The construction industry is at a turning point, embracing the principles of the circular economy to transform how resources are utilized and waste is managed. This shift is not only reducing environmental impact but also unlocking significant economic opportunities, both globally and in Romania.
The Urgent Need for Circularity in Construction
Globally, the construction sector consumes 42 billion tons of materials annually to build infrastructure and generates 1-2 billion tons of waste, accounting for nearly one-third of total global waste. At the same time, buildings are responsible for 40% of global CO₂ emissions, making the industry a major contributor to climate change. According to a World Economic Forum and McKinsey & Company report, circular strategies in construction could reduce embodied carbon emissions by up to 75%, preventing nearly 4 gigatons of CO₂ emissions by 2050. (WEF Report) At the European level, the circular economy has become a key priority. The EU Green Deal aims to achieve climate neutrality by 2050, with circular construction being one of the primary focus areas. According to the European Commission, 50% of extracted raw materials in Europe are used in construction, and 30% of total waste generated comes from this sector. Circular practices such as material reuse, modular construction, and energy-efficient buildings can drastically reduce waste and optimize resource use.
Romania’s Progress Towards Circular Construction
In Romania, the construction sector accounts for 45% of national energy consumption, highlighting the need for more sustainable practices. However, circular construction is still in its early stages. A study by the Romanian Competition Council emphasizes the competitive advantages of circular business models in construction, stating that companies adopting these principles gain long-term sustainability benefits.
Moreover, Romania has started implementing circular economy strategies under the National Circular Economy Strategy, which promotes the reuse of building materials, better waste management, and energy-efficient designs. Despite these efforts, only 5% of construction and demolition waste is currently recycled in Romania, compared to 90% in countries like the Netherlands and Denmark.
Economic Potential: From Waste to Profit
The transition to a circular economy in construction is not just an environmental necessity—it is an economic opportunity. Adopting circular practices in construction could generate up to $700 billion in global savings annually by 2030. Additionally, the modular construction sector, which supports circularity by allowing components to be reused, is expected to grow by 6.5% annually, with potential cost savings of 20-50% for developers.
Circular construction also creates new jobs and business opportunities. From material recovery and recycling to innovative design solutions, companies integrating circular principles will have a competitive advantage. A World Economic Forum study found that circular economy initiatives in construction could generate millions of new jobs worldwide, while improving the resilience and efficiency of the built environment.
At Brisk Group, we recognize that circularity is the future of construction. Sustainability is at the core of our project management strategies, and we are actively implementing resource efficiency measures, waste reduction initiatives, and material reuse strategies to minimize environmental impact. Our goal is to help developers, investors, and stakeholders transition toward a circular economy, aligning with both EU sustainability goals and global best practices.
Transitioning to a circular economy in construction requires a fundamental rethinking of design processes, supply chains, and business models. Collaboration among architects, engineers, policymakers, and developers is essential to overcoming barriers and driving innovation. Governments and companies must also invest in digital technologies, such as BIM (Building Information Modeling) and AI, to track and optimize material flows.
The construction industry can no longer afford to operate under a take-make-dispose model. The future belongs to companies that see waste as a resource and adopt circular business models. At Brisk Group, we are proud to be at the forefront of this transition, demonstrating that sustainable construction is not just a vision—it is a business advantage. By embracing circular economy principles, we are helping shape a greener, more resilient built environment.
Sources:
World Economic Forum Report on Circular Economy in Construction
https://www.weforum.org/stories/2024/01/circular-economy-how-lighthouses-in-the-built-environment-can-drive-value/
McKinsey Report on Modular Construction and Circularity
https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/modular-construction-from-projects-to-products
World Economic Forum Study on Circular Economy Business Opportunities
https://www.weforum.org/stories/2022/05/why-the-circular-economy-is-the-business-opportunity-of-our-time/
European Commission Report on Circular Economy in Construction
https://ec.europa.eu/environment/circular-economy/
Romanian Government – National Circular Economy Strategy
https://sgg.gov.ro/1/wp-content/uploads/2022/08/Strategia-economie-circulara_18.08.2022.pdf
Romanian Competition Council Report on Circular Economy in Construction
https://www.consiliulconcurentei.ro/wp-content/uploads/2024/10/studiuEC_site_07oct.pdf
Roland Berger Report on Circular Economy in Construction
https://www.rolandberger.com/en/Insights/Publications/It%E2%80%99s-time-for-construction-to-embrace-the-circular-economy.html
