Among the sectors with a high level of responsibility in the fight against climate change, the European construction industry plays a crucial role: its activities consume half of the continent’s extracted materials and energy, and a third of its water and waste. European plans and actions to make construction greener are accumulating in this direction: the European Green Deal, the Circular Economy Action Plan, the Renovation Wave, etc. Here is an overview of the current situation.
The European Union – first steps towards a circular economy
At the European level, numerous measures have been put in place to link the circular economy and the building sector. The Green Deal, voted in 2019, is the strategic direction launched by the European Commission with the aim of achieving carbon neutrality by 2050.
This set of initiatives gave rise to the Circular Economy Action Plan, enacted in 2022. This plan makes construction a priority target by extending the lifespan of buildings, improving traceability, promoting eco-design, and encouraging the reuse of materials. Reducing waste will only be possible with products that are easier to repair and recycle, designed by companies that are encouraged to take responsibility for their products throughout their life cycle. This plan also seeks to raise public awareness of the challenges of the circular economy, so that citizens can play an active role in this ecological transition.
In 2024, the EU-27 will step up their efforts by voting on the revision of the EPBD (Energy Performance of Buildings Directive). This legislation focuses on the energy performance of buildings and the sector’s ability to achieve carbon neutrality by 2050. To this end, the EPBD proposes to further advance the paradigm shift begun in previous editions with the introduction of life cycle assessment (LCA). By making this method mandatory for new buildings, the EPBD further redefines the framework for measuring a building’s environmental impact, moving away from measures that silo performance in terms of operation on the one hand and construction on the other.
A crucial new tool for this method is the life-cycle Global Warming Potential (GWP) of new buildings. Expressed in kg CO2, this indicator incorporates the manufacture of materials, transport, construction, operation (heating and electricity), and end of life (demolition, recycling, etc.) of the building, and its calculation will be mandatory for all new buildings by 2030.
Finally, the CSRD directive, in force since 2024, requires companies (especially large ones) to report on their circular practices: reuse, recycling, resource management, etc. This new standard applies de facto to large construction companies, which are being pushed to redouble their efforts in terms of the circular economy.
Driving innovations in this transition
The European Union has laid the groundwork for integrating circular practices into the construction industry. The vast majority of European countries have subsequently developed their own national plans in this area in recent years: la loi de Transition énergétique pour la croissance verte in France, España Circular 2030 in Spain, the Circular Economy Package Policy in the United Kingdom, etc. These same countries share many tools specific to this field.
A widely adopted principle: producer responsibility
A flagship initiative launched by France and adopted by Germany and other northern countries is Extended Producer Responsibility (EPR). This principle requires manufacturers, distributors, and importers to take responsibility for the end-of-life management of their products. Applied to the building sector, EPR becomes, in the French case, REPB PMCB, which requires producers to finance or organize waste management.
Ultimately, it is an application of the “polluter pays” principle. This principle requires those who cause pollution to bear the costs. In concrete terms, those who place products on the market must join an eco-organization approved by the public authorities and transfer this obligation to it in exchange for a financial contribution (the eco-contribution), the amount of which depends on the quantity of products placed on the market. The eco-organization then takes care of managing the waste generated by their products at the end of their life. Although there is still some criticism of the effectiveness of this measure, it encourages manufacturers to better integrate sustainability into their product vision.
PEMW diagnosis: a shared tool
The French regulatory framework stands out once again as a pioneer in the implementation of the Products, Equipment, Materials, and Waste (PEMW audit) assessment. Belgium, the Netherlands, Germany, and other European countries are also seeking to impose this system, which makes it possible to inventory and characterize the materials, products, equipment, and waste at a site, indicate recommendations for their removal and management, and determine their recovery and possible recycling. It enables producers to limit their environmental impact while optimizing their deconstruction costs.
Digitalization, a crucial accelerator
Digitization also plays a major role in these developments. More than just facilitating coordination between stakeholders, digitization makes it easier to identify, sort, and reuse materials from construction sites by connecting supply and demand across regions. BIM (Building Information Modeling) methodology is currently the most advanced application of this technology.

It is based on the creation and management of digital representations of a building’s physical and functional characteristics – this technology enables better waste traceability and resource optimization. While Scandinavian countries and the United Kingdom already benefit from a highly structured framework, France, Germany, and Spain have been encouraging its use in recent years. These three countries have launched national plans to promote its introduction in public procurement and have published technical guides to facilitate its implementation.
Between the arrival of new technologies and stimulating policies, the circular economy is attempting to integrate itself into the building sector as quickly as necessary. The European regulatory framework imposed over the last six years has pushed the 27 member states to extend circular practices to the planning, design, and construction phases, which had previously been neglected. The latest innovations are attempting to overcome this problem, but technical difficulties remain, explaining some setbacks. However, the launch or updating of national plans in this area confirms their strong commitment to linking the circular economy and construction in the near future.