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Building and construction industry

It takes a lot of energy and resources to construct and maintain the built environment. Transforming it requires innovation, circularity and collaboration. Danish policies and industry initiatives are paving the way for more sustainable building practices.

Emissions in the built conditions

The building and construction sector plays a pivotal role in shaping a more sustainable and competitive future. It is responsible for 36 percent of global carbon emissions, with approximately 10 percent linked to the production of construction materials used in new and existing buildings. Addressing these emissions is crucial to achieving global climate targets and enabling a circular, resource-efficient economy. 

Historically, efforts in the sector have focused on reducing operational carbon emissions—those generated during a building’s use phase through heating, cooling and lighting. While this has delivered significant progress and continues to be a crucial green frontier, less attention has been paid to reducing embodied carbon emissions. These originate from the design, production and deployment of materials such as cement, steel and aluminium, and solutions to mitigate embodied emissions have lagged. 

The scale of the challenge is vast. The built environment drives demand across numerous sectors, supports local jobs and directly impacts quality of life. It also consumes around 50 percent of all extracted materials globally and generates over 35 percent of the EU’s total waste. Unlocking climate gains in this sector will therefore require innovation in material use, building design, construction processes and end-of-life reuse. 

The life cycle of buildings

The figure illustrates the division of a building’s life cycle into stages and modules according to the European standard EN 15978 for Life Cycle Assessment (LCA). Through all stages, there are opportunities for industry to practice sustainable resource use – from resource efficient manufacturing to energy renovation to recycling material beyond the building’s life.

Life cycle of buildings illustration

Constructing strong partnerships

Industry collaboration is key to this transformation. In Denmark, the long-standing tradition of public-private partnerships has been harnessed to accelerate the sector’s green transition. In 2020, the Climate Partnership for Construction put forward targeted recommendations to this end—spanning intelligent energy management, increased energy renovation rates and fossil-free construction sites. If fully implemented, these measures could reduce emissions by 5.8 million tonnes of CO₂ annually by 2030. 

Building on this momentum, Danish industry stakeholders launched the Action Plan for Sustainable Construction in 2023. Developed in collaboration with government, it outlines 32 initiatives to advance low-carbon building practices—from increasing material reuse and improving data quality to standardising life cycle assessments. 

To further support this shift, Denmark introduced mandatory Life Cycle Assessment (LCA) requirements for new buildings in 2023, as one of the first countries in the world to do so. These requirements will be tightened gradually until 2029 to drive more climate-conscious design decisions from the outset. Together, these initiatives signal a systemic transformation—anchored in collaboration, innovation and a shared commitment to building a more sustainable future. 

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This article is a part of the white paper “Towards a sustainable industry”. Featuring in-depth cases and insights from key Danish players, the white paper offers a toolbox of ideas, technologies, and frameworks for a green transition.

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