DOI: 10.3303/CET23107090
Paper Received: 02 June 2023; Revised: 27 August 2023; Accepted: 27 September 2023
Please cite this article as: Buruzs A., Kozma K., 2023, The Realization of a Circular Economy in the Construction Industry and Its Adaptation
to EU Standards in Hungary, Chemical Engineering Transactions, 107, 535-540 DOI:10.3303/CET23107090
CHEMICAL ENGINEERING TRANSACTIONS
VOL. 107, 2023
A publication of
The Italian Association
of Chemical Engineering
Online at www.cetjournal.it
Guest Editors: Petar S. Varbanov, Bohong Wang, Petro Kapustenko
Copyright © 2023, AIDIC Servizi S.r.l.
ISBN 979-12-81206-07-6; ISSN 2283-9216
The Realization of a Circular Economy in the Construction
Industry and Its Adaptation to EU Standards in Hungary
Adrienn Buruzs*, Katalin Kozma
Széchenyi István Univerity, Department of Applied Sustainability 9026 Győr, Egyetem tér 1.
buruzs@ga.sze.hu
Transforming the linear economy into a circular one in the construction sector is not an easy task. Such a radical
change entails a major transformation of the current production and consumption patterns, which in turn will
have a significant impact on the economy, the environment, and society. The European Commission sees great
potential in the recycling and reuse of construction and demolition waste (CDW) and has also emphasised the
importance of this waste stream in its directives on the circular economy. This paper first presents the concept
of CDW and its regulatory characteristics. It then introduces the types and sources of CDW. Third, based on an
analysis of the literature, the paper identifies the possible links between the CDW and the circular economy and
current trends and practices of recovery, reuse, and recovery. Finally, through the examples presented, it gives
an overview of the current situation and trends in Hungary and makes recommendations for future development
opportunities for the practitioners to help them adapt to recent changes. The options for doing this are important,
but the problems that may hinder this process also need to be examined. In this article, the author seeks to find
answers to this question.
1. Introduction
Chapter 2 The European Union pays special attention to the regulation of waste management. The reason for
this is that the role and importance of waste in economic life has greatly increased. Nowadays, one of the
defining issues within the field of environmental protection is the generation, reduction, and management of
waste. Most of the waste can become a significant source of energy and raw materials, the processing, reuse
and/or utilisation of which can reduce countries' dependence on raw material imports in the long term.
Chapter 3 The construction industry is extremely energy-intensive and generates a significant amount of waste.
At the international level, many research studies deal with the methods by which the dismantled raw material
can be placed economically and which raw materials can be incorporated with which processing method.
Researchers also investigate how it is possible to organise the used raw materials into a database during
planning and/or construction, which can help their subsequent recyclability (Boros et al., 2022).
Chapter 4 The objective of the present research topic is to point out to otherwise well-defined and consistent
legal and strategic provisions, requirements, and standards since these are not effectively implemented into
practical applications. The aim of the research is to answer the following research questions: what tendency can
be observed in the development of construction and demolition waste in Hungary in the current waste
management system - based on the waste statistics under investigation, and what problems can be identified
in the transmission of the practical achievement of strategic objectives.
2. Materials and Methods
Several valuable national and international studies, strategic documents and laws were identified, which focus
on construction and demolition waste (CDW) flow on country-level. The aim of this article is to provide a
comprehensive summary of the current understanding of the topic of the CDW. A further objective is to help the
interoperability between theory and practical application because, in many cases, the expectations regarding
the green economy are not reflected effectively on the practical and implementation side. The data used for the
research comes from secondary sources (information database of the Central Statistical Office). Data on the
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amount of construction and demolition waste was collected from aggregated waste data according to the
Hungarian waste groups.
3. Literature Review
Recently, researchers found it important to address the issue of the circular economy in the construction sector
and propose sustainable solutions where waste is reused to generate a by-product. Teran Mejica et al. (2023)
presented an idea for bricks made from glass residues as a sustainable alternative for construction and
architecture. The production of artisan bricks from recycled glass proved favourable and can be a complete
substitute for the coarse aggregate (gravel) used for the production of conventional bricks.
In another research, Bautista et al. (2023) presented an alternative of using two solid plastic wastes, determining
the use of polymeric synthesis made from recycled polypropylene (PP) and expanded polystyrene (EPS). The
research developed a new material using these two recycled raw materials and evaluated its physical-
mechanical properties.
3.1 EU Regulation
Based on information from the European Commission, in Europe, approximately 2.5×109 t/y of waste is
generated, of which at least 600 Mt of reusable and recyclable raw materials end up in landfills (European
Parliament, 2023). In the European Union, however, the utilisation level differs significantly from country to
country. All this shows that there is an opportunity for lower-performing member states to learn about and
implement the best practices used by those with the highest recycling rates.
Among the production wastes generated in Hungary, CDW accounts for one of the largest masses and, at the
same time, the largest volume. CDW contains many valuable materials, which can be collected and treated
separately to obtain important raw materials in a cost-effective manner, as well as to be used as a secondary
material source. The necessary possibilities for this are only solved to a very small extent in Hungary. The
Ministry of Innovation and Technology (2021) already draws attention to the fact that the preparation,
reprocessing, and utilisation of construction waste for road and other construction is not yet a widespread
solution in the country, and its current utilisation is estimated around 30-40 %. The Strategy describes that the
future use of bulk materials, secondary raw materials (such as inert materials) and waste in a greater proportion
may, in some cases, be a solution in the event of supply difficulties, naturally keeping in mind the appropriate
quality aspects.
3.2 New Directions
One of the possible political tools could be the introduction/application of ‘green public procurement’ in a larger
proportion. A procedure which ‘when applied, tenderers give preference to the procurement of those goods,
services and construction projects that have a lesser impact on the environment compared to other goods,
services and works of the same purpose’ (Public Procurement Authority – Sustainable Hungary Program, 2021).
The ‘Green Code’ is voluntary. It defines specific guidelines so that the aspects of environmental and economic
sustainability are applied as much as possible in public procurement and investments. In this way, those who
join voluntarily set a good example through their public procurement and can influence the attitude and
behaviour of other economic actors and society. The ‘Green Code’ designates the environmental protection
goals and areas to which special attention must be paid, including the circular economy approach. In addition
to the fact that the ‘Green Code’ provides assistance to economic companies, it also supports the creation of
new opportunities for the authorities in terms of eco-innovation, resource efficiency and green growth, mainly
by applying new public procurement criteria in calls and tenders. As it appeared in the Information note (5/2022),
a parliamentary report on the Office of the Hungarian Parliament (2022), 10 % of public procurements under the
national procedure were considered Office of the Hungarian Parliament (2022); investments were included in
the highest proportion, with 15 % in the construction sector.
Finally, it is worth mentioning the EU taxonomy regulation. The decree defines the range of economic activities
that can be said to be sustainable from an environmental protection point of view. One of the six environmental
goals set out in the decree, the transition to a circular economy as a criterion, is also of particular importance
for the CDW. The long-term goal of the decree is that in the future, the flow of capital will go towards sustainable
activities, thereby creating the possibility of long-term ‘green’ investments (Boros et al., 2022).
3.3 General Rules
The central element of the currently effective regulation is Directive 2008/98/EC on waste and the repeal of
certain directives, which defines the general rules for waste management. Article 11 of the directive states that
the preparation for reuse, reprocessing and other material utilisation of non-hazardous CDW must be increased
to a minimum of 70 % by mass. Despite the existence of regulators, the achievement of the target value was
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not achieved at the expected pace. The reason for this is seen primarily in the mistrust experienced in terms of
quality and health risks towards materials produced by the CDW (Kozma, 2022). In many cases, there is no
technological possibility and/or available interface that would help the feasibility of selective collection.
Furthermore, the dense location of municipal landfills makes it easier to transport the waste generated in the
construction-demolition area to a landfill close to the area, thereby achieving significant cost savings. The Official
Journal of the European Union (2018) states that the member states take measures to support selective
demolition and establish the sorting systems of the CDW, at least for wood, mineral materials, metal, glass,
plastic and plaster. From the directive and the target values, it is clearly visible at the central level that the effort
is aimed at the integration of the CDW into the circular economic model, and it is expected that it will soon be
put into practice. The basis of future waste management is determined by this approach, which prioritises
sustainability and the cooperation of industrial players through the construction of a more material and energy-
efficient economic model.
3.4 National Documents
The strategic directions designated by the EU must be adapted at the domestic level, one of which is the National
Waste Management Plan (2021-2027). The goal of the strategy is to make waste appear as a resource, to
reduce the level of landfilling, and in the future, only that waste that cannot be utilised in any form will end up in
landfills. The National Prevention Program (NPP) contains the objectives related to the prevention of waste
generation and the measures to be implemented in order to achieve them, in accordance with the National
Environmental Protection Program (2021-2027) adopted by the National Legal Repository (2021). One of its
main goals is to eliminate the connection between reasonable economic growth and the environmental effects
caused by waste generation.
Another extremely important strategic document is the Government of Hungary (2023). It can be clearly read
from the strategy that the mandatory use of secondary raw materials must become a fundamental element of
industrial material management and logistics, as well as generate a demand market for secondary raw materials.
In the current package of circular economy directives, the responsibilities also clearly fall on the
manufacturers/producers, which is expected to be further increased by other emission restrictions appearing in
the next 30 years, as well as by the voluntary commitments and measures of individual industries.
3.5 Quantities of CDW
Construction demolition waste (CDW) is a special form of generated waste. The available statistics clearly show
that this type of waste is generated annually in outstanding quantities in Hungary and in other member states of
the European Union. The CDW accounted for 35 % of all waste generated in the EU in 2021, while it accounted
for 40 % in Hungary (Figure 1). In order to deal with the situation, more and more good solutions are being
created, and more and more regulatory systems are being modified, the joint goal of which is to validate and
implement the aspects of the circular economy within waste management (Kozma, 2022).
Construction and demolition projects are responsible for around a third of all waste generated in the EU. At
current population growth rates, the middle class is projected to grow from 2 billion to more than 4 billion people
by 2030, requiring more urban buildings than have been built in the last 4,000 y. Another important issue is the
increase in the price of raw materials, which encourages the construction industry to use resource-efficient and
alternative materials, such as reuse and recycling. The rate of change for construction and demolition waste is
based on the National Environmental Protection Information System database.
4. Results and Discussions
The impact of the built environment on society and nature is unavoidable when sustainability and a circular
economy are discussed. For this reason, it is extremely important to exploit the circular connection points found
in the construction industry. The impact on the environment does not end with the completion of construction
either, as our buildings also burden the environment during their useful life: more than 40 % of primary energy
consumption can be attributed to it, and the emissions of harmful substances are also considerable. At the end
of the life cycle, the impact of the CDW on the environment is also significant.
The built environment includes the man-made elements of our environment, buildings, and infrastructure,
including transport, telecommunications, energy, water and waste management systems. Design and
construction contribute to the quality of the built environment, which has a significant impact on human health,
well-being and productivity (Buruzs, 2022).
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Figure 1: The share of the amount of construction and demolition waste generated from the annual waste
balances between 2004 and 2021 in Hungary Source: Based on the National Environmental Protection
Information System (OKIR) database, own editing. *Note: marked in green is the percentage of the amount of
construction and demolition waste generated
4.1 Strategies, practices and principles
Given the scale of raw material demand in the construction industry, many best practices in this sector focus on
reduced resource consumption, and eco-design is key to achieving the strategy's goals. Eco-friendly design has
many other tools, such as favouring wood over steel and concrete and developing concrete with less CO2
emissions through innovative solutions.
Extending the life of products and components is another strategy. Buildings can be designed specifically with
maintenance, repair and renovation in mind. In Scotland, for example, ARUP designed a fully integrated
structural health monitoring system that placed a thousand sensors in a building to provide alerts in the event
of structural failure. Henk Jonkers (TU Delft) has developed self-healing concrete that contains bacteria that fill
cracks when the concrete comes into contact with water (Background Materials for Circular Economy, 2021).
Designing buildings to be decomposable is an effective practice, as it allows for easy reuse of individual building
components when buildings are demolished as an alternative to landfilling.
There are many other ways to give new life to resources in the construction industry. The European Commission
(2018) has developed a structured plan for the management of construction waste to ensure maximum reuse
and recycling. By using recycled materials, the construction industry can turn waste from other industries into
useful building materials. Developments have also been made in the field of ‘green insulation’, where the
insulation material was produced from cork, cellulose from recycled paper, and used textiles (e.g. cotton, denim).
Recycling is particularly important for the construction industry, given the huge amount of waste generated
during demolition. Construction waste can also be turned into an energy source, thereby enabling the utilisation
of energy. For example, the Lafarge cement plant in Richmond, British Columbia, uses construction waste to
operate instead of burning fossil fuels (Background Materials for Circular Economy, 2021).
The introduction of the circular economy principle in the construction industry promotes the use of sustainable
materials, maximises material utilisation and avoids unnecessary waste generation. By applying the principles
of the circular economy in the European built environment, it is expected that 350 billion EUR can be saved by
resource and energy minimisation by 2030 (Ellen MacArthur Foundation, 2015). However, this sector is
characterised by a strong project-based institutionalised practice and market mechanisms, aspects which, in
many cases, do not facilitate the incorporation of circular economy principles. In the case of construction
projects, their implementation requires the cooperation of a large number of interested parties within a complex
supply chain, where each link contributes to the environmental impacts and costs of building production. In this
context, it is clear that European governments have a key role to play in developing appropriate guidelines and
policy interventions for the construction industry to support the transition to a circular economy (Norouzi et al.,
2021).
4.2 The Symbiosis of the Construction Industry and the Circular Economy
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of the building materials are not reused at the end of their useful life but are disposed of by landfilling or burning.
The main reason for this is that the construction industry uses a linear economic model based on the ‘take,
make, dispose’ principle. In this model, the first phase is to extract the raw materials, which are then transformed
into building materials and used on the construction site. CDWs are disposed of after they are used up – and
they become waste (Buruzs, 2022).
In contrast, another economic model emerging in recent decades is the circular economy, the basic principle of
which is more efficient resource management. The Ellen MacArthur Foundation (2015) promotes the ideas and
possibilities of the circular economy through a number of studies, defining the economy as a regenerative
system that aims to keep materials at their highest value in a closed loop.
The concept of the circular economy developed from industrial ecology. It tries to gather existing methods and
approaches from different scientific fields under one hat: for example, industrial ecosystems and industrial
symbioses, the 3R principle, cleaner production, eco-efficiency, cradle-to-cradle design, and biomimicry.
Approaches in this direction require closing material flow loops by reusing waste and resources and slowing
them down by developing long-life, reusable products (Norouzi et al., 2021).
In a circular economy, the primary thing is not to achieve the actual material cycle but rather to break away from
the use of materials or to minimise it. One of the ways to do this is to produce products with as long a lifespan
as possible. During their use, these products act as a ‘material bank’, which we cannot and do not want to utilise
during this time. In the circular economy model, worn-out building materials should be reused to act as material
banks for new buildings, keeping building elements and materials in a closed loop, as the Ellen MacArthur
Foundation proposes in the general circular economy concept.
However, in connection with this new type of approach, the development of the knowledge base and tools is
still necessary in order for it to spread more widely in the industry. Especially in the construction industry, where
the implementation of innovation typically takes more time. Building construction is often a one-off project with
a large supply chain, which only adds to the complexity of the process.
The construction industry is responsible for significant environmental impacts due to its large demand for
resources and energy, as well as its production of waste. The circular economy can significantly improve the
sustainability of this sector, where the main focus areas are:
• energy efficiency of buildings;
• recycling, waste management and the use of alternative building materials.
Recently, it can be stated that the application of the EU directives in Hungary in practice is difficult and/or not
always successful. The parameters required by policies and legislations need to be made more understandable
to practitioners, underpinned with practical solutions, best available techniques, best practices and
benchmarking.
These can, therefore, be considered as potential future research topics.
5. Conclusions
Based on the research, it can be concluded that the construction industry is under urgent pressure to transition
from the current paradigm (linear economy) to a more sustainable paradigm (circular economy) as soon as
possible, which approach provides an opportunity to address the challenges detailed above and to create a
sustainable, green construction sector. In the future, it is expected that regulatory approaches at the national
level will evolve in a way that will provide a strong incentive for the owner of the waste, i.e. the business entity
in the construction sector, to use the generated construction and demolition waste for its original purpose in an
environmentally sound way and/or to make it available as a secondary raw material for other economic sectors.
The reason for the uncertainty of the adaptability is that the circular economy - in contrast to previous
environment-based initiatives - does not represent just one ecological aspect (e.g. climate protection). Rather,
it means a new development paradigm in which a holistic vision integrates the various subsystems of the pillars
of sustainability in a versatile way, and it is difficult to interpret and/or implement for practitioners in Hungary. As
a result, the circular economy appears not only in the production and use of building materials but also in
operation and maintenance and, finally, in the rehabilitation and demolition of old buildings and the management
of the generated waste.
Furthermore, the intention of the authors in this publication was to establish a connection between the
theoretical, strategic, and legislative sides and the activities involving significant waste generation in practice.
Based on experience, in many cases, the priorities included in the guidelines are not sufficiently effective in
practice, so it would be necessary to create more attitude-shaping and knowledge-sharing networks that
facilitate and support this process. This study tries to help in this situation.
In the course of further research, the authors’ intention is to make the best practices available to the actors of
the domestic construction industry by studying international practical examples and creating cooperation
between the actors of the construction industry. This includes understanding where material flows shift from
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push to pull triggers (disconnect points) and how these flows can achieve efficiency and sustainability.
Furthermore, it would be important to expand the focus of the study to other supply-demand balance points and
involve construction industry players.
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