Technical and Environmental Commission (TEC)

Brief description and main aims: 

he Energy Performance of Buildings Directive (EPBD) is the EU's main legislative instrument for improving the energy performance of buildings in the EU. It was revised in the last legislative period with the aim of significantly reducing greenhouse gas (GHG) emissions and final energy consumption in the buildings sector by 2030 and setting a long-term vision for a climate neutral EU buildings sector by 2050. In this context, the recast EPBD aims to increase the rate and depth of energy-efficient building renovation, to improve information on the energy performance and sustainability of buildings, to ensure that all new buildings meet ambitious minimum energy performance standards, and to ensure that all buildings in the future are in line with the 2050 climate neutrality requirements. The EPBD sets minimum requirements for non-residential and residential buildings with a “worst first” approach, meaning that worst-performing buildings are likely to undergo some form of renovation first. It also requires Member States to phase out fossil fuel based boilers by 2040 and to define a pathway to progressively reduce the “global warming potential” of buildings over their life cycle.

The recast EPBD builds on the 2020 EU Renovation Wave strategy, which aims to at least double the annual renovation rate in the EU by 2030. It is part of a broader legislative package ("Fit for 55") to reduce emissions in the EU by 55% by 2030.

Why FIEC is dealing with this topic: 

Buildings account for about 40% of energy consumption and 36% of CO2 emissions in the EU. Currently, about 35% of EU buildings are over 50 years old and almost 75% of the building stock is energy inefficient, while only 0.4-1.2% of the building stock is renovated each year. Therefore, the renovation of existing buildings has the potential to lead to significant energy savings. Investments in energy efficiency can boost the construction industry, and SMEs in particular would benefit from a stimulated renovation market. The recast EPBD also sets out the conditions for calculating the whole-life carbon emissions (WLC)/life-cycle global warming potential (GWP) of new buildings. As part of the Renovation Wave, the European Commission has committed to developing a roadmap to 2050 for reducing the whole-life carbon emissions of buildings.

The 'Fit for 55' package has great potential for the construction industry, but will also have a far-reaching impact on the construction supply chain, as the proposed legislation affects the entire lifecycle of buildings.

A summary and analysis of the “Fit for 55” package and the European Green Deal is available on the FIEC website and intranet. FIEC has welcomed the “Fit for 55” package and the new EPBD, but has repeatedly warned about the high up-front costs of renovation, the lack of skilled labour and the impact of the EPBD on construction costs.

Brief description and main aims: 

Climate change is the most pressing issue of our time and the greatest existential threat to the world, including Europe, which is the fastest warming continent in the world. Climate risks threaten the Union's energy and food security, ecosystems, infrastructure, water resources, financial stability and human health. According to the EU, many of these risks have already reached critical levels and could become catastrophic if urgent and decisive action is not taken.

This is why the European Commission launched its new sustainable growth strategy, the European Green Deal, in 2019, with the aim of putting Europe on a path to climate neutrality by 2050 and transforming it into a circular economy. In its report 'Towards climate neutrality: progress, policy gaps and opportunities', the European Scientific Advisory Committee on Climate Change warned that additional measures are essential if the EU is to achieve its climate neutrality target by 2050.

Why FIEC is dealing with this topic: 

In April 2024, the European Court of Human Rights ruled that failure to act on climate change is a clear violation of human rights, a decision that could open the floodgates to a number of new court cases around the world, with implications for industry in the EU.

The built environment is also particularly vulnerable to the effects of climate change: More frequent and extreme weather events increase the risks to Europe's built environment and critical services, including energy, water and transport. While coastal flood risks in Europe are relatively well managed, sea level rise and changes in storm patterns can have devastating impacts on people, infrastructure and economic activity. In southern Europe, heat and drought pose significant risks to the economy.

The EU will have to learn to live with climate change and adapt to its impacts while continuing to mitigate them. However, implementing new environmental legislation and changing business models comes at a cost, which can have a negative impact on the competitiveness of European contractors. FIEC has therefore called on EU legislators to strike the right balance between climate change measures and industrial competitiveness.

Brief description and main aims: 

Under the European Green Deal, Europe’s new sustainable growth strategy, the European Commission has put forward several proposals to restore nature and biodiversity and to protect European soils. The proposals for a Nature Restoration Law (published in June 2022) and the EU Soil Monitoring Law (published in July 2023) both build on the EU Biodiversity and Soil strategies and the Zero Pollution Action Plan, the Forest Strategy, and other communications under the EU Green Deal strategy.

The Nature Restoration Law requires Member States to put in place nature restoration measures with the aim to jointly cover, as a Union target, at least 20% of land and 20% of the sea areas by 2030. Restoration measures shall be in place on at least 30% by 2030 of the total area of all habitat types listed in the Regulation that is not in good condition and on at least 60% by 2040 and 80% by 2050. It also requires governments to draw up national restoration plans.

The Soil Monitoring Law aims at achieving healthy soils in the EU by 2050 and at restoring the basic functions of soil so that they can contribute to address the EU’s objectives of achieving climate neutrality and becoming resilient to climate change.

Why FIEC is dealing with this topic: 

Despite efforts at EU and global level, biodiversity loss and ecosystem degradation continue at an alarming rate, harming people, the economy and the climate.This has been widely documented, for example in reports by the Intergovernmental Panel on Climate Change (IPCC). There is therefore an urgent need to restore nature and biodiversity in the EU by setting common EU targets.
However, the proposal for a Nature Restoration Law envisaged major interventions in land use and urban spatial planning without taking into account different societal interests, such as demographic growth, the great uncertainty about raw materials and the need for self-sufficiency, (social) housing and climate resilience. In particular, setting binding targets for the increase of green areas in certain ecosystems could make it more difficult to build critical and energy infrastructure, houses or extract raw materials in EU countries, thereby making the EU strategically independent.

These shortcomings have been addressed: The final text takes into account socio-economic interests and local conditions.

The proposal for a Soil Monitoring Directive would require EU countries to regularly monitor and assess the quality and health of their soils. It introduces new EU-wide definitions of "artificial land", "land take" and the so-called "land take mitigation principles".

Brief description and main aims: 

Carbon capture, utilisation and storage (CCUS) involves the capture of CO2, typically from large point sources such as power generation or industrial facilities that use either fossil fuels or biomass as fuel. If not used on site, the captured CO2 is compressed and transported by pipeline, ship, rail or truck for use in a variety of applications or injected into deep geological formations.

CCUS can be retrofitted to existing power and industrial plants, allowing them to continue operating. It can tackle emissions in hard-to-curb sectors, particularly heavy industries such as cement or steel, which are widely used as construction materials.

The European Commission has published plans for 'industrial carbon management' in Europe, including the development of a dense CO2 transport network. CCUS is seen as an integral part of the EU's strategy to reduce CO2 emissions by 90% by 2040 (proposed target for 2040) and become carbon neutral by 2050.

Why FIEC is dealing with this topic: 

CCUS can be retrofitted to existing power and industrial plants, allowing them to continue operating. It can address emissions in hard-to-abate sectors, particularly heavy industries such as cement or steel, which are widely used building materials. CCUS can therefore help the sector as a whole to reduce or even 'capture' its emissions, particularly the embodied carbon created in the production phase of building materials.

In addition, many construction companies provide services such as the construction of CO2 transport networks and storage sites. A European framework for carbon management would therefore be a business opportunity for contractors.

Brief description and main aims: 

Over the years, the EU has adopted several pieces of legislation in the field of water protection and quality. The EU's main objective is to ensure that all Europeans have access to good quality and sufficient water, and to guarantee the good status of all water bodies throughout Europe. EU legislation aims to ensure that water is managed sustainably in the long term, that water pollution is reduced and that aquatic ecosystems are protected. Since 2000, the EU's Water Framework Directive (WFD) has been the main piece of water legislation in Europe.

The WFD has been complemented by other legislation such as the EU Groundwater Directive, the Drinking Water Directive, the Floods Directive, etc. While these policies have primarily focused on water quality, pollutants, etc., water quantity management, scarcity, droughts and other extreme weather events are now receiving more attention but lack a comprehensive strategy and vision to address them. In 2023, the CCMI (Consultative Committee for Industrial Changes), one of the bodies of the European Economic and Social Committee (EESC), published plans and a declaration for an "EU Blue Deal" to make the water crisis a policy priority for the next Commission (2024-2029).

The President of the European Commission von der Leyen indicated that “Water Resilience” will be among the priorities of the new Commission during the period 2024-2029.

Why FIEC is dealing with this topic: 

FIEC has supported the call for an EU Blue Deal for several reasons:

• Water stress (i.e. a situation in which the demand for water exceeds the amount available during a given period) has become an urgent problem, especially in Southern and Western Europe, and will become more frequent with climate change. A major factor contributing to water scarcity and loss is leakage from water networks: On average, 25% of treated water is lost in public water supplies in Member States. The 6.5 billion m3 lost annually at EU level is equivalent to the combined consumption of entire Member States such as France and Germany. This is why FIEC has called for the urgent treatment of water leakage and for increased investment in the repair and maintenance of water supply networks, a service offered by many construction companies.
  
  
• Extreme weather events such as heavy rainfall and flooding are also becoming more frequent, posing huge challenges to the built environment and resulting in incredible damage and high insurance costs. Flood defenses and other flood management systems are needed to deal with these extreme events. Contractors are also heavily involved in the construction of this type of infrastructure.
  
  

• Water challenges (water stress and floods) are a direct threat to society, economy and industry. Investing in Europe's old water infrastructure is therefore seen as an investment in Europe's overall prosperity.

  Construction sites use a limited amount of water compared to other sectors. Manufacturing and sectors such as agriculture consume much more. To better tackle this problem, FIEC has called for a sectoral approach, with milestones and roadmaps for each sector. Construction companies offer a wide range of services in the water sector: Construction of water treatment plants, distribution networks, desalination plants, sluice gates, etc. For this reason, the EU Blue Deal would also be a huge business opportunity for the sector.

Construction sites use a limited amount of water compared to other sectors. Manufacturing and sectors such as agriculture consume much more. To better tackle this problem, FIEC has called for a sectoral approach, with milestones and roadmaps for each sector. Construction companies offer a wide range of services in the water sector: Construction of water treatment plants, distribution networks, desalination plants, sluice gates, etc. For this reason, the EU Blue Deal would also be a huge business opportunity for the sector.