Ninth Report - European Scrutiny Committee Contents


27 Resource efficiency in the building sector

Committee's assessment Politically important
Committee's decisionCleared from scrutiny

Document detailsResource efficiency opportunities in the building sector (36205), 11609/14, COM(14) 445
Legal base
DepartmentBusiness, Innovation and Skills

Summary and Committee's conclusions

27.1 According to the Commission, the construction and use of buildings in the EU generates a significant proportion of all waste, and gives rise to environmental pressures at different stages in the life-cycle. It has therefore put forward this Communication in order to promote a more efficient use of resources within the sector, and in particular to inform decision making by those involved by providing useable and reliable information.

27.2 The Communication suggests that action should be taken under three main headings: reducing resource use through action at both the design and construction stages; establishing a common European approach to the assessment of environmental performance through a framework on core indicators; and achieving a better functioning market for recycled construction materials by means which include investigating how systemic barriers can be overcome. The Government says that it is already taking steps to improve performance in the building and construction sector, and is not yet clear how a common EU approach would add value. Also, although it would welcome information being provided in a more standardised format, it would not support imposing indicators on business, and it has pointed out that there could be some inconsistencies between the steps envisaged in this document and certain of the changes which the Commission is simultaneously proposing to various pieces of EU waste legislation.

27.3 This document is one of a package of measures put forward by the Commission recently addressing the issues of resource efficiency and waste. Some of these — notably a Communication on a zero waste programme, and a draft Directive amending a number of EU legal instruments — are significant, but, although the document raises some issues which we think it right to draw to the attention of the House, we see no need to hold it under scrutiny.

Full details of the document: Commission Communication: Resource efficiency opportunities in the building sector: (36205), 11609/14, COM(14) 445.

Background

27.4 According to the Commission, the construction and use of buildings in the EU accounts for about half its consumption of extracted materials and energy; generates about one-third of all waste; and gives rise to environmental pressures at different stages in the life-cycle. It has therefore put forward this Communication — which has been produced as one of a package of measures accompanying its Communication[124] on a zero waste programme for Europe — in order to promote a more efficient use of resources within the sector, and in particular to inform decision-making by providing useable and reliable information for those involved.

The current document

27.5 The Communication suggests that action should be taken under three main headings:

·  reducing resource use;

·  establishing a common European approach to the assessment of environmental performance; and

·  achieving a better functioning market for recycled construction materials.

Reducing resource use

27.6 The Commission says that this can be achieved by better design and project planning, promoting more resource efficient manufacturing of construction products (for example, by using recycled materials), and promoting more resource-efficient construction and renovation. In particular, it notes that recycling or re-use is increasingly important, but that the overall balance depends largely on the existence, as a cost-efficient alternative to landfill, of efficient recycling systems which minimise the distances waste is transported. It notes that energy consumption from heating and lighting is covered by a range of EU regulations, whilst energy used in the manufacture of construction products and in the construction process itself not only accounts for 5-10% of total energy consumption, but is also leading to an increasing level of greenhouse gas emissions, and it stresses the need for the whole life-cycle of a building to be considered if impacts are not to be overlooked.

27.7 The Commission goes on to suggest that buildings which are designed and constructed to reduce life-cycle environmental impacts deliver direct economic benefits such as lower operational and maintenance costs and slower depreciation, and that there are also positive social impacts such as improved health and productivity. It observes that, as awareness has increased, and the supply chain has adapted to new requirements, costs have fallen, particularly for the construction of sustainable residential buildings.

Common approach to assessing environmental performance

27.8 The Commission notes that the Roadmap to a Resource Efficient Europe proposed that buildings should be renovated and constructed with greater resource efficiency, requiring policies looking at a wide range of environmental impacts across the entire life-cycle, with the Strategy for Sustainable Competitiveness of the Construction Sector identifying resource efficiency as among the main challenges facing the sector up to 2020 and indicating that the Commission would propose the harmonisation of various existing assessment methods. It also notes that, although a number of instruments have an impact on buildings and construction products, they focus on different aspects, and do not provide an overall life-cycle approach; that, with some Member States pursuing policies linked to life-cycle information, there is a risk of differing indicators being developed; and that, in the private sector, the environmental performance of very few buildings is certified through voluntary commercial schemes. It accordingly concludes that there is a lack of reliable, comparable and affordable data, methods and tools for benchmarking environmental performance, making it difficult to take investment decisions, and leading to inadequate guidance for consumers.

27.9 The Commission therefore proposes that there should be a common framework of core indicators which focus on the most essential impacts. It suggests that this would allow easier communication of information, provide reliable and comparable data for decisions covering the entire life-cycle of buildings, enable clear objectives and targets to be set for building performance, increase awareness of the benefits of sustainable buildings within the industry and among customers, facilitate the transfer of good practice from one state to another, reduce the cost of assessing and communicating the environmental performance of buildings, provide public authorities with relevant data on which to base policy initiatives, and widen the market for sustainable buildings to more countries and to other sectors, such as non-residential buildings. It also suggests that there would be advantages for those associated with the building sector, including architects and designers, manufacturers of construction products, developers and investors, property owners and insurers.

27.10 The Commission goes on to suggest that consideration should as a minimum be given to indicators such as total energy use (including operational energy, and embodied energy of products and construction processes); material use and embodied environmental impacts, durability of construction products, design for deconstruction, management of construction and demolition waste, recycled content in construction materials, recyclability and re-usability of construction materials and products, water used by buildings, the use intensity of (mostly public) buildings, and indoor comfort. However, it points out that, in view of the wide range of buildings in the EU and construction differences, the framework will not cover all aspects of environmental performance, but rather comprise the indicators identified as having the highest environmental impact.

27.11 The Commission adds that the framework will also provide guidance on its implementation, particularly as regards quality and reliability and third party verification, include guidance on the use of indicators, suggest relevant benchmarks of building performance beyond energy efficiency, and allow for the translation of technical indicators into information useful for financers. It also says that the framework, which will need to be both flexible and rigorous, will have to be agreed with Member States and stakeholders, and that the intention is to make it free to use in decision-making at different stages, as well as in policy making.

Improved market for recycled construction products

27.12 The Commission says that special attention will be given to increasing the use of recycled materials and the reduction of construction and demolition waste (where, despite most being recyclable, and the significant resource and environmental benefits, average recovery in the EU is less than 50%, and large amounts are still landfilled or backfilled). It also points to the impact of the failure to internalise the cost of environmental damage in landfill fees or the cost of virgin materials, and the fact that, whilst the costs of processing waste are mostly borne at the demolition phase, the potential benefits from recycled materials generally accrue during production, thus discouraging investment in deconstruction and separation operations. The Commission says that it will investigate how these systemic barriers can be overcome.

The Government's view

27.13 In his Explanatory Memorandum of 22 July 2014, the Minister for Business, Enterprise and Energy (Matthew Hancock) says that achieving improved performance of buildings and the construction process is central to the UK Government's approach to the construction industry through its strategy Construction 2025, and that it is not yet clear how a common EU approach would add value.

27.14 More specifically, he comments that, whilst work to gather evidence and develop a better understanding of the different indicators for sustainable buildings and their construction across Europe is helpful, a framework of common criteria and consistent standards is unlikely to help reduce the costs and burdens of assessment, unless they are mirrored in existing schemes. Consequently, the UK would only welcome an approach which is based on getting better information in a more standardised format to the market, so that decisions are properly informed and associated costs reduced. Nor would it support imposing the use of these indicators on business (the UK has an internationally recognised standard,[125] and it will be for these and other standard owners to decide how to respond to the Commission's work).

27.15 The Minister also points out that the Government has embarked with industry on a four-year programme for sector modernisation, with the key objective of reducing by 20% by 2025 the capital cost and carbon burden from the construction and operation of the built environment. Central to these ambitions is the adoption of information-rich 3D Building Information Modelling (BIM) technologies, process and collaborative behaviours which will unlock new, more efficient ways of working at all stages of the project life-cycle and generate a verifiable data set about the building. He describes BIM as a game-changing technology for the global construction industry, which has been mandated on all government "new build" projects from 2016, and he says that the data it provides will considerably assist in the environmental assessment of buildings, as well as interfacing with existing systems (such as BREEAM) to ease the burden on business. However, he points out that the necessary standards and protocols are not yet in place to allow this to be done consistently, and that, in addressing this, the Government would want to give greater European prominence to the benefits of BIM in relation to environmental standards and frameworks. He also says that, although Building Regulations currently contain requirements relating to sustainability — principally in relation to energy and water efficiency — the UK welcomes the fact that the Communication does not suggest that Member States should be required to regulate further as the primary means of achieving more sustainable buildings.

27.16 Finally, the Minister notes that the Commission will do further work to promote the exchange of best practice on the diversion of construction and demolition waste from landfill and the substitution of virgin materials with secondary materials through charges or regulation, and that, as part of its package of proposals sitting alongside its Commission Communication on a zero waste programme, it has made a separate proposal, which includes a review of the targets contained in the Waste Framework, Landfill, and Packaging and Packaging Waste Directives, as well as amendments aligning definitions, terms and powers. He suggests that there appear to be some inconsistencies between these amendments and the aspirations in this Communication to increase re-use and recycling of waste-derived products or materials in construction. For example, a new definition of backfilling, which would now include the recycling and re-use of "waste used in construction" where this is substituting virgin materials, has the potential to effectively demote all the use of waste-derived products and materials in construction to a recovery operation, lower down the waste management hierarchy, and could reduce incentives to use waste-derived products in construction. Consequently, these changes of definition will need to be clarified before the proposals are acceptable to the UK.

Previous Committee Reports

None.


124   (36203), 11592/14: see Chapter 2 of this Report. Back

125   BREEAM (Building Research Establishment Environmental Assessment Methodology). Back


 
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Prepared 19 September 2014