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Green Legislation: FIEC Calls on EU Institutions to thoroughly Analyse Impact on new Housebuilding


26 Oct 2023


Development Policy
Against the background of the spreading housing crisis and low investment levels, FIEC considers it indispensable to thoroughly analyse all potential impacts of upcoming environmental legislation on new housebuilding. 
Implementing the Green Deal comes on top of already difficult economic context
Under the European Green Deal, the EU’s new growth strategy, the Von der Leyen Commission has so far introduced far-reaching legislation on energy efficiency, renewable energy, carbon pricing, circular economy and sustainable transport. The implementation of this new legislative package at Member States level is expected to have a considerable impact on construction costs in the short to medium term. 
This comes on top of an already unfavourable economic context, marked by high interest and inflation rates and a lack of permits for building new houses in Member States. Several EU countries are currently facing a significant housing shortage and a decline in new infrastructure projects. In Germany, the projected housing shortage is expected to reach 700,000 by 2025. It is the worst housing crisis the country has seen in 20 years. In France, housebuilding has dropped to levels not seen since 2010. Sweden, Denmark, Belgium and Hungary are also experiencing a cooling of their housing markets.
“Against this background, it is vital that we now see a shift from proposing new green legislation towards implementing what has already been agreed at EU level and towards reducing bureaucracy while paying particular attention to the costs of construction and renovation”, Stephanos Pierides, chairman of FIEC’s sub-commission on environmental affairs, says.
Proposals still under discussion: Impact on new housebuilding should be carefully evaluated
The proposals on improving the energy performance of buildings, on nature restoration targets and on monitoring soil health are still under discussion. 
Considering the difficult economic context, FIEC calls on legislators to carefully evaluate all potential impacts on the construction sector of any additional measures that could make construction projects even more burdensome and costly. 
In its position paper on the latest European Commission proposal for a Soil Monitoring Law, published today, FIEC reiterates this call.
“We fully support the objective of monitoring and improving the state of soils, but the potential implications of the proposed “land take mitigation principles” for new construction projects should not be underestimated. A thorough analysis of all these implications on economic activity is indispensable in order to take appropriate measures if necessary”, Pierides concludes.


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