Construction and buildings
In 2020, 584.6 million tonnes of aggregates were produced for the construction industry in Germany, 485 million tonnes of which were derived from primary mineral raw materials. This figure is rising and has significant environmental impacts. Although this demand is offset somewhat by around 220 million tonnes of construction waste, which are generated annually and which could serve as a potential source of raw materials, only 13 percent (77 million tonnes) of the aggregates used each year currently come from recycled construction materials. In terms of total construction waste, 35 percent is used as recycled construction materials. Excavated soil accounts for the largest share of construction waste, exceeding 129 million tonnes per year, with 75 percent being backfilled without prior processing or used in landfills as substitute construction material. A further 14 percent is disposed of in landfills. Compliant and quality-controlled materials for road surface construction make up only a small proportion of commercially available recycled construction materials. The potential to reintegrate secondary raw materials into the economic cycle is not being fully exploited, while landfill capacities are decreasing, disposal costs are rising and the need for action is increasing.
Key barriers to circularity and resource efficiency in the construction and buildings sector include:
- A general lack of information on the materials and substances used in construction.
- Since awareness of reuse, ease of dismantling and recycling was very low at time of construction, it is often not possible or very costly to recover unmixed material flows from secondary raw materials.
- Reviews do not prioritise the preservation of buildings or the potential for continued use of buildings and infrastructure.
- The construction or maintenance of structures and buildings was partly carried out using materials that are now classified as pollutants. These must be reliably removed from the material cycle in accordance with current technical standards.
Despite the fact that resource-efficient and low-waste products are to be given preference under the EU Construction Products Regulation and the Circular Economy Act (KrWG), tenders by private and public clients do not place sufficient emphasis on the use of secondary raw materials, due to uncertainties regarding the quality of secondary materials and concerns about the legal certainty of procurement decisions.
- EU Construction Products Regulation – revision: The revision of this regulation includes requirements for standardisation processes to harmonise construction products. For the first time, the European Commission is to be authorised to set binding environmental requirements for construction products at EU level. Additionally, manufacturers will be required to include sustainability indicators from EN 15804 +A2 regarding environmental and climate impacts in the declarations of performance for their construction products. The regulation also provides for future harmonisation of used construction products.
- Standard specification manual: The Federal Ministry for Housing, Urban Development and Building (BMWSB), together with the Deutscher Vergabe- und Vertragsausschuss für Bauleistungen (German procurement and contract committee for construction services), will further develop the standard specification manual (Standardleistungsbuch) to ensure greater consideration of reused building components and recycled construction materials in public-sector construction projects.
- End-of-waste ordinance: A new end-of-waste ordinance is intended to increase the use of secondary raw materials by defining the conditions under which as many mineral substitute construction materials as possible cease to be classified as waste. Reclassifying these materials as products in this way will improve marketability and support broader use of substitute construction materials, for example in building construction. The protection of human health and the environment must be ensured in this process.
- Integration of funding components in federal funding programmes: The BMWK Federal Funding for Efficient Buildings (BEG) programme supports the circular economy through additional funding for buildings that meet the sustainability standard. The BMWSB’s new construction funding already incorporates QNG Sustainable Building Certification. Further additions are planned to integrate circular construction methods into the QNG.
- Timber construction initiative: The timber construction initiative, adopted by the Federal Cabinet under the lead responsibility of the BMWSB and the Federal Ministry of Food and Agriculture (BMEL), aims to promote construction with timber and other renewable raw materials as an important contribution to climate-friendly and resource-efficient construction.
- Lightweighting Strategy: Adopted on 26 July 2023, the Federal Government’s Lightweighting Strategy highlights the importance of lightweight construction as a transformative technology. Developed under the lead responsibility of the BMWK, the strategy emphasises the significant potential of lightweight construction in reducing raw material use and greenhouse gas emissions, including in the construction sector.
- Monitoring of the Secondary Building Materials Ordinance: The Federal Government is required under the Mantelverordnung (a legislative package on secondary construction materials and related areas) to review the impact of regulations on the recovery of mineral waste by 1 August 2025 and to make any necessary amendments. The German Environment Agency (UBA) has therefore launched a research project to conduct scientific monitoring of the use and location of mineral secondary construction materials.
- Urban mining strategy: Through the German Resource Efficiency Programme (ProgRess III), the Federal Government has committed to developing an urban mining strategy on how to explore, access and extract materials stored in anthropogenic deposits and prepare recovered secondary raw materials for reuse. The strategy will outline future resource availability and the necessary frameworks, instruments and measures for ensuring the supply of quality-assured secondary raw materials. Twelve action areas have been identified as priorities, including mineral construction materials for buildings, roads and bridges.
- Round table on future-oriented construction: In 2023, the BMWSB merged various existing dialogue formats into a round table on Future-Oriented Construction, comprising stakeholders from the construction and real estate sectors, the scientific community, public bodies at the federal, Länder and municipal levels, and environmental and social organisations. This forum facilitates experience sharing on resource-efficient construction, promotes technical innovation and advances circular economy practices. The goal is to lower raw material consumption and maximise resource conservation in order to reduce greenhouse gas emissions.
- Alliance for Affordable Housing: In October 2022, the Affordable Housing Alliance, consisting of representatives from the Federal Government, the Länder, local government associations, the housing and construction sectors, and civil society, presented a comprehensive package of measures for a construction investment and innovation campaign to create more affordable housing. The package contains a large number of measures to support the reuse of existing buildings, increase recycling rates in residential construction and expand the use of recycled or reusable building products. Specific initiatives include: the development of a guideline with an evaluation framework for decisions on demolition or replacement new build in order to assess greenhouse gas savings, energy efficiency and resource efficiency over the life cycle; the planned funding programmes Jung kauft Alt (Young Buys Old) and Gewerbe zu Wohnen (Commercial to Residential); and the vacant property activation strategy. All of these measures aim to reuse underutilised buildings and parts of buildings.
- The Dialogue Platform on Recycled Raw Materials: The German Mineral Resources Agency (DERA) has developed options for increasing the share of recycled raw materials, including construction materials, gypsum and industrial residues and by-products. Some proposals from the final report have been incorporated into the measures in Section 4.8.4.
- EU Energy Performance of Buildings Directive (EPBD): The 2024 revision of the EU EPBD introduces, for the first time, requirements for calculating and reporting the cumulative life cycle emissions (life-cycle global warming potential or GWP) of all new buildings from 2028 (>1,000m²) and from 2030 (<1,000m²). By 2027, national roadmaps must be developed detailing the introduction (from 2030) of maximum limit values and targets for greenhouse gas emissions, with a progressive downward trend. The aim is to significantly reduce both embodied and operational emissions over a building’s life cycle.
- The German Federal Government's Guidelines for Baukultur: The Federal Government’s Guidelines for Baukultur, based on the Davos Declaration Towards a high-quality Baukultur for Europe, aim to promote a high-quality Baukultur in its own areas of planning and construction responsibility and to reinforce its role as an independent participant, promoter and the largest public-sector client in Baukultur. The guidelines set out objectives, action areas and measures for well-designed, climate-neutral and climate-adaptive built environments, with a particular focus on preserving and repurposing existing buildings and protecting resources through the circular use of construction materials.
Priority is given to the conversion, expansion and continued use of buildings and structures. Where necessary, this is supplemented by new builds designed and constructed in line with circular economy principles and climate-friendly standards. From 2030 onwards, the building stock is constructed in a climate-friendly, circular and resource-efficient manner and digitally documented. Embodied emissions arising from the production and maintenance phases are reduced as far as possible. The flexible conversion and continued use of buildings enables housing options suited to different life stages as well as optimal adaptation to changing requirements for office and commercial spaces. The trend of a steady increase in soil sealing has been reversed. Resource-efficient construction methods are standard in building construction and civil engineering, including the use of renewable raw materials.
Once a building reaches the end of its service life and dismantling is necessary, structures are repurposed in line with a dismantling plan. The range extends from the reuse of buildings or dismantled components, to mechanical or raw material recovery and thermal recovery. The goal is to keep resources in technical cycles for as long as possible. The anthropogenic stock is an important source of raw materials for the construction industry. Whenever possible, building components and materials are reused or processed into recycled materials for construction projects. To this end, they are removed unmixed from buildings and structures during selective dismantling or renovation, and prepared for reuse as functional components and materials for the construction materials industry.
The overarching vision of slowing resource flows and reducing resource consumption in the construction sector can be broken down into the following targets for 2045:
- Conserving primary raw materials by increasing the use of secondary raw materials, in other words, materials generated as by-products of other industrial processes (section 4 of the Circular Economy Act, KrWG), such as slag, or other mineral substitute construction materials obtained from dismantled buildings and used as recycled construction materials.
- Prioritising the conversion and continued use of buildings: The continued use and conversion of existing buildings generally require fewer resources than new construction, which must always be carefully considered. The potential for creating residential and commercial spaces within the existing building stock is maximised through densification, vertical extensions, renovation, conversion and flexible use concepts, supplemented by urban development measures. The regulatory requirements for energy-efficient building renovations have not been further tightened to support the preservation of the existing stock. At federal level, the life cycle approach is consistently implemented in legislation.
- Circular and low-waste planning of buildings, as well as reuse of building components: Buildings are designed to facilitate later changes in use and conversions in a way that is as straightforward, climate-compatible and low-waste as possible. A fundamental planning principle is construction that prioritises flexibility and the life cycle while focusing on durability and sustainability in design and material selection. The adaptability of building services (heating, cooling, electrical and data infrastructure) to future challenges over a building’s life cycle is factored in. Information related to buildings, including dismantling and reuse, is recorded in the digital resource passport for buildings (Gebäuderessourcenpass, GRP). Liability and warranty issues concerning the reuse of building components are clarified.
- Utilising the material properties of resources through recycling measures: Recycling takes precedence over backfilling. The targeted inclusion of construction materials with recycled content in tenders for construction services and corresponding requirements for planning services, along with progressively lower maximum life cycle emissions for new buildings, help increase the acceptance, demand for and availability of resource-efficient construction materials. Urban planning also considers the need for sites where materials can be processed close to where waste is generated.
Based on the vision of a comprehensive circular economy for 2045 presented in Section 1.3, and complementing the guiding principle and overarching goals formulated in Section 2, the following additional goals apply to this action area:
- The guiding principle set out in Section 2 to reduce primary raw material consumption will be supported by pursuing the indicative target of a significant reduction in the material footprint (raw material consumption, RMC) for the major material flows of mineral construction raw materials by 2045, compared with 2020.
- The use of secondary raw materials in in public construction projects will be increased. A roadmap for implementation will be developed by a specialised body involving relevant stakeholders. To support this, the Federal Government will further develop the Assessment System for Sustainable Building (BNB) and make it available to public authorities. The BNB will define technology-open and material-neutral requirements regarding environmental impacts and resource consumption based on a life cycle perspective, thereby encouraging the preferential use of secondary raw materials.
- Review the further development of minimum targets for the use of secondary raw materials under the QNG Sustainable Building Certification for non-residential buildings, as well as developing a roadmap for the QNG.
- All proposed measures are subject to the condition that their implementation must not lead to increased construction costs.
The Alliance for Transformation, led by the Federal Chancellor, has assigned particular importance to the priority area “Circularity in construction, building materials and buildings”.
To achieve these goals of the NCES, the following measures, among others, are required at the national or EU level.
Prioritising the preservation of existing buildings over new construction
Establishing the following frameworks:
- Amendment of the statutory fee schedule for architects and engineers (Honorarordnung für Architekten und Ingenieure, HOAI): The scope of services will be further developed and fees reviewed. This includes optimising fee regulations for services related to existing buildings to enable appropriate and more practical agreements.
- More data is needed to make better use of the building stock. Currently, there is no standardised national building stock database. However, given its importance for the circular economy and a future urban mining strategy, options for its development must be examined.
Continuing discussions with the Länder on building stock preservation and coordinating possible additional measures and instruments through the relevant Länder ministerial conferences, namely the Conference of Environment Ministers (Umweltministerkonferenz, UMK) and the Conference of Building Ministers (Bauministerkonferenz, BMK). The aim is to build on the measures already agreed in the Affordable Housing Alliance and identify further measures to achieve the following:
- Assess preservation of existing buildings before replacement new build: develop a guideline with an evaluation framework for decisions on demolition or replacement new build. This will factor in greenhouse gas savings, energy and resource efficiency over the life cycle, and economic proportionality.
- Facilitation of building expansions: Refurbishment projects require adapted regulations. Rules for new buildings must not automatically apply equally to extensions (for example, regarding spacing requirements, fire protection and soundproofing). Existing proposals in this area will be further developed into a catalogue of recognised standardised compensatory measures to reduce the need for individual case approvals, such as in fire protection.
Promoting buildings that can be dismantled
Establishing the following frameworks:
- Mandatory introduction of a digital building resource passport (DGRP) to systematically document the materials and products used, their components and installation methods: This is intended to support resource management and circularity. It will be based on the available environmental information on the building and the materials and products used in its construction. The aim of the DGRP is to aggregate all relevant life cycle data, assess the consumption of primary and secondary raw materials, estimate urban mining potential, and enable the targeted management and analysis of building material flows. The Federal Government has already carried out extensive preparatory work. An initial version of the DGRP is set to be introduced in 2025 as part of the QNG Sustainable Building Certification, with mandatory implementation for new building projects planned thereafter.
- To ensure the unmixed collection of construction materials, building designs that facilitate selective dismantling must be chosen. This includes modular construction methods, detachable connections, and avoiding non-circular material composites and pollutants. This will first be addressed through existing funding instruments and certification systems (QNG and BNB).
- Further developing raw material indicators to improve measurability: The Zukunft Bau (Construction of the Future) research project has explored the development of specific indicators for better quantification of resource conservation in construction. At the level of building structures, the indicators RMI (raw material input) and TMR (total material requirement) may be incorporated as material footprint metrics into life cycle assessments in the future.
Optimising the separate collection of construction waste
- For public buildings, the introduction of a requirement to provide a dismantling feasability assessment and a pollutant management plan for new builds, refurbishments and extensions is being examined. Dismanling (or partial dismantling) should already be factored in and the project’s circularity ensured in the planning stages of a new build, a conversion or an expansion of an existing structure. The dismantling feasibility assessment and pollutant management plan should form the basis for implementing construction projects.
In engagements with the Länder, the Federal Government will advocate the following measures to optimise the separate collection of construction waste via the relevant ministerial conferences (UMK and BMK):
- Introduction of a requirement for on-site inspection of building components prior to demolition.
- Compilation of an inventory of reusable or recoverable building components and materials.
- Optimisation of building component reuse and recycling.
- Improvement of conditions for the reuse of building components: Rules governing the safe use of repurposed components and construction products will be progressively expanded. The development of regional marketplaces for building components will be supported.
- Expansion of recycling infrastructure: To enable comprehensive construction waste recycling and reduce transport distances, regional secondary raw material centres, including at landfill sites, need to be established.
Creating favourable conditions for regional marketplaces for construction materials and building components.
Promoting the use of secondary raw materials
The following measures will be taken in Federal Government procurement:
- Reviewing the introduction of binding guidelines and criteria for circularity and, in addition, outlining circularity and resource conservation criteria for the procurement of construction services by public authorities under the Assessment System for Sustainable Building (BNB): methods for assessing circularity and resource conservation in public procurement will also be made available to Länder and municipalities. Publicly procured construction services will, in accordance with budgetary principles of cost-effectiveness and efficiency, consider resource conservation, longevity and repurposing/conversion from the outset in needs assessments and incorporate these into planning. This may include binding requirements for selective dismantling capability, repairability, reusability and recyclability of buildings, building components and construction materials. To this end, the Federal Government will update the BNB. The BNB will define technology-open and material-neutral requirements regarding environmental impacts and resource consumption based on a life cycle perspective, thereby encouraging the use of secondary raw materials. Through a circularity assessment, the BNB will incentivise the construction of circular buildings.
- The German Environment Agency (UBA) will develop a practical implementation plan for considering a shadow price for CO₂, which goes beyond the provision in section 13(1), third sentence, of the Federal Climate Action Act (KSG), as well as potentially other environmental impacts in procurement decisions. The shadow price will be used to calculate external costs hypothetically, making them transparent for bid evaluations. It may also facilitate the practical implementation of the requirement to take into account section 13(2) of the Federal Climate Action Act (KSG). Retrofitting and resource-efficient construction methods and materials could result in a lower shadow price. The methodology to be developed by the German Environment Agency (UBA) will also be discussed within the planned working group on public procurement, which will include representatives from the Länder and local government associations, and promoted for widespread adoption.
- Federal Government engagement with companies in the construction materials sector to advance the following measures:
- In collaboration with businesses and industry associations, developing the necessary conditions for a sector-wide solution to increase the substitution rate of clinker with secondary raw materials and industrial by-products in cement production.
- In further discussions with businesses and associations, exploring how to increase the supply of recycled aggregates through higher-quality recovery of construction and excavation waste, while avoiding the risk of replacing mineral secondary construction materials with primary raw materials.
- Supporting digital platforms for the registration and assessment of used building components; a corresponding implementation concept will be developed jointly with the construction industry.
Reducing landfilled mineral waste
- Reviewing a landfill ban on recoverable waste: The German Environment Agency (UBA) will commission a research project to support the implementation of the Landfill Ordinance (Deponieverordnung) before 2030 in relation to a ban on landfilling recoverable waste and to assess its practical feasibility. An evaluation will also be conducted to determine whether implementation would lead to a reduction in landfilled recoverable waste in the construction sector in line with NCES objectives.
- If this is not the case, the introduction of a landfill levy for recoverable mineral construction materials will be considered.
Research
Circularity and the reuse and conservation of resources are a key focus of the ministerial research component under the BMWSB Zukunft Bau programme. Focal areas of the respective programmes include:
Zukunft Bau ministerial research
- Transformation of the construction industry.- Decarbonisation of the building sector.
Zukunft Bau model projects
- Reducing greenhouse gas emissions and curbing resource consumption and land take.
- Planned federal research centre/LAB – Living Art of Building
-Climate-neutral and climate-adapted building stock.
- Future-proof materials and renewable raw materials over the life cycle.
- Resource-efficient and circular construction.