"We need significantly more support to test and approve emerging materials. Interestingly, many of these materials aren’t entirely new—they’re rediscoveries. Materials like hemp, straw, and clay have been used for centuries, with a proven track record demonstrated by buildings that are still standing strong today." — Johan Jönsson, Head of Development at Brukspecialisten AB
‍

The "Redefining Construction" report by Sustainordic is an inquiry into what’s really needed to transform the construction industry and align it with planetary boundaries. As the built environment contributes significantly to CO₂ emissions, resource depletion, and biodiversity loss, this report underscores the critical role of small and medium-sized enterprises (SMEs) in driving innovation. SMEs, which represent 99% of the European construction sector, are at the forefront of introducing biobased, circular, and low-carbon materials. However, they continue to face systemic challenges, including restrictive regulations, certification barriers, and the entrenched dominance of large industry players.

The report — part of the Nordic Sustainable Construction program initiated by the Nordic ministers for construction and housing and funded by Nordic Innovation — is the result of engaging 42 experts and practitioners alongside 17 interviews with SMEs working with nature-based solutions, such as Søuld, EcoCocon, BC Materials, and Ekolution AB. This research was further enriched by three events with over 100 participants.

The construction and real estate sectors are significant contributors to environmental challenges, accounting globally for 39% of energy-related CO₂ emissions, and having other adverse impacts on the planet such as resource depletion, pollution, and biodiversity loss. Addressing these challenges is a societal endeavour with far-reaching implications, and the pre-condition is the will to operate a radical shift in practices and priorities. But setting aside for a moment the well-known problem of GDP growth and industry interests compromising long-term sustainability goals, the report identifies some specific hindrances to decarbonise the built environment, as well as some possible, practical solutions.
‍

The first, broad goal is clear: reliance on CO₂-intensive materials must be replaced with alternative solutions to enable the sector to operate within safe environmental limits.

Small and medium-sized enterprises (SMEs) are particularly important in this transition, as they comprise 99% of the European construction sector, employing over 18 million people and representing 83% of the workforce. SMEs are central to achieving the EU’s target of a climate-neutral economy by 2050, as they are the main drivers of innovation, being able to adapt quickly and being more willing to take on risks. Yet they remain constrained by systemic barriers, including conventional industry dominance and outdated regulatory frameworks. It is often in this outdated regulatory framework, in fact, that adopting innovative, lower-carbon materials, becomes synonymous with taking on a risk.
‍

Stakeholders engaged in the Nordic Sustainable Construction programme have emphasised the role of legislation and regulation as critical tools for guiding the sector towards practices that align with planetary boundaries. While building regulations are in place to ensure safety and a certain degree of standardisation, they can also prove to be a barrier, especially for newer, smaller companies driving material innovation who also lack the financial resources necessary to conquer the market, relegating them at the margin. But there are some viable solutions.
‍

1. A key recommendation is the prioritisation of renovation over demolition. By providing financial, regulatory, and educational incentives, governments can unlock the potential of existing buildings while integrating sustainable materials. Feasibility tools and guidelines are essential for enabling architects, engineers, and contractors to confidently implement nature-based alternatives, including agricultural byproducts and biogenic materials that support local economies. This approach reduces reliance on carbon-intensive imports while preserving cultural and structural assets.
   ‍
2. Another central strategy is to ensure that all buildings function as carbon storage solutions. Certification standards for materials that quantify long-term carbon sequestration can help establish buildings as critical components of the carbon cycle. Alongside this, the report advocates for limiting the use of CO₂-heavy materials, such as concrete and steel, to projects where they are absolutely necessary, such as bridges and tunnels.
   ‍
3. The report also calls for stronger public procurement reforms, a necessary tool to open markets for innovative solutions, making it easier for SMEs to compete and scale. To foster collaboration, cross-sector partnerships and eco-building hubs are proposed to reduce inefficiencies, share expertise, and drive cost-effective solutions.
   ‍
4. Education and awareness play a pivotal role in this transition. The report urges investment in training programmes for decision-makers, alongside showcasing successful projects to inspire adoption. Public campaigns are essential to address misconceptions about sustainable materials and demonstrate their viability in real-world applications.

Ultimately, scaling innovative, biobased solutions and creating the right conditions for SMEs to thrive is a very promising way forward. For platforms like revalu, this insight reaffirms the importance of empowering AEC professionals with tools, knowledge, and access to the sustainable materials needed to drive the industry’s much-needed shift toward circularity and carbon neutrality.

Read the full report here.