Our recent study examines the root causes for low utilization rate of reclaimed wood in the Finnish built environment. We explore the characteristics of the existing business ecosystem and identifying solutions for increasing the reclaimed use of wood as part of circular economy.
Both the EU taxonomy and renewing construction product regulation continue to push for more circular practices in construction, Finland still lags when it comes to wood recycling and reusing in construction. At the same time, wood material is the second largest share of construction and demolition (C&D) waste after concrete. In order to achieving EU carbon neutrality goal by 2050, construction sector should enhance reusing and recycling of wood instead of incineration.
How does reclaimed wood business ecosystem looks like?
Our study, based on both interview and workshop data, found that reclaimed wood is part of a complex business ecosystem. Yet, to make better use of it and support circular economy practices, there needs to be stronger connections and communication between the stakeholders involved at every stage of a building’s life—from construction to demolition and beyond. Additionally, the involvement of strong intermediaries specializing in reclaimed wood at different phases of a building’s life is required.
What existing barriers are there for reclaimed wood?
The reasons behind the current low cascading rates of construction materials are many, including technological, regulatory, market and cultural barriers. From market perspective, well established forest industries and availability of affordable virgin wood material in Finland weaken the push for reclaimed wood use. Culturally, construction industry’s conservatism, resistance to change, and wariness of innovation, the fears and prejudices against new approaches and perceived high risks are mentioned as main barriers. Considering construction technology, we found weak development of knowledge and skills, along with digitalization and standardization tools in dealing with reclaimed wood. Additionally, lack of incentives and stricter policy requirement on reused material utilization are found to be limiting the reclaimed wood use. As mentioned by one stakeholder:
“Regulation definitely does not support circularity. Many regulations are based on the idea that we have virgin construction materials and components, and they do not consider the special issues if we use recycled material. […] you must have licenses and permits to use it because it is a waste, even though it would be technically possible [to reclaim it]”.
What potential solutions are there for boosting the use of reclaimed wood?
Our results highlight harmonization required from EU to national level policy instruments, such as the EU green deal and taxonomy. There is a need for collaboration between public-private partnership, which is a key for the success of reclaimed wood use. This will further assist to develop large scale demo piloting projects, in which the industries can learn together through experimentation. Moreover, reclaimed wood has their own story which may increase the value during business. The language of ‘waste wood’ should be replaced with ‘reclaimed wood’ or ‘recovered wood,’ as the former conveys a negative perception regarding its usability and quality. We also found the necessity of using reclaimed wood in more diversifying way. As addressed by one stakeholder: “Maybe I would like to see a more diversified use. I mean, trying new purposes, maybe experimenting a little bit more boldly, and also seeing value in the old.”
All in all, the renewal of the Construction Act in Finland in 2025 introduces an obligation to report demolished materials, with the help of digital applications for mapping materials and substances in buildings that brings new hope for wood cascading.
Based on our study, the businesses surrounding reclaimed wood in Finland is only emerging, and there remain many barriers. The ambitions, motivations, and willingness of actors will be crucial for mainstreaming reclaimed wood use. By developing intermediary services, including use of digital tools and finding physical places for sorting, cleaning, and storage could reduce the technical challenges of implementing reclaimed wood while effective at tackling market barriers, assure product safety and validity.
Read more
Rahman, M.R., Korsunova, A., Dmitrijeva, A. & Toppinen, A. From Barriers to Solutions for Reclaiming Wood in Construction: a Business Ecosystem Case in Finland. Circ.Econ.Sust. 5, 3551–3574 (2025). https://doi.org/10.1007/s43615-025-00575-7.
Writers
Md. Rayhanur Rahman is a PhD researcher at the Department of Forest Sciences, University of Helsinki. In the Decarbon-Home project and as a part of his dissertation, he analyses local wood-based construction policy network and business ecosystem for reclaimed wood in construction.
Anne Toppinen is a professor of Forest Economics at the University of Helsinki. She was the Decarbon-Home consortium leader during the first project period 2020-2023 and currently acts as a Senior Adviser to the consortium. Her expertise deals with low carbon construction business.
Photo: Md. Rayhanur Rahman
