Circular Economy in Construction Projects: An Institutional Perspective on Circular Economy in Danish Construction
Authors
Ibsen, Louise Lund ; Søndergaard, Signe Holm ; Krogh-Jørgensen, Anne
Term
4. Term
Publication year
2026
Submitted on
2026-06-04
Pages
120
Abstract
The construction sector uses large amounts of resources, generates substantial waste, and has a major environmental impact, so it is central to the shift to a circular economy (more reuse, recycling, and less waste). Although circularity is often highlighted as a solution, implementation remains limited and scattered across isolated projects. This thesis examines how institutional conditions—such as rules, norms, and incentives—shape the integration of circular practices in project-based construction, and how policy instruments can support a broader circular transition in Denmark’s construction industry. The study uses a qualitative design with a social-constructivist perspective. The empirical basis consists of semi-structured interviews, document analysis, observations, and a systematic literature review. The analysis brings together theories of institutions, organizational readiness, power and actor relations, and transition theory to clarify what enables or hinders circularity. Findings show that circular practices are shaped by a complex interaction of regulation, relationships between actors, organizational capabilities, and power dynamics. The project-based nature of construction creates specific challenges: temporary collaborations among many parties with different interests make coordination and long-term learning difficult and impede systematic implementation. Organizations also differ widely in resources, competencies, experience, and strategies, so the same external requirements can trigger very different responses. The move to circular construction is therefore not only a technical issue but an institutional transformation in which organizations, projects, and governance mechanisms must evolve. Based on these results, the thesis develops seven principles for policy pathways: 1) clear long-term direction, 2) gradual tightening of requirements, 3) support for experimentation and learning, 4) broader understanding of circularity, 5) improved economic viability, 6) early integration of circular considerations in project processes, and 7) standardization and institutionalization of circular practices. These principles are combined in an adaptive five-phase transition roadmap that outlines a gradual path toward a construction sector where circularity is an integrated and legitimate part of everyday practice. The thesis concludes that a successful circular transition requires changes to the institutional frameworks that shape decisions and collaboration in construction, so circular solutions become economically attractive, organizationally feasible, and institutionally embedded.
Byggebranchen bruger mange ressourcer, skaber meget affald og påvirker miljøet, og derfor er den central i overgangen til en cirkulær økonomi (mere genbrug, genanvendelse og mindre spild). Selvom cirkularitet ofte fremhæves som løsningen, sker implementeringen stadig spredt og i enkeltstående projekter. Dette speciale undersøger, hvordan institutionelle rammer – fx regler, normer og incitamenter – påvirker integrationen af cirkulære praksisser i projektbaseret byggeri, og hvordan politiske virkemidler kan understøtte en bredere omstilling i den danske byggebranche. Studiet bygger på et kvalitativt design med et socialkonstruktivistisk udgangspunkt. Datagrundlaget er semistrukturerede interviews, dokumentanalyse, observationer og et systematisk litteraturreview. Analysen samler teorier om institutioner, organisatorisk parathed, magt- og aktørrelationer samt transitionsteori for at belyse, hvad der fremmer eller hæmmer cirkularitet. Resultaterne viser, at cirkulære praksisser formes af et komplekst samspil mellem regulering, relationer mellem aktører, organisatoriske kapabiliteter og magtdynamikker. Den projektbaserede karakter skaber særlige udfordringer: midlertidige samarbejder mellem mange parter med forskellige interesser gør koordinering og langsigtet læring vanskelig og forhindrer systematisk implementering. Organisationer har desuden meget forskellige forudsætninger i form af ressourcer, kompetencer, erfaringer og strategier, og de samme krav kan derfor give meget forskellige reaktioner. Overgangen til cirkulært byggeri er ikke kun et teknisk spørgsmål, men en institutionel transformationsproces, hvor organisationer, projekter og styring skal udvikles. På den baggrund udvikler specialet syv principper for politiske omstillingsveje: 1) tydelig, langsigtet retning, 2) gradvist skærpede krav, 3) støtte til eksperimentering og læring, 4) bredere forståelse af cirkularitet, 5) bedre økonomisk levedygtighed, 6) tidlig integration af cirkulære hensyn i projektforløb, og 7) standardisering og institutionalisering af cirkulære praksisser. Principperne samles i en adaptiv roadmap med fem faser, der skitserer en gradvis vej mod en byggebranche, hvor cirkularitet er integreret og legitim i den daglige praksis. Specialet konkluderer, at en succesfuld cirkulær omstilling kræver ændringer i de institutionelle rammer for beslutninger og samarbejde i byggeriet, så cirkulære løsninger bliver økonomisk attraktive, organisatorisk gennemførlige og institutionelt forankrede.
[This apstract has been rewritten with the help of AI based on the project's original abstract]
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