Sustainability Trends and Challenges for the construction materials industry

Oliver Rapf Executive Director EURIMA General Assembly Munich, 1 June 2012

Some key figures of your market

Europe’s buildings under the microscope

A country-by-country review of the energy performance of buildings

Total floor area of buildings

Total useful floor area:

• 24 billion m2 for EU 27

• 25 billion m2 with Norway and Switzerland

added.

The 5 most populated countries (DE, FR, UK,

IT and ES) account for 65% of total floor

space.

Floor space distribution per country

Floor space distribution per region

Europe’s buildings under the microscope

A country-by-country review of the energy performance of buildings

Residential age profile

• Variations in the age profile between the 3

regions are relatively small. Nonetheless,

older buildings (before 1960) have the

biggest share in the North & West region

• It is evident that all countries experienced

a large boom in construction between

1961 and 1990 (with a few exceptions,

the housing stock more than doubled in

this period)

• Countries with the biggest share of

recently constructed buildings (1990-

2010) appear to be Ireland, Spain, Poland

and Finland.

• Countries with the biggest share of

residential stock dating from 1961 to 1990

seem to be Estonia, Hungary, Latvia and

Finland. Age profile of residential floor space

EE: Data only from 1951 onwards. IT: Data excludes heritage buildings before 1950. LT: Data only from 1941 onwards. ES: Data excludes secondary houses SE: Data only from 1921

Europe’s buildings under the microscope

A country-by-country review of the energy performance of buildings

Final energy consumption in buildings

The final energy consumption has had a 50% increase in electricity and gas use and a

decrease in use of oil and solid fuels by 27% and 75%, respectively.

Overall, the energy use in buildings has a rising trend with an increase from around

400 Mtoe to 450 Mtoe over the last 20 years. This is likely to continue if insufficient

action is taken to improve the performance buildings.

Historical final energy consumption in the building sector since 1990 for the EU27, Switzerland and Norway

Source: Eurostat

Solid Fuels

Oil

Gas

Electricity

RES

Derived heat

Average Annual Growth Rate of CO2 Emissions

from Energy Use in Buildings

6

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

Europe USA India China ROW World

Ave

rag

e A

nn

ual

Gro

wth

Rate

1971-09

2000-09

Source: Mark D. Levine, LBNL

Trends that influence your industry…

… and resulting challenges…

Trend # 1

There will be an increase in renovation activity

EU Roadmap for moving towards a competitive

low-carbon economy in 2050

GHG Reduction vs. 1990 2005 2030 2050

Total -7% -40 to -44% -79 to -82%

Power -7% -54 to -68% -93 to -99%

Industry -20% -34 to -40% -83 to -87%

Transport 30% +20 to -9% -54 to -67%

Residential and Services -12% -37 to -53% -88 to-91%

Agriculture -20% -36 to -37% -42 to -49%

Other non-GHG emissions -30% -72 to -73% -70 to -78%

High sectorial targets for the buildings sector!

0%

20%

40%

60%

80%

100%

2010 2015 2020 2025 2030 2035 2040 2045 2050

% r

en

ova

tio

ns

by

de

pth

Deep Renovation Path

NZEB

deep

moderate

minor

Europe’s buildings under the microscope

A country-by-country review of the energy performance of buildings

Renovation depths

Europe’s buildings under the microscope

A country-by-country review of the energy performance of buildings

Renovation speeds

Renovation rates profiles considered over time

Europe’s buildings under the microscope

A country-by-country review of the energy performance of buildings

0

20

40

60

80

100

120

140

2011 2015 2020 2025 2030 2035 2040 2045 2050

An

nu

al In

vest

me

nt

(€b

n)

- N

OT

DIS

CO

UN

TED

Investment Profile

baseline

Slow & shallow

Fast & shallow

Central

Deep

2 stage

Challenge # 1

Prepare for an increase in renovation activity!

Prepare for increased investment in production and distribution facilities

Train builders and other trades in proper use of products

Invest in R&D to develop products that enable deep renovation of different

building types

Etc…..

Trend # 2

Nearly Zero Energy Buildings will become reality

within 8 years

• Today, the majority of a building’s energy demand comes from the building operation phase.

• Once we move towards nZEB, the energy consumption during construction and demolition phases will become comparable with the one during the operational phase.

Building energy demand over a building’s life cycle

Phase 1 Construction

Phase 2 Operation

Phase 3 Demolition/disposal

Within EPBD scope

30% 40% 30%

5%

90%

5%

Today’s energy consumption (approximation)

Future energy consumption

nZEB Heating/Cooling reduced by 90%

Challenge # 2

Reduce the embedded energy in

building materials, as its relative share

in a building lifecycle is increasing.

This is an important strategy to

decrease the overall ecological footprint

of a building.

Trend # 3

Europe is undergoing a significant demographic

change.

Europe’s aging society

Source: COM (2006) 571: The demographic future of Europe – from challenge to opportunity

Challenge # 3

Buildings will have to be adapted to

changing needs of its occupants

Building materials may have to become more “modular” to deliver flexibility in

space use patterns

Rebuilding may become much more common, building materials will have to

allow for easy demolition and reuse

Trend # 4

Resource efficiency is gaining political attention.

Global Resource Use

40,000,000,000 tons in 1980

65,000,000,000 tons in 2010

82,000,000,000 tons expected in 2020

Source: Ellen MacArthur Foundation: Towards a circular economy

US: ONLY 20 – 30% of Construction and

Demolition waste is recycled or reused!

EU15 (1999): 28% of CDW recycled!

Sources: For US: Ellen MacArthur Foundation: TOWARDS A CIRCULAR ECONOMY. For EU: CONSTRUCTION AND DEMOLITION WASTE MANAGEMENT PRACTICES, AND THEIR ECONOMIC IMPACTS. Report by Symonds, 1999

EU15 (1999): 28% of CDW recycled!

Sources: WASTE MANAGEMENT PRACTICES, AND THEIR ECONOMIC IMPACTS. Report by Symonds, 1999 And European Environment Agency 2002: technical report 69

DG Environment:

Roadmap to a resource efficient Europe

Milestone:

• By 2020, renovation and construction to high resource

efficiency levels, with Life-cycle approach

• All new buildings will be nearly Zero Energy Buildings and

highly material efficient.

• Policies for renovating the existing building stock will be in

place, at a rate of 2% per year.

• 70% of non-hazardous construction and demolition waste

will be recycled.

• stimulate demand and uptake of resource efficient building

practices through life-cycle costing

Challenge # 4

Make the Circular economy happen!

Design

materials for

easy

dismantling

Construct

materials with

a long life time

Compose

materials in a

way that they

can be reused Source: Ellen MacArthur Foundation: Towards a circular economy

Trend # 5

Clean technology markets are dynamic.

BUT:

Clean technology markets are

dominated by renewables!

Segmentation of the global clean tech market Source: Clean Economy, Living Planet. Report by WWF and Roland Berger Strategies, June 2012

Challenge # 5

How to ensure more attention on energy

saving technologies, products and

services?

How to boost this market in the EU?

Trend # 6

Sustainability in all its dimensions is

becoming increasingly important for the

construction industry.

Dimensions of Sustainable Construction

• Location impact of building site

• Sustainability properties of building materials

• Energy performance of the building

• Integration of renewable energy systems

• Resource use during occupancy phase

• “Redesign-of-use options” (modular design – aging

society – adaptability of building)

• Post-occupancy: Impacts of

demolishment/recyclability

• Contribution to sustainable urban design and spatial

planning

Challenge # 6

Integrate all these challenges in a

sustainability strategy for your industry!

• Increase in energy saving renovation measures is going to happen – the

question is how fast and how deep?

• The construction material industry will have to play a key role in contributing to

solve a range of problems of our age – from energy security via energy

efficiency to demographic change to mainstreaming sustainability.

• The market for energy efficiency technology and products will grow, but the

political support to grow the market is still fragile. Your industry needs to show

what it can deliver to support large efficiency gains in the building sector.

• With the regulation for Nearly Zero Energy Buildings entering into force in a few

years, the question of embedded energy in construction materials is becoming

more important!

• Life cycle thinking for buildings and buildings materials is becoming increasingly

important – industry needs to show that it is managing the issue.

• A proactive positioning of your industry based on scientific facts is a strategic

interest!

To summarize…

Thank you

for your attention!

Please check

www.bpie.eu

and

www.buildup.eu

for news and reports.