Adopting CBMs presents financial, social and environmental benefits. According to the ING Economics Department, the market for a circular economy is growing and it is estimated that over the next 10 years, this will boost economic growth by up to 4 per cent*.
The switch to a circular economy, will require investors, tenants and government to play a central role and will also depend on a change of societal mind-set. While traditional business models do not often favour collaboration throughout the value chain. CBMs by contrast, depend on collaboration by all construction stakeholders, and agreement to use components that retain the highest value throughout the lifecycle, thus minimising waste.
The report highlights how innovation (including digital platforms, product passports, 3D printers and tagging sensors) will play a key role by enabling CBMs. Material databases will be created to store the information required to facilitate their later reuse and demonstrate their residual value through time and at the end of a building’s life-cycle. In addition, platforms like Building Information Modelling will become crucial to bring together people, processes and technology to achieve circular efficiency and performance. New models of governance and regulatory models will also be required, to ensure investments are supportive of CBMs.