Transcript Slide 1

Investing in Sustainable Construction
against the crisis - an
overview of national experiences
EBC Annual Congress, 19th June 2009
Antonio Paparella
Unit I5: Construction, pressure equipment and metrology
European Commission
Enterprise and Industry
| 19.06.2009 | ‹#›
Outline of the presentation
• The effects of the crisis on the
construction industry
• The EU Economic Recovery Plan
• National measures to foster a green
economy
• Impact of national recovery measures
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Enterprise and Industry
| 19.06.2009 | ‹#›
Source: Eurostat, June 2009
European Commission
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| 19.06.2009 | ‹#›
Potential effects of the crisis
• Affects short term and long term growth
factors as well:
 Depreciation of skills, knowledge and
expertise in industry, in particular for
sustainable construction
 Reduced prospects for innovation
• But, an opportunity for governments to
foster eco-innovation and to stimulate new
forms of partnerships
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The EU Economic Recovery Plan
• A co-ordinated fiscal stimulus equivalent to
1.5% of the EU-27 GDP (€200 billion)
• Contributes to short-term recovery efforts
while tackling long-run strategic challenges
of structural reforms, i.e. R&D, innovation,
education, infrastructure, greening of the
economy
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Actions relevant to the
construction sector
• Reducing employers’ social charges
• Reduced VAT for labour-intensive services
and « green products »
• Reduced administrative burdens on
business, including delays for payment
• Modernise Europe’s infrastructure
• Improving energy efficiency in buildings
• R & D, innovation and education
European Commission
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National measures
• 800 new recovery measures have been
communicated to the European Commission
(end April 2009)
• About 140 measures particularly address the
construction sector:
 Physical infrastructure: 55%
 Energy efficiency in buildings: 30%
 Other (social housing, training, targeted subsidies, tax
reduction, preferential loans, etc): 15%
• Other measures might impact indirectly on
construction
European Commission
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Energy efficiency
• Combination of tax, soft loans and grants
• Some schemes are specifically targeted at lowincome households
• Some countries have grants for low energy
buildings
• Revision of administrative procedures in some
countries to allow absorption of EU structural funds
• Numerous uncertainties about the timing and
financial envelope of the measures
• Difficult to assess the impact on demand and
supply, innovation and supply chain
renewal/strengthening
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Belgium
• Reduced VAT on new construction (up to
€ 50.000), demolition/reconstruction of dwellings,
social housing, together with increased fiscal
deductions
• Increase of existing fiscal incentives for
investments in energy efficiency
• €30 million for energy efficiency works in housing
(Wallonia)
• PPPs projects for low energy schools (Flanders)
European Commission
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| 19.06.2009 | ‹#›
Spain
• PLAN RENOVE VIVIENDA: subsidies for
the rehabilitation of existing housing and
buildings focused on energy efficiency
(400.000 subsidies) and accessibility
(100.000 subsidies)
• Subsidies for high energy performance new
houses
European Commission
Enterprise and Industry
| 19.06.2009 | ‹#›
France
• « Eco-prêt à taux zéro »: 0% interest
rate loans up to 30 000€ per dwelling for
new construction or renovation matching
technical requirements
• « Eco-prêt logement social »: preferential
interest rate for energy retrofitting of
100000 social housing (2009-2010)
• Income tax credit for works aiming at a
better energy efficiency of the dwelling
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Hungary
• Legislative proposal to decrease VAT on
construction from 20% to 5%
• Simplifying construction regulation,
accelerating construction projects of
national importance
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Italy
• Institution of a Fund to increase the use
of renewable energy and promote
energy efficiency
• Projects for increasing the use of
renewable sources and promoting
energy saving in penitentiares, SMEs,
secondary schools, public buildings,
small islands, protected areas and
sports centres
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| 19.06.2009 | ‹#›
Luxembourg
• More eligible areas related to subsidies for
energy efficiency and renewable energy
sources in buildings
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| 19.06.2009 | ‹#›
Poland
• Amendment of the Energy Law (March
2009), with subsidies and preferential loans
for renovation and investment in renewable
energy sources
• White certificate trading requiring energy
economy from energy providers
• Simplification of administrative procedures
(environmental protection, PPPs) to absorb
more rapidly EU structural funds
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| 19.06.2009 | ‹#›
Czech Republic
• €240 million for PANEL programme
(refurbishment of high rise panel buildings in
state property
• Support of EU funds co-financing for projects
aimed at improving environment in an amount of
CZK 500 million (in the context of the Financial
Perspective from 2004-2006)
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Romania
• Public investment in transport
infrastructure, housing rehabilitation,
health, education, environment, rural
development and tourism (€500 for lowcarbon growth and jobs)
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| 19.06.2009 | ‹#›
UK
• Additional £75 million for “Warm Front”
(insulation and heating improvement for
vulnerable households)
• Installation of 300.000 m² solar panels and
12500 micro-generation units (mini-wind
turbines) in 2009
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| 19.06.2009 | ‹#›
Slovenia
• National Energy Efficiency Action Plan
2008 - 2016 announces financial
instruments for promoting investments
(subsidies, loans with a lower interest
rate, etc) and a series of measures for
improving energy efficiency in the public
sector
European Commission
Enterprise and Industry
| 19.06.2009 | ‹#›
Ireland
• Re-training opportunities for construction
workers in emerging areas such as the
installation of energy efficient and renewable
technologies
• Accelerated Capital Allowances for Energy
Efficient Equipment
• €100 million grants for « Home Energy Savings
Scheme » (roof insulation, wall insulation, high
efficiency boilers and heating control upgrades)
• € 50 million « Warmer Homes Schemes » (low
income private homes and rented local authority
housing)
European Commission
Enterprise and Industry
| 19.06.2009 | ‹#›
Germany
• Increased funds of €3 billion (2009-2011) for
energy efficient refurbishment of schools,
nurseries, sports facilities and other social
infrastructures and large residential estates
• Higher tax deductibility of tradesmen’s services
for maintenance and refurbishment work with a
tax bonus doubled to 20% of €6,000 (=1.200 €)
as of January 2009
European Commission
Enterprise and Industry
| 19.06.2009 | ‹#›
Other countries
• SE: tax deduction for maintenance and
renovation in single family houses and
condominiums
• FI: tax credit for maintenance, repair and
improvement + fixed-term grant for renovation
• DK: raise of annual saving in final energy
demand through collaboration with energy
suppliers
• NL: €395 million for the production of dwellings,
sustain employment in the building sector and
stimulate sustainability
European Commission
Enterprise and Industry
| 19.06.2009 | ‹#›
Conclusion
• Many measures taken by Member States –
a wide variety of national settings
• To what extent will these measures help to
foster demand for sustainable construction
and consolidate the supply to deliver and
innovate? Could the EU contribute to the
development of knowledge on these issues?
European Commission
Enterprise and Industry
| 19.06.2009 | ‹#›