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The circularity of natural resources

The built environment is responsible for 38% of GHG emissions. Up to 30% of emissions must be removed through natural climate solutions or technical solutions.

One of the pillars of the European Green Deal is the Circular Economy Action Plan, which was extended with a number of additional initiatives in 2022. The new requirements aim to make products more durable, reliable, upgradeable and repairable, easier to maintain, reuse and recycle, and more energy and resource efficient. The priority level of a country in terms of the circular economy can accord with the trends in consumer demand. Where the circularity index is higher, consumers have a greater influence on the market and prefer sharing-economy solutions to buying products.

The main goals defined in Vision 2050:

  • Dissemination of a global standardized methodology for measuring circularity in order to reduce the procurement risk of critical raw materials.

  • Development of indicators and methods to promote the circularity of plastic, development of supporting business solutions in connection with the UN agreement aimed at eliminating plastics.

  • Creating a nature-positive roadmap for the built environment. Drive alignment and commitment to net zero and nature-positive action, including how to measure and account for life-cycle carbon emissions.

  • Development of a framework for harmonizing capital market requirements and evaluations, transformation of built environment systems, business management, strategy, risk management and performance management along the value chain.

Barriers and enablers defined with our experts’ involvement:

BARRIERS (TOP3)

  • Hungary lacks a long-term mindset and continuity. We do not have cross-government strategies, and related databases and research results are not integrated.

  • There has been no significant progress in circular-economy-related regulation for the construction sector. Hungary’s sustainability strategies focus on a preference for use of brownfields, although this is currently not followed by implementation.

  • The system in Hungary is currently more focused on waste management, rather than having a production-conscious approach.

ENABLERS (TOP3)

  • Striking a balance between regulation and market conditions, and between negative and positive incentives.

  • A shift toward the circular built environment involves changing current roles and business models. Technological solutions are already available, but not accessible to all. Education throughout the value chain, the incorporation of innovative solutions, and the current scarcity of raw materials can all contribute to progress.

  • There has been a shift in consumer awareness, albeit accompanied by misconceptions. The EU is adopting regulations to limit the practice of greenwashing, and stressing the importance of producing and using durable, repairable and reusable products.

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