Research identifies regulatory barriers to the transition to a circular economy in construction
The circular economy has become a prominent feature of the branding strategies of cities and urban districts, but there is a risk that these environmental ambitions will remain little more than marketing rhetoric unless they are supported by effective implementation mechanisms.
In his doctoral dissertation, architect Tuomo Joensuu examines the prerequisites for transitioning to a circular economy in the built environment through an extensive literature review and three case studies. His findings demonstrate that the current regulatory framework does not fully support the polluter pays principle and provides insufficient incentives for the development and uptake of new circular economy solutions.
“My dissertation highlights the need to assess the circular economy from a comprehensive and multidisciplinary perspective. The built environment is a complex system shaped by building-specific and regional technical solutions, economic incentives, regulations, collaboration among stakeholders and user behaviour. A successful transition to the circular economy therefore requires continuous learning, experimentation and the assessment of impacts,” says Joensuu.
Structural barriers hamper innovation
One of Joensuu’s key findings concerns integrated community energy systems (ICES), in which local stakeholders generate, consume and share energy collectively. An interview study conducted as part of the Hiedanranta urban development project in Tampere has found that experimentation with ICES models is currently constrained primarily by the Finnish Electricity Market Act and, to a lesser extent, by land use planning practices.
“Implementing a pilot ICES comprising several city blocks would require the support of distribution system operators, planning and regulatory authorities as well as public funding bodies, underlining the need for an operating environment that better supports innovation,” says Joensuu.
Joensuu also identifies shortcomings in life cycle assessment, which is a widely used tool for evaluating the environmental impacts of buildings. According to Joensuu, the method currently used in Finland to calculate the environmental impacts of buildings over their entire life cycle emphasises immediate emissions reductions but does to encourage, for example, the design of buildings for reuse. The calculation method also fails to account for the most environmentally sustainable end-of-life treatment options for biobased materials and provides little incentive for the utilisation of by-products from the timber industry.
“My primary message is that the widespread adoption of circular economy principles requires the continuous development of regulations alongside a deeper understanding of how the reuse of materials, resource efficiency and new operating models can be integrated into the built environment. This would accelerate the transition towards more sustainable resource use in both the construction sector and wider society,” concludes Joensuu.
Architect Tuomo Joensuu’s doctoral dissertation in the field of construction management and economics, titled “Notes on Governance for the Sustainable Built Environment: Climate and Circular Economy Perspective”, will be publicly examined in the Faculty of Built Environment (BEN) at Tampere University on Friday 11 September 2026.
More information about Tuomo Joensuu’s dissertation (in Finnish) and a link to the doctoral defence.
