Raising awareness of construction barriers

POLICY BRIEF JULY 2025 This deliverable is currently awaiting approval from the European Commission. Raising awareness of construction barriers Impact of construction sector 2/5 The transition towards circular construction presents a series of complex challenges that require an integrated approach. It is about addressing environmental and social dimensions while fostering sustainable economic development. These challenges can be summarised into four main areas: Environmental impact of construction materials such as cement and steel, which are among the leading contributors to carbon emissions. Design for disassembly principles is fundamental in this context. Inefficiency of construction and demolition waste continues to strain landfills and increase environmental degradation. Efficiently sorting and separating construction and demolition waste for valorisation is pivotal. Absence of an integrated policy and regulatory framework: this fragmentation hinders systemic progress and coordination across the sector. Digital transformation of the construction industry: digitalisation, through building information modelling (BIM), sensing technologies, artificial intelligence, and robotics, is essential for maintaining competitiveness and meeting sustainability goals. Barriers to this include high implementation costs, cybersecurity concerns, skills shortages, and resistance to change. Without targeted support, these challenges risk widening the digital divide within the construction sector and slowing the transition toward a circular construction sector. This policy brief provides an in-depth analysis of some of these barriers, proposes practical solutions, and explores the legislative pathways to enable a circular, digital, and sustainable construction sector in Europe. Key points RECONSTRUCT promotes circular, low-emission constructions by replacing conventional materials with local, low-carbon alternatives, using reclaimed components, and embedding design for disassembly. The project focuses on reducing non-renewable material use through circular strategies that include developing alternative materials, digital systems for sourcing secondary materials, creating reusable building components, and integrating deconstruction into design. The construction industry – one of the largest sectors in terms of environmental and social impact at EU level – faces increasing pressure to transition from a conventional to a circular economy. This transformation presents several challenges that must be addressed to promote sustainability in both ecological and social dimensions. 40% of the EU’s waste in 2022 came from the construction sector* *Source: EUROSTAT CHALLENGE POLICY RECOMMENDATION HOW RECONSTRUCT SUPPORTS What is the issue? Issue 3/5 D i g i t a l i s a t i o n C i r c u l a r E c o n o m i c P r a c t i c e s P o l i c y & R e g u l a t i o n s I n n o v a t i o n & T e c h n o l o g y I n n o v a t i o n p o l i c i e s P r o j e c t r e s u l t s F i n a n c i a l i n c e n t i v e s O p e n s t a n d a r d s C i r c u l a r i n n o v a t i o n h u b s E d u c a t i o n & t r a i n i n g P r o c u r e m e n t g u i d e l i n e s C r o s s - s e c t o r c o l l a b o r a t i o n Policy & Regulations Circular Economic Practices Digitalisation Innovation & Technology What can be done 4/5 CHALLENGE POLICY RECOMMENDATION • Despite growing awareness of circular economy principles, construction regulations still largely favour conventional practices, lacking integrated support and consistent implementation, particularly in addressing social sustainability impacts. • Stronger, integrated policies are needed to drive change in construction, updating procurement to mandate circular principles and include social criteria like fair labor and community impact. • Clear enforcement mechanisms and cross-sector collaboration should be established to ensure consistent implementation across regions. SOLUTIONS RECONSTRUCT contributes to the development of construction regulations by addressing the current gap between circular economy awareness and actual practice. It thus promotes integrated support and consistent implementation, particularly in tackling the social sustainability impacts. CHALLENGE POLICY RECOMMENDATION • The construction sector is a major driver of carbon emissions and waste, largely due to the use of energy-intensive materials like cement and steel, and the disposal of up to 40% of global waste from construction and demolition. Tackling these issues demands a shift to circular practices, using low-carbon materials, energy-efficient designs, and effective waste management strategies • The EU can drive circular construction by integrating key insights from the Framework for Circular Construction and similar projects into innovation policies and programmes. • To stay effective, project results and recommendations must be continuously updated, accessible, and ready for practical use. SOLUTIONS RECONSTRUCT supports the construction sector in reducing its significant carbon emissions and waste, primarily caused by materials like cement and steel, as well as demolition debris, by promoting circular practices. CHALLENGE POLICY RECOMMENDATION • Digital technologies like BIM, AI, and robotics can boost efficiency, support circularity, and enhance decision-making. However, its adoption, especially by SMEs, is slowed by costs, cybersecurity risks, skill gaps, and cultural barriers. Long-term, coordinated policies are key to ensuring digitalisation supports sustainability and inclusion. • Provide financial incentives (e.g., grants, tax breaks) to support the adoption of digital tools that enable circular construction practices, particularly targeting SME • Establish and mandate open standards and interoperability frameworks to ensure seamless, secure data exchange across platforms and stakeholders. SOLUTIONS RECONSTRUCT empowers SMEs and stakeholders through practical tools, training, and regional hubs. It tackles key adoption barriers like cost, skills gaps, and data governance. CHALLENGE POLICY RECOMMENDATION • Circular construction faces major hurdles, including fragmented knowledge, lack of standards, regulatory gaps, and limited incentives, hindering the adoption of innovations like AI-driven sourcing, Digital Product Passports (DPPs), digital twins, and low-carbon materials. • Establish circular innovation hubs to support policy co-design and stakeholder-driven transition to circular construction. • Provide incentives for industry-academia collaboration and ensure access to education and training to build capacity in circular practices. SOLUTIONS RECONSTRUCT addresses these barriers through a Dynamic Learning Agenda (DLA). Specially, it sues co-creation, modular piloting, and continuous stakeholder engagement to align innovation with real-world needs and support scalable, adaptive solutions. Bell, S., & Morse, S. • 2000 • “Indicators for sustainable development: The changing framework.” Sustainable Development, 8(1), 2-12. Charef, R., et a. • 2021 • Barriers to Implementing the Circular Economy in the Construction Industry: A Critical Review”, Sustainability, 13, 12989. Galatti, L., & Baruque-Ramos, J. • 2022 • “Social impact of Circular Economy in Brazil’s textile and fashion industry.” Journal of Sustainable Development, 23(4), 123-145. Hale, T., et al. • 2019 • “Measuring social sustainability: The role of indicators in shaping social outcomes.” Environmental Sustainability, 10(1), 32-45. Hicks, C., et al. • 2016 • “Social Sustainability Indicators: A comparative review of approaches.” Sustainable Development, 24(3), 157-174. Padilla-Rivera, F., et al. • 2020 • “Social sustainability indicators for Circular Economy.” Journal of Sustainable Construction, 15(6), 89-105. Pitkänen, P., et al. • 2023 • “Social sustainability indicators for Circular Economy in Finland.” Sustainability Review, 18(2), 204-215. Revel, G.M., et al. • 2023 • “White Paper on Sustainable Material-based Solutions For Energy Efficient Buildings”. DTU Research Database. Policy Brief • July 2025 For further information: www.reconstruct-project.eu [email protected] Co-funded by the European Union Sources 5/5 Co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or REA. Neither the European Union nor the granting authority can be held responsible for them.