Circular economy business ecosystem: from barriers to solutions in wood construction in Finland

Changing from linear to circular type of production and consumption requires considering how value is created and captured among the value networks, and what new roles in business ecosystems can be identified. Previous research found wood has the greatest reuse capacity when compared to conventional building materials. Although the EU is emphasizing the circularity in wood construction, the current rates are at a marginal level. Research has shown that further enhancement of business ecosystem is critical for the increase of wood material circularity in construction. In Finland, wood is the second largest share of construction and demolition waste after concrete, while most of wood waste from construction is burned for energy purposes. Current research given more attention on technological aspects, includes manufacturing and performances of bio-based products use in the buildings, construction and demolition waste management, rather than finding out challenges to adaptation and forward-looking solutions for circular economy implementation in wood construction. Therefore, our study addresses the research gap in the context of Finland where the value of wood form construction is mostly downcycled instead of being retained. This study explores the business ecosystem actor’s involvement in wood material circulation in Finland and analyses the reason behind in less recycled wood products used in construction. The research data is based on 14 semi-structured qualitative interviews and two workshops with experts working in different wood construction life phases. We first mapped actors and found the network is complex. Additionally, the strong links between construction operational level actors focusing on reused material are yet largely missing. Our thematic analysis found the strong positions of the forest industry and virgin wood products in Finland may weaken the uptake of used wood from construction. These market barriers are linked with the cultural ones, such as perceived high risks to new practices, wariness towards innovation, lack of coherent vision on sustainability priorities, and the resulting lack of collaboration throughout the entire value chain. The interview findings also emphasize the significant role of intermediary actors, such as the management of material hubs, in accelerating the circular economy in wood construction. From workshops, we dive deeper into practical solutions, including the use of digital platforms for better circulating wooden building materials. We assume that the cross-sectoral approach and raising awareness among business ecosystem actors on the opportunities related to wood recirculation may help to harmonize wood-related reuse practices. Future research is still needed on understanding the end-user inclusion in the business ecosystem and their acceptance of reused wooden materials.

Keywords: circular economy, circular ecosystem, wood construction, intermediaries

Authors

Md. Rayhanur Rahman
Department of Forest Sciences, University of Helsinki, Finland

Angelina Korsunova
Department of Forest Sciences, University of Helsinki, Finland

Anastasija Dmitrijeva
Department of Forest Sciences, University of Helsinki, Finland
Satakunta University of Applied Sciences, Finland

Anne Toppinen
Department of Forest Sciences, University of Helsinki, Finland

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