as is currently often customary. After all, as the commissioning party, the government is part of the loop and as such is co-responsible for the cooperation between the links in the chain

Outcome

The stakeholders have also been asked what they expect will be the most important impediments to closing the loop. For many such impediments are related to the stagnation that the construction sector has faced in recent years. On the one hand, many office buildings and business estates are vacant, while on the other, there is a shortage of affordable, modern, energy-efficient homes. Urban renewal (‘Agenda Stad’, 2015) is a theme that is enormously popular with many municipalities and their inhabitants. At the same time, the legacy of the financial crisis is that there are no funds available to effectively solve the problems of vacant buildings. The reflex is to initiate new-build projects on greenfield sites instead of redevelopment existing areas (‘infill’). The chance to create green, smart cities using the existing buildings as the source of raw material is overlooked. It is extremely clear that a successful circular economy will only gain momentum if these financial impediments are solved coherently. 

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Circular House Construction in the Netherlands