EU Regulation

The Hidden Cost of the Linear Model in Construction, and How the DPP Changes the Maths

Extract, build, demolish. That model has a real cost, and most of it never shows up on a balance sheet until you look for it in the waste and emissions numbers.

Tylko Academy·21 September 2026·7 min read

Construction has run on the same basic model for decades: extract raw material, build something with it, and when it reaches the end of its life, demolish it and start again. Most of what comes out the other end of that last step is waste, not material. That is not a moral failing of any one company, it is what the default model produces when nobody is required to track a product past the point it leaves the factory.

Quick answer: Construction generates almost a third of all waste in the EU, and only around 40% of it gets recycled or reused, well short of the 70% target set for 2020. Buildings account for roughly 42% of EU energy use and 35% of greenhouse gas emissions, and housing alone makes up about 52% of the EU's material footprint. The Digital Product Passport does not fix this by itself, but it changes what becomes trackable: a product's materials and origin become structured data that travels with it, instead of information that gets lost between the factory and the skip.

What the linear model actually costs

"Take, make, waste" is not a slogan invented by a sustainability consultant, it is a fair description of how a construction product typically moves through its life. Material gets extracted, processed into a product, installed in a building, and at the point the building is renovated or demolished, most of that product is not identified, sorted, or reused, it is simply removed. The industry has absorbed this as a fixed cost of doing business for so long that the actual scale of it rarely gets stated plainly.

~33%
of all EU waste comes from construction
~40%
of construction waste is actually recycled or reused
52%
of the EU's material footprint comes from housing alone

Where the waste actually goes

The gap between that 40% recycling figure and the 70% recovery target EU Member States were meant to hit by 2020 under the Waste Framework Directive is not a rounding error, it is most of a decade's target missed. Some of what does get recovered is downcycled rather than reused at the same value, crushed concrete becoming low grade fill rather than going back into new concrete, for instance. The material is technically "recovered," but the maths of the linear model still mostly holds: value goes down at every step, it rarely goes back up.

You cannot recover, reuse, or even count what you cannot identify.

The maths CPR and ESPR are trying to fix

Buildings account for around 42% of the EU's total energy consumption and about 35% of its greenhouse gas emissions, and construction and demolition together use close to half of all resources extracted globally. That is the scale of the problem two coordinated EU regulations are aimed at: ESPR, the Ecodesign for Sustainable Products Regulation, which we covered in our ESPR explainer, created the Digital Product Passport concept as a horizontal, cross sector mechanism. The revised CPR, the Construction Products Regulation covered in our CPR explainer, is the construction specific route through which a building product actually gets one.

What the DPP actually changes

The Digital Product Passport does not, on its own, make a product recyclable or reduce how much material a building uses. What it changes is more basic and, longer term, more consequential: it makes a product's materials, origin, and end of life options into structured data that stays attached to the product, rather than information that exists briefly on a spec sheet and then disappears by the time anyone is standing in front of that product at demolition, deciding what to do with it. A demolition contractor who can actually identify what a material is, and what can be done with it, is the precondition for closing the loop the linear model currently leaves open. Without that identification step, none of the rest, recycling targets, recovery rates, circular procurement, has anything to work with.

Why this matters now, not later

None of this is theoretical or years away. Mandatory GWP declarations for selected construction products already began on 8 January 2026 under the revised CPR, and the shared EU DPP registry has been operational since 19 July 2026. The maths behind the linear model is not going to improve on its own, and it has not improved much over the last two decades of voluntary sustainability commitments. What is different now is that the data underneath it is becoming a legal requirement rather than a nice to have, which is the actual subject of Lesson 1.1 in our DPP course.

DPP

This is exactly where our new DPP course starts. Building the Future with the Digital Product Passport opens the full picture, from the climate case in Module 1 through to what actually goes into a passport and how it connects to BIM. Enrollment is open now.

Frequently asked questions

What is the "linear model" in construction?

The linear model is the extract, build, demolish cycle construction has run on for decades: raw materials go in, a building comes out, and at end of life most of what's left goes to waste rather than back into use. It is the default the industry is built around, not a deliberate choice most companies made.

How much of the EU's waste actually comes from construction?

Construction accounts for almost a third of all waste generated in the EU, and only around 40% of that construction and demolition waste is currently recycled or reused, well short of the 70% recovery target Member States were meant to hit by 2020 under the Waste Framework Directive.

What share of emissions and material use comes from buildings?

Buildings account for around 42% of the EU's total energy consumption and about 35% of its greenhouse gas emissions. Housing alone makes up roughly 52% of the EU's material footprint, and buildings and construction together use close to half of all resources extracted globally.

How does the Digital Product Passport change this?

The DPP does not reduce waste by itself. What it changes is what becomes countable: a product's materials, origin, and end of life options become structured data attached to the product, instead of information that gets lost between the manufacturer, the site, and demolition. You cannot recover or reuse what you cannot identify.

Is the DPP the same thing as an EPD?

No. An Environmental Product Declaration reports a product's environmental impact at a point in time. The DPP is a structured, machine readable record that travels with the product and can be checked, referenced, and updated across its life, including at demolition, which is exactly the point where the linear model currently loses the most information.

Which regulations are actually driving this?

Two coordinated EU regulations: ESPR, the general Ecodesign for Sustainable Products Regulation, which created the Digital Product Passport concept, and the revised CPR, the Construction Products Regulation, which is the mechanism through which construction products actually get a passport in practice.

Next time a building near you comes down, do you know how much of what's inside it is actually identified well enough to be reused, or does it just become "debris"?
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