The construction, civil, and infrastructure sectors are becoming more critical than ever for the Canadian economy. Over the past decade, industry growth, driven by urbanization, population growth, and government investment in infrastructure, has contributed over 7 per cent to the national GDP in 2023, with the sector employing more than 1.5 million people across the country.
Major projects, including public transit expansions, renewable energy infrastructure, and residential developments, are at the forefront of this growth. But Canada’s built environment sector is facing increased pressure to adapt to sustainability and circular economy principles to facilitate long term resilience.
As Canada aims to meet its climate targets, construction firms are looking to overcome challenges in order to adopt the innovative solutions needed to foster a sustainable built environment.
Canada’s top sustainability challenges
There are several factors that make Canada’s transition to a more sustainable built environment industry complicated, including a high-rate of construction waste, outdated infrastructure, upfront costs, and diverse regulatory frameworks across provinces and territories.
One of the primary challenges is the energy efficiency of buildings. The National Energy Code of Canada for Buildings (NECB) and various provincial regulations set standards for energy performance, and but older buildings can lag in compliance. Retrofitting existing structures to meet modern standards can be costly and technically challenging, especially in remote or cold regions where energy demand is high.
Sustainable sourcing of materials is another challenge. The construction industry relies heavily on raw materials like concrete, steel, and wood, which have substantial environmental footprints. Ensuring that these materials are sourced responsibly, with minimal environmental impact, requires greater transparency in supply chains and collaboration across borders.
Construction and demolition waste is a significant concern in Canada. The country generates millions of tons of waste annually, which rests in landfills. Despite efforts to increase recycling and reuse, there is a lack of infrastructure for managing waste effectively, especially in regions where landfill space is limited.
Circular economy solutions that reduce waste and optimize energy
So what can be done about the challenges listed above? The circular economy offers a framework for leaders to address sustainability challenges by promoting the reuse, recycling, and repurposing of materials within the construction sector. In Canada, the adoption of circular economy principles is still in its early stages, but there are promising developments.
One of the most effective ways to reduce construction’s environmental impact is to align with circular economy principles by using innovative materials, technology, and new design methods. For example, cross-laminated timber (CLT) is gaining popularity as a sustainable alternative to traditional materials like steel and concrete. CLT is an efficient method for reducing building waste, as it prefabricated off-site and sequesters carbon. By utilizing this method, experts can design structures to be disassembled at the end of the building’s lifecycle and materials can be reused for future infrastructure projects.
Building Information Modeling (BIM) and digital twins can also be tools to reduce waste. BIM allows for detailed 3D modeling of buildings and infrastructure for better planning, coordination, and resource management. By simulating the construction process in a virtual environment also known as virtual design construction (VDC), BIM can help identify potential issues before they occur on-site, significantly reducing material waste and increasing efficiency.
Digital twin technology can extend the lifecycle of infrastructure by creating a real-time digital copy of physical assets. This technology can continuously provide information on a structure’s performance conditions throughout its lifecycle. Digital twins integrate data from sensors, IoT devices, and other sources, which can facilitate proactive, predictive maintenance, optimize energy use, and ultimately extend the lifespan of infrastructure. Further, the availability of data over the long term can extend the ability of facilities management to deliver a continuous flow of accurate project and asset development, regardless of staff changes over time. If integrated appropriately into other systems and properly maintained, the digital twin data remains the constant single source of truth.
Together, new innovative materials like CLT, and technology such as BIM and digital twins provide the construction sector with powerful opportunity to advance the circular economy by promoting resource efficiency and reducing environmental impact.
Opportunities and challenges of adopting circular economy
What’s positive is the progress being made, including Metro Vancouver introducing a ban on the disposal of recyclable construction materials, and provinces like Quebec and British Columbia implementing regulations and net zero transition plans to promote the use of low-carbon materials. Ontario’s ambitious $180 billion infrastructure investment plan, announced in the 2022 Budget, addresses critical areas such as public transit, highways, and broadband infrastructure and is expected to create over 100,000 jobs annually.
While the hope is that sustainable practices can lead to long term viability and increase ROI, the upfront costs associated with building a sustainable circular economy can be steep. A key discussion at Building Transformation’s Canada event last month was around the adoption of modular construction practices faces significant challenges in the region due to its reliance on small, family-run businesses and inconsistent government support.
Public-private partnerships (PPPs), such as the Canada Infrastructure Bank (CIB) supporting projects incorporating circular economy principles, are increasingly being used to deliver sustainable infrastructure opportunities in Canada. However, lack of federal uniform policies and support means there is an imbalance of progress throughout the country. Different provinces and municipalities have varying standards and requirements, making it difficult for companies to develop consistent strategies across the country.
Canada’s transition to a circular economy will also requires a cultural shift, meaning changing long-standing practices and mindsets, which can be resistant to change. Given this, providing education and training programs will be essential to equip the workforce with the skills needed for circular economy practices.
Next steps to consider
The construction, civil, and infrastructure sectors in Canada have a unique opportunity to reshape the built environment industry and reach a true circular economy.
While there are challenges to overcome, including economic, regulatory, and cultural challenges, the potential benefits are immense. By adopting innovative practices such as leveraging BIM and digital twins, energy and building performance simulation, efficient materials, improving waste management, and fostering collaboration across sectors, Canada’s built environment can become the model standard of sustainability and resilience.
August Nazareth is the global head of Built Environment, BSI Americas. She is a passionate circular economist, leading a team at BSI focusing on the future of the built environment industry.
Featured image credit: Getty Images
