The circular economy: challenges and opportunities

What is the circular economy and what are its origins?

The circular economy is an economic model designed to minimize waste and maximize the efficient use of resources. Unlike the traditional linear model of "extract, produce, dispose", this approach proposes a regenerative cycle in which materials and products are reused, recycled or refurbished. Its roots lie in the 1960s and 1970s, with influential figures such as Kenneth Boulding , who in 1966 introduced the concept of "cyclical economy" in his essay "The Economics of the Coming Spaceship Earth". Also Walter Stahel , a Swiss economist, was a pioneer by developing the term "loop economy", focused on extending the life of products and minimizing waste.

Inspired by nature, where everything is transformed and nothing is wasted, the circular economy has also incorporated principles of permaculture , regenerative design and biomimicry . These concepts have evolved into practical strategies promoted by public policies and international agreements.

Why is the circular economy important in the construction sector?

The construction sector is responsible for more than 35% of waste generated in Europe and around 40% of total energy consumption. This industry also produces a significant amount of CO2 emissions, making it a critical point for the transition towards a more sustainable model.

The circular economy in construction can address these issues by:

• Reuse of materials : Demolition debris and waste can be transformed into secondary materials for new projects, such as recycled aggregates or structural components.

• Design for disassembly : Constructing buildings that can be disassembled rather than demolished allows valuable elements to be recovered at the end of their life cycle.

• Use of recycled materials : Incorporating materials such as glass, steel and recycled concrete reduces the need to extract virgin resources.

• Energy efficiency : Designing buildings with low energy consumption and high standards of thermal insulation reduces the environmental impact over their useful life.

Furthermore, by applying circular economy principles, buildings can become banks of reusable materials, promoting a more efficient resource economy.

What initiatives is the European Union promoting to foster the circular economy?

The European Union has taken a proactive approach to promoting the circular economy, especially in energy-intensive sectors such as construction. Some key initiatives are:

1. Circular Economy Action Plan (CEAP) : Launched in 2020, this plan sets out specific measures for priority sectors, including construction. It aims to achieve a climate-neutral and resource-efficient economy by 2050.

2. Construction and Demolition Waste Directive : This directive obliges Member States to ensure that at least 70% of construction waste is recycled or recovered. In Spain, it has been transposed through Royal Decree 105/2008 , which regulates the production and management of construction and demolition waste.

3. Renovation Wave Strategy : With the aim of renovating 35 million buildings by 2030, this strategy promotes the use of recycled materials and energy efficiency solutions. In Spain, this strategy is aligned with the National Integrated Energy and Climate Plan (PNIEC) 2021-2030 .

4. Funding and incentives : Programmes such as Horizon Europe fund innovative projects that promote circular practices in construction and other industries.

These policies not only seek to reduce environmental impact, but also to stimulate innovation and competitiveness in the European market.

What advantages does construction ceramics offer in this economic model?

Ceramics are a key material in the construction sector due to their unique properties that align perfectly with the principles of the circular economy. Some of their advantages are:

1. Durability and longevity : Ceramic parts are extremely resistant to wear, weather conditions and chemical agents, which prolongs their life and reduces the need for replacement.

2. Reuse and recycling : Waste generated during ceramic production, such as clay fragments and glazes, is reincorporated into the production process. In addition, discarded ceramic pieces can be crushed and used as aggregates in new constructions.

3. Energy efficiency : Modern ceramic products offer excellent thermal insulation properties, which contributes to reducing energy consumption in buildings.

4. Technological innovation : The ceramic industry has adopted advanced technologies such as digital printing, which allows for the manufacture of products with a lower environmental impact. In addition, there are ceramics with photocatalytic properties that purify the air and reduce pollution.

5. Environmental certifications : Many ceramic companies have obtained certifications such as LEED , BREEAM or ISO 14001 , which endorse their commitment to sustainability.

Budgetary assessment of the implementation of the circular economy in construction until 2050

Implementing a circular economy model in the construction sector by 2050 represents a significant investment, but with great economic and environmental benefits. According to the Ellen MacArthur Foundation report , potential cost savings could reach €630 billion annually in Europe. In addition, data from the European Environment Agency indicates that adapting circular practices could reduce up to 60% of carbon emissions related to construction materials.

Funding for this transformation will come from:

1. Public investments : The European Union has allocated more than 150 billion euros to programmes such as Horizon Europe to promote sustainable practices in construction and other key sectors.

2. Private investments : Companies such as Skanska , Vinci and LafargeHolcim are investing in low-carbon concrete and recycling solutions for infrastructure, with green investments estimated to grow by 12% annually.

3. Tax incentives : Countries such as Germany and the Netherlands are offering tax deductions of up to 30% on sustainable renovation projects.

Although the initial outlay may seem high, the benefits far outweigh the costs, not only in terms of economic savings, but also because of the positive impact on the environment and job creation in the recycling and waste management sectors.

The challenge of denialist tendencies

The implementation of circular economy policies in the construction sector varies significantly between countries in the European Union. Although there is no specific graph illustrating progress by country, there are reports and studies that analyse the current status and progress in this area.

For example, the European Court of Auditors' Special Report 17/2023 entitled " Circular economy: Member States' slow transition towards a circular economy " assesses how different Member States have progressed in implementing the circular economy, including in the construction sector. This report highlights that, although progress has been made, the transition has been slower than expected and varies between countries.

Furthermore, in the Spanish context, the Second Circular Economy Action Plan 2024-2026 establishes specific measures to consolidate progress towards a circular economy in key sectors, including construction. This plan aims to reduce the consumption of materials and the generation of waste, increasing reuse and minimising greenhouse gas emissions.

Despite progress, recent denialist tendencies are hindering the full implementation of the circular economy. These stances not only slow down regulatory development, but also generate misinformation and scepticism about its benefits.

However, individual and collective action can make a difference. The circular economy is not only essential for environmental sustainability, but also for the economic growth of countries that are net exporters of construction materials, which depend on strong intra-EU markets.

What steps should companies take to become certified under circular economy standards?

1. Initial diagnosis : Carry out an analysis of the flows of materials and waste in the company.

2. Goal setting : Set clear goals in terms of waste reduction, use of recycled materials and energy efficiency.

3. Adoption of green technologies : Implement technologies that allow the reuse and recycling of materials.

4. Environmental certifications : Obtain standards such as LEED , BREEAM or ISO 14001 to demonstrate commitment to sustainability.

5. Education and training : Train employees in circular economy and sustainability practices.

6. Collaboration with the public and private sectors : Participate in financing programs and collaborative projects.

The circular economy is more than a necessary change; it is an opportunity to transform challenges into competitive advantages. Act now and join the movement towards a more sustainable future!