Using secondary construction products is still seen by some mainstream construction stakeholders as risky compared to virgin materials. Standard building insurance and liability policies were designed for new materials, creating ambiguity—or at least a perceived coverage gap—for reclaimed components. This deters risk-averse stakeholders, despite the significant potential benefits:

Reusing construction materials in Europe could cut CO₂ emissions by an estimated 4.4–12.6 Mt cumulatively between 2025–2050.¹

Furthermore, upcoming EU regulations (e.g., EU Taxonomy criteria for reuse/recycled content) and city-level initiatives (e.g., Whole Life Carbon thresholds) are set to increase demand, making the need for clear risk management pathways urgent.Our research confirms that the “insurance issue” encapsulates broader concerns across the value chain regarding:

Performance and failure: Assessing the remaining lifespan and quality of secondary materials, and assigning liability for defects or underperformance.

Project risks: Managing potential delays and cost overruns associated with deconstruction, reconditioning, or sourcing secondary materials.‍

Damage and liability: Determining responsibility for damage during removal, transit, or reinstallation.‍

Supply chain reliability: Ensuring the timely availability of specified reused materials.

In response, pioneering companies have found practical ways to incorporate risk mitigation in their business models, utilizing strategies such as:

• Design conservatism (over-engineering)
• Cascading use (downcycling)
• Demanding extensive data
• Using specific contractual models (e.g., Design, Build, Maintain, Operate (DBMO))
• Relying on highly integrated suppliers who control the chain from sourcing to installation

Providers such as Cycle Up and Concular are actively addressing risk by:

• Offering reconditioning services
• Providing detailed documentation
• Partnering with insurers (e.g., SMABTP, VHV, WTW) to offer extended guarantees or product liability insurance
  

These examples prove that insurable solutions are possible, though not yet standard. Yet, mainstream construction stakeholders continue to demand clarity about the role of risk-mitigating measures they are familiar with and that integrate into regular business practice—insurance. This suggests there is still a crucial role for insurance companies to play in alleviating real or perceived risks and mainstreaming the use of secondary construction products as the market scales and business cases emerge.

About the Circular Buildings Coalition

The Circular Buildings Coalition (CBC) is a collaborative initiative aimed at accelerating the transition to a circular built environment in Europe. The CBC brings together key stakeholders from the construction sector to overcome barriers and embrace sustainable practices. Its founding members include Metabolic, Circle Economy, the World Green Building Council (WorldGBC), the World Business Council for Sustainable Development (WBCSD), the Ellen MacArthur Foundation, and Arup.

The CBC addresses systemic challenges that hinder circularity in construction, with a focus on:

1. Financing mechanisms: Developing tools and models to redirect financing toward circular construction, aiming to make the financial sector a key player in this transition.
2. Ownership models: Identifying and promoting ownership structures that support circular design and long-term value in the built environment.
3. Market dynamics: Facilitating the integration of circular materials in construction by connecting supply and demand, developing infrastructure, and fostering mindset shifts among stakeholders.

As part of its initiatives, the CBC launched an open call for blueprint projects in 2025, offering up to €70,000 in funding to scale and expand circular solutions. This effort aims to amplify proven solutions and accelerate the shift toward a circular built environment in Europe.

By addressing these challenges, the CBC seeks to transform the construction sector into a more sustainable and resource-efficient industry.