capinorium · Article · Construction & real estate
Circular economy in construction: the biggest lever is product development
For construction product manufacturers, the circular economy delivers the greatest benefit where products can be used for longer, dismantled and reused. Recycling is already well developed in construction, but replaces only a small share of primary raw materials. Whether a product will have a second life is therefore decided mainly during its development, and less at demolition.
The starting point is well known. In Germany, mineral construction waste accounts for around 61 per cent of total waste. According to the Global Status Report for Buildings and Construction 2024/2025, the buildings and construction sector causes 34 per cent of global CO₂ emissions. What is new is that pressure is coming from several directions at once: from the new EU Construction Products Regulation, Germany's National Circular Economy Strategy and an announced European circular economy law. For managing directors and heads of development in mid-sized companies, this raises a practical question: where is the best place to start? The answer follows from the legal order of priorities, from the limits of recycling and from the point at which reusability is determined.
Reuse comes before recycling – for physical reasons
Section 6(1) of Germany's Circular Economy Act (KrWG), which implements the EU waste hierarchy, sets a fixed order: prevention, preparation for reuse, recycling, other recovery including backfilling, and finally disposal. This order is not administrative logic. It follows from how much of a product is preserved in each case.
A component that continues to be used as a whole retains the energy, raw materials and emissions that went into its manufacture. Recycling crushes or melts it down. Much of this prior investment is lost, and reprocessing requires new effort. This weighs particularly heavily for concrete and steel: according to GlobalABC, cement and steel together account for 18 per cent of global emissions.
Between simple reuse and recycling lie two stages that are often confused. Refurbishment means cleaning, inspecting and repairing a product. Remanufacturing means dismantling it, replacing wearing parts and reassembling it, often improving it technically in the process. In both cases, the product's form is preserved.
The order of priorities does not apply blindly, however. Under Section 6(2), what counts is the solution that is best for people and the environment over the entire life cycle. A reused window with poor thermal insulation can cost more heating energy over decades than its reuse saves. Anyone planning reuse therefore needs a life-cycle assessment rather than a rule of thumb.
Recycling in construction is well developed but reaches volume limits
Measured by its recovery rate, the construction industry is doing well. According to the 14th monitoring report of the German initiative Kreislaufwirtschaft Bau, 90.4 per cent of the roughly 208 million tonnes of mineral construction waste in 2022 was recovered in an environmentally sound way. But the figure says little about how much new material is replaced as a result. Recycled building materials covered only 13.3 per cent of the demand for aggregates. In addition, according to the German Environment Agency, part of the demolition rubble goes into backfilling or landfill construction, i.e. the second-to-last stage of the hierarchy.
There is a genuine controversy here. Germany's National Circular Economy Strategy aims to double the share of secondary raw materials in raw material consumption by 2030. The construction industry associations, on the other hand, consider the substitution potential to be almost exhausted. Both positions contain a kernel of truth. Recycling can only supply as much material as there is waste, and the demand for building materials is far greater. It follows that higher recycling rates alone will not decisively reduce the consumption of primary raw materials. For that, less new material must be needed – and that is exactly what longer use and reuse achieve. At the same time, they reduce dependence on increasingly scarce raw materials and volatile supply chains.
Reusability is determined in development
Whether a component can be dismantled and used again in thirty years depends on decisions made in development today. Detachable connections instead of adhesives, single-material components instead of inseparable composites, standardised dimensions and permanent labelling with material and performance data determine a product's later value. These properties can hardly be added afterwards.
The new Construction Products Regulation (EU) 2024/3110 takes up this logic. Products that are reused directly in the same construction works are not considered to be placed on the market again (recital 34). Requirements or incentives are to apply to remanufactured products (recital 36). Among the possible product requirements, Annex III also lists ease of dismantling. Under Article 22, the Commission can oblige manufacturers to keep spare parts available, in principle for ten years after the last product of a type has been placed on the market.
For manufacturers, this is first a business model question and only then a technical one. An illustrative example: a manufacturer of façade elements that wants to take back its elements, inspect them and offer them again after refurbishment needs answers to questions that no design engineer can answer alone. Who organises dismantling and transport? How is the performance of a used element demonstrated, and who is liable for it? Does refurbishment pay off compared with new production at realistic return volumes? Such questions belong in a feasibility study before development budget is committed.
The next legal framework is in sight; the details are open
According to EUWID, the European Commission intends to present its Circular Economy Act on 11 November 2026. A single market for secondary raw materials, uniform rules for end-of-waste status and extended producer responsibility are expected. How strongly construction products will be covered is still open. Waiting is nevertheless not a good option, because development cycles in construction are long. A sensible first step is an inventory: which product line would have a realistic second use, and what does it lack for that today?
Frequently asked questions about the circular economy in construction
What does the circular economy mean for construction product manufacturers?
For construction product manufacturers, the circular economy above all means developing products so that they can be used for a long time, dismantled without damage, refurbished and reused. Recycling remains important, but ranks lower in the order of priorities set by Germany's Circular Economy Act and the EU waste hierarchy. Detachable connections, single-material components, permanent product data and a viable take-back model are decisive.
Why is reusing building components usually better than recycling?
Reusing a building component preserves the energy, raw materials and emissions that went into its manufacture. Recycling crushes or melts the component down and requires new energy. An exception applies when an old component consumes significantly more energy in operation than a new one, for example a poorly insulated window. In that case, the life-cycle assessment decides.
How high is the recycling rate for construction waste in Germany?
Of around 208 million tonnes of mineral construction waste in Germany in 2022, 90.4 per cent was recovered in an environmentally sound way, according to the 14th monitoring report of the initiative Kreislaufwirtschaft Bau. However, recycled building materials covered only 13.3 per cent of the demand for aggregates. Part of the recovery also consists of backfilling and landfill construction.
What is the difference between refurbishment and remanufacturing?
Refurbishment means cleaning, inspecting and repairing a used product without fundamentally changing it. Remanufacturing means dismantling the product, replacing wearing parts and reassembling it, often with technical improvements. In both cases, unlike recycling, the product's form is preserved.
How does the new Construction Products Regulation treat used construction products?
The Construction Products Regulation (EU) 2024/3110 explicitly covers used and remanufactured products. Under recital 34, products reused directly in the same construction works are not considered to be placed on the market again. Requirements or incentives are to apply to remanufactured products. The details depend on future legal acts and standards.
What can the construction industry expect from the EU Circular Economy Act?
According to EUWID, the European Commission intends to present the EU Circular Economy Act on 11 November 2026. A single market for secondary raw materials, uniform rules for end-of-waste status and extended producer responsibility are expected. How strongly construction products will be covered remains open until the draft is published.
Sources (7)
- German Circular Economy Act (KrWG), Section 6 waste hierarchy (German)
- German Environment Agency (UBA): construction waste (German)
- EUWID Recycling und Entsorgung: mineral construction waste 90 per cent recovered in 2022, but substitution potential exhausted (on the 14th monitoring report of the initiative Kreislaufwirtschaft Bau) (German)
- GlobalABC / UNEP: Global Status Report for Buildings and Construction 2024/2025, 17 March 2025
- Federal Environment Ministry: National Circular Economy Strategy, summary, as of November 2024 (German)
- Regulation (EU) 2024/3110 (Construction Products Regulation)
- EUWID Recycling und Entsorgung: EU Commission to present Circular Economy Act on 11 November, 1 October 2026 (German)
Rudy Winklhofer is Owner and Director R&D of capinori GmbH.
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