Redefining Construction

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The Nordic construction and real estate sectors play a central role in the region’s economy and employment. However, they are also significant contributors to emissions and environmental challenges, including resource depletion, pollution, and biodiversity loss. Addressing these issues is not merely a technical or industry-specific challenge but a societal question requiring collaborative action across public and private sectors.

Addressing these issues is not merely a technical or industry-specific challenge but a societal question requiring collaborative action across public and private sectors.

For the industry to be able to operate withing planetary boundaries a cultural and societal paradigm shift is required: Replacing a growth paradigm with a sufficiency paradigm.

In driving this shift, small and medium-sized enterprises (SMEs), which make up 99% of the European construction sector and employ 83% of its workforce, can play a central role. The small, innovative companies are at the forefront of efforts to reintroduce sustainable, place-based materials and circular practices often face systemic barriers, including limited market access, restrictive regulations, and financial constraints, that hinder broader adoption of sustainable practices.

This report identifies key framework conditions and actionable policy recommendations to support the transition to sustainable construction, focusing on three critical areas:

1. Promoting Nature-Based, Circular, and Local Materials: Encouraging the adoption of renewable, sustainable materials tailored to local contexts to reduce environmental impact.

2. Advancing Gentle Demolition for Reuse: Emphasizing techniques that prioritize material reuse, fostering a circular economy.

3. Facilitating Redistribution of Used Materials: Establishing systems to reuse surplus resources, extending material lifecycles and enhancing resource efficiency.

Through insights gathered from diverse stakeholders—including SMEs, industry leaders, and sustainability advocates—this report underscores the readiness of sustainable solutions for scaling. It highlights the role of ambitious legislation as both a barrier and an enabler of transformative change. Policymakers must create conditions that support innovation while addressing systemic obstacles that disproportionately affect smaller enterprises.

The findings and recommendations in this report aim to guide Nordic leaders and decisionmakers within planning and housing in shaping a regulatory landscape that accelerates the adoption of sustainable construction practices, aligning with the EU’s ambition for a climate-neutral economy by 2050.