FIEC European Construction Industry Federation Energy Environment and

FIEC European Construction Industry Federation Energy, Environment and Sustainability EURIMA General Assembly Prague 02/06/2005 by John Goodall Director Technical and Environmental Affairs

NORWAY DENMARK FINLAND created in 1905 27 countries 27 34 federations 34 NETHERLANDS SWEDEN UNITED KINGDOM SWITZERLAND POLAND ESTONIA enterprises of - all sizes - all kinds of building and civil engineering activities IRELAND GERMANY CZECH REPUBLIC BELGIUM SLOVAKIA LUXEMBOURG ROMANIA SLOVENIA BULGARIA FRANCE TURKEY Full Member PORTUGAL AUSTRIA GREECE ISRAEL SPAIN Observer Co-operation Agreement ITALY HUNGARY CYPRUS

FIEC European Construction Industry Federation l 34 national member federations, representing companies ¾ all sizes (97 % less than 20 operatives) ¾ all kinds of building and civil engineering activities ¾ all working methods: separate trades, general contractors, sub-contractors

The construction industry (EU 22) l Total construction in 2004: 1 004 billion € l appr. 10 % of GDP l 50, 8 % of Gross Fixed Capital Formation l cross-border activies: appr. 2 %

The construction industry (EU 22) 2, 4 million enterprises - 10 10 -20 operatives 20+ operatives

The construction industry (EU 22) 14 million operatives l 7, 2 % of Europe's total employment l largest industrial employer in Europe (28, 5 % of industrial employment) l R+M activities now exceed 50% of construction output in some countries

Competitiveness of the Sector l 1992 -1994 - Secteur Study (Atkins Report) l 04/11/1997 - Commission Communication l 31/05/1999 - Action Plan « Joint Priorities » l Tripartite Working Groups (Commission, member states and industry)

WG « Sustainable Construction » - 4 TASK GROUPS: § TG 1 – Environmentally friendly construction materials § TG 2 – Energy efficiency in buildings § TG 3 – Construction and demolition waste § TG 4 – Life cycle costs of buildings

WG « Sustainable Construction » - Results to date of the 4 TASK GROUPS: § TG 1 – Environmental Product Declarations (now being developed in CEN) § TG 2 – Energy Performance of Buildings Directive (awaiting implementation) § TG 3 – Revision of the WFD (still awaited) § TG 4 – CEC Proposal for a harmonised framework to facilitate the development of software tools to estimate LCC on a European basis

Other current activities in the field of the Environment l Revision of the Waste Framework Directive l Revision of the Batteries Directive l FIEC position paper on REACH l FIEC Principles for Sustainability (CSR)

Meeting the KYOTO Targets: What can FIEC and EURIMA do better together?

Meeting the KYOTO Targets: 1. Clarify the EPBD What kind of inspections are required for boilers and a/c installations and who qualifies as an “independent” expert? Ø Ø Ø Probably only visual inspections and no testing Meaning of “independent” not clear. Possibly implies no commercial interest in carrying out remedial works? Will this exclude construction firms from certifying boilers and a/c systems?

Meeting the Kyoto targets: 2. Retain the reduced level of VAT Reduced VAT Directive (99/85/CE of 22. 10. 1999) Ø B, E, F, I + P have, since 2000, been applying reduced VAT rates on labour intensive services including renovation + maintenance of dwellings Ø Temporary measure will end on 31/12/2005: A, D, DK, SK + S are against its renewal

Meeting the Kyoto Targets Retain the Reduced Level of VAT! l l l 250, 000 Jobs threatened in 2006 ! Many of these could otherwise be installing insulation in existing buildings ! Unanimity required in the Council !

Meeting the KYOTO Targets: Too many sticks, when what we need is CARROTS !! Ø Ø Ø Fiscal incentives Funding and incentive schemes Amending the EPBD to link energy certificates to tax credits/reduced VAT/subsidised loan schemes, etc

Meeting the KYOTO Targets: 3. Stop the Member States Taxing Their Declared Objectives: Ø Ø Ø Eliminate or reduce VAT Promote personal income tax abatements Offer subsidised loans for energy efficiency improvements

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