Despite campaigns to promote recycling, up to 90% of all materials in Europe are non-renewable! How can we reduce their environmental impact?
The so-called circularity gap, the percentage of non-renewable resources remaining outside the closed recycling cycle, is 92.8% worldwide. At the same time, we consume 1.6 times more resources than the planet’s regenerative capacity allows. This is according to a study published by ThinkCo in collaboration with partners including Skanska, JW+A and Revive. The vast majority of buildings in the European Union do not meet the criteria for sustainable construction, collectively accounting for almost 40% of all energy consumption. The answer for sustainable development is the circular economy. In the Czech Republic, this includes Skanska’s Mercury project in Prague’s Holešovice. Demolition work is currently being carried out there according to the principles of the circular economy.
A new report, published by ThinkCo in collaboration with Skanska, JW+A, Revive, System 3E, Syrena Real Estate and Torus, presents the key benefits of the circular economy for the real estate sector. The world currently produces and consumes goods in a linear fashion: we extract raw materials, make products from them, and then sell and use them until we throw most of them away. The goal of the closed-loop economy, also known as the circular economy (CE), is to preserve the value of products, components and materials for as long as possible, reducing waste and pollution. The Mercury project is currently the first flagship of the circular economy in Czech real estate development.
Globally, the construction industry is responsible for 35% of total energy consumption, 38% of energy-related CO2 emissions and 50% of natural resource consumption. In the EU alone, construction and demolition debris accounts for approximately 30% of all waste. This makes real estate one of the most important areas of the circular economy. For the same reason, it is also so extremely important to give products a new lease of life. An example of this approach is Skanska’s Mercury project in Prague’s Holešovice district, which will create modern office space.
“The Mercury project is particularly significant because it is the first investment of this scale in a development project in the Czech Republic that is being implemented in accordance with the principles of the circular economy,” says Eva Nykodymová, Health, Safety and Sustainability Manager for Skanska’s Commercial Development Unit for Central and Eastern Europe. Mercury will replace the 1971 Mercury building, which no longer met current health, safety and environmental standards. The decision to demolish the original building was preceded by an in-depth analysis of its structure, materials and installed systems, which allowed for the reuse of many of its components.
According to ThinkCo’s research, approximately 25% of the materials in a traditional building can be reused and up to 70% can be recycled. The Mercury Project is targeting 80% recycling or reuse from approximately 14,000 demolition materials.
Sustainable development can be profitable
The introduction of a circular economy in Europe by 2030 could increase the continent’s GDP by an estimated 7%. However, increasing the circularity of the economy cannot be achieved without introducing radical changes in the real estate sector. Acting in line with CE principles can reduce greenhouse gas emissions over the entire life cycle of buildings by almost 60%. Just using steel structures that can be dismantled and reused can lead to 70% energy savings and an 80% reduction in greenhouse gas emissions over the life cycle of a building. However, reorienting the economy and the real estate sector towards circularity is a very long and complicated process. This is demonstrated by the Mercury project and its ongoing demolition. It has encountered complications such as incomplete construction documentation and material records, which required additional specialised testing, or problems with the mixed composition of some elements. For example, parts of the façade contained glass, but also steel, insulation materials and other components.
“I don’t believe that in the current state of our sector it is possible to ensure rapid demolition, taking into account the principles of the circular economy. This is a new process that we all have to learn. But it is essential if we are serious about protecting resources and the environment. That is why we at Skanska are pleased to be at the forefront of this effort,” explains Eva Nykodymová.
A new direction: the professionalisation of building renovation
The report also highlights a new shift in the field of building renovation and fit-out. It explains the three main strategies that will dominate the market in the coming years. The adaptation strategy consists in changing the function of a building to another, which involves transforming its structure and equipment. This may mean, for example, converting older or obsolete office buildings into apartments or transforming post-industrial buildings into shopping or cultural centres or office space. An expansive strategy is the expansion of a building’s use by thoughtfully adding new space, either next to, above or below the original structure. With a proactive strategy, the building continues to be used while preventive measures such as retrofitting, implementation of new technologies and targeted repairs of problematic areas are carried out to prevent the building from losing its functionality.
“Awareness of the importance of circular economy strategies in sustainable real estate development is essential. By focusing on their development, we not only open the door to growth and environmental responsibility, but also prepare ourselves for the challenge of ever-shrinking natural resources,” concludes Eva Nykodymová.
Photo: Skanska’s Mercury project in Prague’s Holešovice
