Today, the Construction 2050 Alliance hosted a public event on Sustainable Finance and the impact of the EU taxonomy on the construction sector.
On this occasion the Alliance shared the following 6 key messages.
1.The Taxonomy underlines again the construction sector’s huge
potential for achieving the EU Green Deal goals.
The taxonomy once again underlines the industry’s enormous potential for contributing to the EU’s sustainability and climate objectives, in particular as regards circular economy, and making the block climate neutral by 2050.
2.The Taxonomy may offer a European approach of “sustainable construction” based on existing EU Regulations and European sustainability assessment standards, but some criteria should be improved, and reporting methodologies clarified.
A dialogue should be established between the European Commission and the
construction sector to improve problematic criteria, as well as to facilitate the
exchange with industry on how to report taxonomy alignment and eligibility.
Many companies lack clear guidance on how to make full use of the current
standards under the climate delegated act.
3.The Taxonomy can set a new benchmark for competitiveness of
the construction sector.
It sends important signals out to companies about which construction products
and practices they can offer to foster their competitiveness in the internal market.
This will also help drive innovative solutions in construction and foster circular
economy.
4.The Taxonomy must create the conditions of mobilising capital to
support the transition to sustainable construction.
It is important that the criteria are designed in such a way that they enable a fair
assessment of construction products, systems and buildings, according to their
contribution to the environmental objectives, and that they properly consider the
complex nature of building solutions, therefore rewarding all manufacturing,
construction and service activities necessary for the achievement of the
environmental objectives.
5.Sustainability reporting obligations under the Taxonomy must be
simple and proportionate.
It is if of the highest importance that the reporting requirements are proportionate,
and sufficient time must be given to SMEs to adapt to the new reporting rules. The
Commission should provide clear guidance and even set up a Help Desk to help
companies interpret the requirements they will face in reporting.
6.Non-alignment with the Taxonomy must not cut off companies
from financing and funding.
The C2050 Alliance believes that the ‘sustainability’ of a company should not be
assessed solely based on the eligibility and alignment of its economic activities to
Taxonomy.
Non-alignment must not lead to discriminatory practices from investors and cut
off companies from financing, at a time when the sector faces unprecedented
challenges (e.g., rising material prices and costs of living of clients, shortage of
workers and skills, investment needs to scale up innovative low carbon solutions,
absence of low carbon infrastructures at scale, …).
The EU Taxonomy must become a facilitator of the green transition and
enable the construction sector to effectively contribute to the EU’s climate
targets. Non-alignment must not cut off construction products
manufacturers and construction companies, especially the vast majority
of SMEs composing the industry, from financing.
