Brogan MacDonald

9 November 2023

Circular Economy is the future – it’s a matter of how quickly we can make this happen

In celebration of London Circular Economy Week 2023, Ramboll hosted an event at the Tate Modern (itself an outstanding example of adaptive reuse). We posed the question to our diverse panel - is it feasible that the circular economy will contribute to the decarbonisation of the built environment? Here's what they had to say. 

With a diverse panel including a townscape consultant, insurer, architect, demolition expert and myself an engineer as the moderator – we set out to understand the opportunities and barriers of applying a circular economy from all angles.

The need for change in the built environment has never been more apparent, with resource security concerns, materials costs, labour shortages, and skyrocketing energy bills contributing to vacant buildings and struggling businesses.

The circular economy represents a paradigm shift that emphasises the efficient use of resources and prioritises reuse. This transition may not be straightforward, but the necessary infrastructure is gradually emerging, and the built environment sector is increasingly willing to explore the immense opportunities it offers.

Circular economy principles may feel like a cost, but, they are key to achieving decarbonisation and securing the future of businesses in the built environment.

As the moderator, I was joined by our panellists Dr Timur Tatlioglu from Montagu Evans, Jakob Stromman-Anderson from Henning Larsen, Holly Price from Keltbray, Dominic Lion from Gallagher. Here are the key discussions and take aways from the event.

Existing Buildings: A Case for Reuse

The retention and transformation of existing buildings is central to the circular economy's principles. Timur outlined that while M&S Oxford Street case was identified as a landmark case study, the key facts are unlikely to be replicated. While the case for reuse was supported by an inspector and the secretary of state, it underscores that determining a building's "merit" can be an esoteric discussion, making it crucial to align reuse with a powerful carbon argument.

The geography plays a significant role in this discussion. London, with its thriving market for adapting historic buildings, particularly Victorian structures, exhibits more political will to embrace a retrofit-first approach. This highlights the importance of national policy in promoting such initiatives and broadening the scope of existing building adaptation.

Changing the perception of existing buildings from being ‘too difficult’ to ‘valuable carbon stores’ - comes down to branding and storytelling. Once you've shifted people from seeing a lack of something, to recognising the value of these structures, the technical challenges can be addressed. It's imperative to design buildings for the best chance of survival without tunnel vision for their initial purpose.

Are we super-optimising new builds while neglecting the potential carbon stores that existing buildings can represent? This is a question that needs deep consideration.

Demolition: Overcoming the Perceptions

Demolition is often seen as a costly, risky, and, unfortunately, a necessary evil at the beginning of a project. However, perceptions can be deceiving, and the reality may not be as daunting as it seems.

The presence of demolition teams at an early stage can help mitigate risks. While it may extend project timelines and incur additional upfront costs, it offers valuable insights into the structural aspects of demolition that can identify new possibilities.

Demolition is evolving into something more than just a necessary step at the project's outset. Deconstruction for salvage, as opposed to destructive demolition, is becoming a potential gateway to unlocking the value of existing buildings and contributing to the circular economy.

Insurance: Bridging the Gap

Insurance plays a pivotal role in the circular economy, especially when it comes to second-hand materials and construction processes. The industry is highly fragmented, with property insurance and construction insurance representing two distinct strands, each with different considerations for underwriters.

In the post-Grenfell era, insurers are concerned about being pulled into debates about what constitutes "good" in the construction industry. Building trust with insurers is crucial.

Providing detailed information about materials is not the primary concern for insurers. Instead, it's about taking them on a journey with project teams and building confidence in the plans that aim to create something sustainable. Insurers are under no obligation to insure, so it's essential to give them a compelling reason.

Many insurers are willing to support circular economy projects but require early engagement and effective storytelling. It's crucial to bring them on board to dispel the notion that circular economy practices are radical or experimental.

Dominic highlighted that the legacy of past negative experiences, such as the Primark Belfast and Glasgow School of Art incidents, can be overcome with early engagement, compelling narratives, and some gentle pressure.

Conclusion

Circular economy is not just a buzzword; it's a vital transition that the built environment sector needs to embrace. By rethinking our approach to existing buildings, re-evaluating the demolition process, early engagement of stakeholders and bridging the knowledge gap with insurers, we can unlock the immense potential of circular economy principles in creating low carbon buildings.

  • We are closer to circular economy adoption than ever before, but there is still a way to go.
  • We need more storytelling, case studies and “light house” projects. We need to nurture our relationships with stakeholders and engage them early.
  • And we need to act with urgency, not only to meet upcoming planning policy updates, but to ensure a sustainable future for businesses in the built environment.

We have seen that challenges are real - but the rewards are even more significant, making it a journey worth embarking upon.

Want to know more?

  • Brogan MacDonald

    Head of Sustainability–Structures

    +44 7814 760380

    Brogan MacDonald