Breaking the barriers: Circular procurement adoption in the Finnish construction supply chain

Abstract

Finland’s built environment domain is accountable for 30 % of the country’s total emissions. According to the Finnish Environment Institute, construction and demolition waste is the second-largest waste category in Finland, amounting to nearly 12.6 million tonnes in 2023. Although the applicability of Circular Economy (CE) practices can minimize the use of natural resources and reduce waste generation, the construction industry has been slow to incorporate CE due to various challenges. Nevertheless, Finland’s 2035 carbon neutrality goal has urged this transition, where procurement can play a vital role. However, a substantial research gap remains concerning the challenges hindering Circular Procurement (CP) adoption.

Accordingly, this qualitative study explored the central research question: How can the barriers of circular procurement adoption to the Finnish construction supply chain be overcome? The primary aim was to generate a conceptual model outlining specific strategies for different stakeholders to address CP adoption barriers. Data were originally collected through semi-structured interviews with ten experts representing research, design, consultancy, contracting, and policymaking roles- all possessing varying levels of awareness of CE practices in the Finnish construction industry. Purposive and snowball sampling methods were employed. A detailed literature review was also conducted using fourteen key documentary sources, including six research articles and eight other materials such as reports, case studies, and regional documents. Thematic analysis was adopted to analyse the interview results, which were collected throughout five weeks period, mainly in October 2025. Ethical guidelines were strictly followed, and participants’ identities were kept anonymous.

The analysis revealed that circular procurement adoption into the Finnish construction supply chain requires not only environmental compliance but also a systematic transformation of existing practices. Five interrelated categories of barriers were identified: financial constraints such as high initial cost premiums; regulatory ambiguity arising from liability issues and certification gaps; cultural resistance driven by generational attitudes and knowledge deficits; operational complexities including extra coordination efforts and hidden costs; and a lack of client demand.

The developed multi-layered stakeholder framework emphasizes a sequential and collaborative approach to overcoming these barriers. The government must establish the foundational regulatory and economic structures; clients should drive market demand while sharing risks; technical experts need to operationalize CP through innovative designs supported by digital infrastructure; and all stakeholders must facilitate cultural transformation through continuous education and funded pilot projects. The study identifies client demand as the primary market lever, while recognizing warranty assumptions and formalized risk-sharing agreements as critical implementation mechanisms. Ultimately, the proposed framework provides an actionable structure for systematic circular procurement adoption, thereby bridging the gap between Finland’s policy objectives and the construction industry’s current practices.