Material Recovery Right


Development of an innovative asset class as a financial incentive to implement circular value creation in the real estate sector

Moringa by Landmarken AG Copyright: © Moringa

Participating Institutes:

Lehrstuhl für Controlling, RWTH Aachen

Moringa GmbH by Landmarken AG


BBSR, ZukunftBau Forschungsförderung

Project description

The project aims to decouple building and material ownership to open up a new market for reused building material by trading the material recovery right. This is done by the development of a model in which the residual value of components for circular buildings is to be determined and a tradeable certificate system is to be developed as an incentive-compatible pricing structure. The goal behind the project is to set financial incentives for real estate developers by using materials, which generate revenue at the end of life as they are reused after the life cycle of the building. The centrepiece of the MRR model is the MRR certificate, which serves as material passport and obligation to dismantle the building at the end of its lifetime according to the dismantling guidelines. The MRR certificate is then sold by real estate developers and traded on a marketplace. MRR Investors can benefit from price increases of raw materials and real estate developers have an incentive to consider the dismantling phase during the planning process despite the additional efforts required. The project contributes to the promotion of circular building through financial incentives by assigning an investment value to building elements right at the beginning of the life cycle, thus ensuring that building products retain their economic value.

First application

MRR will be applied on a façade system of Moringa in Hamburg HafenCity. The façade system used in the building is mainly made of wooden elements, ceramic, tiles as well as reinforced concrete. During the scope of the project detailed information of dismantlability and suitability for reuse and recycling will be analyzed for the MRR certificate.