The construction sector in Europe: a major industry facing major challenges.
The construction sector is one of the pillars of the European economy, but also one of its biggest environmental challenges.
A key sector with heavy footprint
Construction represents 11.5% of the EU’s Gross Value Added[1], shaping the spaces where we live, work and connect. But behind this central role lies a significant impact:
- More than one-third of total waste in the EU comes from construction
- Up to 37% of global CO2 emissions[2] are linked to buildings and construction
- Around 60% of a building’s carbon footprint comes from construction materials even though with greater material efficiency, some countries could save 80% of those emissions[3]
On top of that, 20-30% of all construction materials are still petroleum-based[4], while global construction output is expected to grow by more than 40% by 2030[5]. The challenge is clear: we need to build more, but with far less impact.
In recent years, the consequences of the COVID-19 pandemic, the war in Ukraine, rising energy prices, labour shortages and supply chain disruptions have deeply affected the sector. More recently, tensions around the Strait of Hormuz have also highlighted how geopolitical instability can further disrupt global energy and raw material supply chains, increasing uncertainty for construction industries worldwide. Our need to transition towards more sustainable construction has therefore become even more urgent and complex.
Bio-based materials: a promising pathway for change
In this context, bio-based construction materials are increasingly seen as part of the solution, offering new ways to reduce the sector’s impact and reliance on fossil resources. Some of these materials already demonstrate their potential in real conditions.
For example:
- Straw can store around 9 kg of CO₂ per m² in a typical wall
- Hemp can absorb 9 to 15 tonnes of CO₂ per hectare per year
- Bio-based binders made from lignin or waste biomass can reduce the use of fossil-based adhesives in plywood and insulation panels
- Wood fibre insulation offers strong thermal and acoustic performance using renewable resources
The European regulatory framework is already moving in this direction, with the objective of climate neutrality by 2050 and initiatives like:
- the European Green Deal
- the European Climate Law
- the Fit for 55 package
Even though challenges remain, including cost, supply, and confidence in long-term performance, the trend is clear: the market for bio-based construction materials is growing rapidly, with an expected annual growth rate of 13–14% by 2032.[6]
How HIBISCUS makes a difference
In response to these challenges, the HIBISCUS project focuses on the building envelope and works on five pilot-scale products:
- Two waterproofing solutions – targeting at least 80% bio-based content for bio-binders and up to 85% for bio-based polymer membranes
- Two insulation solutions – targeting at least 60% bio-based content for insulation foams and up to 100% for wood-fibre insulation
- One carpentry solution – targeting up to 80% bio-based content
The project aims to increase the bio-based share of materials, and to improve their industrial relevance, durability and circularity placing a strong emphasis on the Safe and Sustainable by Design (SSbD) approach.
HIBISCUS also seeks an average 25% improved environmental profile compared with conventional reference materials.
From waste to high-performance materials
Several technical routes are being developed. For waterproofing, HIBISCUS explores alternatives to bitumen and PVC, using feedstocks such as:
- waste cooking oils
- lignin
- pine-derived compounds
The goal is to bring these solutions closer to real-world use by moving them from TRL 4–5 to TRL 6-7 by 2029, meaning they will be tested in real conditions and prepared for future market uptake.
Building the future, differently
The construction sector must evolve, and fast. Bio-based materials offer a promising pathway, but their success depends on performance, trust and industrial scalability.
This is where projects like HIBISCUS play a key role. In fact, HIBISCUS is not just developing new materials, it is helping redefine how Europe builds for a more sustainable future!
[1] European Commission, European Innovation Council and SMEs Executive Agency, Brincat, C.,Graaf, I., León Vargas, C. et al., Study on measuring the application of circular approaches in the construction industry ecosystem – Final study, Publications Office of the European Union, 2023, https://data.europa.eu/doi/10.2826/488711
[2] https://www.unep.org/news-and-stories/press-release/not-yet-built-purpose-global-building-sector-emissions-still-high
[3] European Union. (n.d.). Buildings and construction—Internal Market, Industry, Entrepreneurship and SMEs. Retrieved 23 April 2026, from https://single-market-economy.ec.europa.eu/industry/sustainability/buildings-and-construction_en
[4] https://build-up.ec.europa.eu/en/resources-and-tools/publications/more-sustainable-building-materials-more-sustainable-construction
[5] https://www.oxfordeconomics.com/resource/future-of-construction/
[6] https://www.fortunebusinessinsights.com/bio-based-construction-polymers-market-102738
References:
Bourbia, S., Kazeoui, H., & Belarbi, R. (2023). A review on recent research on bio-based building materials and their applications. Materials for Renewable and Sustainable Energy, 12(2), 117–139. https://doi.org/10.1007/s40243-023-00234-7
Directorate-General for Communication (European Commission). (2021). Making our homes and buildings fit for a greener future. Publications Office of the European Union. https://ec.europa.eu/commission/presscorner/api/files/attachment/869476/Buildings_Factsheet_EN_final.pdf
European Union. (n.d.). Buildings and construction—Internal Market, Industry, Entrepreneurship and SMEs. Retrieved 23 April 2026, from https://single-market-economy.ec.europa.eu/industry/sustainability/buildings-and-construction_en
FLAMAND, V. (2021, December 28). Construction bas carbone: Les matériaux biosourcés et le stockage du carbone biogénique. Bâtiment Biosourcé. https://www.batiment-biosource.fr/materiaux-biosources-et-construction-bas-carbone/
FRD. (2025). Memento 2025 Panorama des marchés ‘Fibres végétales techniques à usages matériaux (hors bois)’. La librairie ADEME. https://librairie.ademe.fr/agriculture-alimentation-foret-bioeconomie/8890-memento-2025-panorama-des-marches-fibres-vegetales-techniques-a-usages-materiaux-hors-bois.html
Mazzoni, F., & Losacker, S. (2024). What hinders the transition towards a bio-based construction sector? A global innovation system perspective on its value chain. Progress in Economic Geography, 2(2), 100023. https://doi.org/10.1016/j.peg.2024.100023
Roignant, P., Delpeuch, V., Bono, P., Benoit, N., Dumeige, D., & Galz, G. (2019). Produits biosourcés durables pour les acheteurs publics et privés (Des). La librairie ADEME. https://librairie.ademe.fr/economie-circulaire-et-dechets/995-produits-biosources-durables-pour-les-acheteurs-publics-et-prives-des-9791029712821.html
