Real estate & construction, public procurement & ppp

The impacts of the new EU Regulation on Ecodesign Requirements for Products

EU Regulation 2024/1781 on Ecodesign Requirements for Products, established on 13 June 2024, aims to create a comprehensive framework for enhancing product sustainability throughout their lifecycle. This regulation is a pivotal component of the EU's Green Deal and Circular Economy Action Plan, addressing the need to transition from linear production and consumption models to a circular economy. It sets out ecodesign requirements to improve product durability, reliability, reparability, upgradability, reusability and recyclability. It also aims to reduce hazardous chemicals in products, enhance energy and resource efficiency, and minimise waste generation. This regulation has significant implications for public procurement, particularly in the construction sector, which is a major consumer of materials and energy.

Impact on the construction industry and materials

The construction industry, known for its significant environmental footprint, will be notably impacted by this regulation. Construction materials such as cement, steel and aluminium are prioritised in the regulation's first working plan. The regulation mandates that these materials meet stringent ecodesign requirements, including improved energy efficiency, reduced CO2 emissions, and increased use of recycled content. For instance, the regulation stipulates that by 1 January 2030, specific ecodesign requirements for cement must be established if existing measures are deemed insufficient.

Impact on public procurement in the construction sector

Contracting authorities and entities must now align their procurement processes with the regulation's environmental sustainability criteria. This requires that public contracts for construction projects comply with the minimum requirements set out in the regulation, which are designed to incentivise the supply and demand for environmentally sustainable products. For instance, the regulations mandate that contracting authorities and entities award public contracts to those meeting the highest performance standards. Award criteria might include a specific weighting for environmental factors, such as the recycled content of materials, which could significantly influence the outcome of tendering processes. Recognising the potential challenges for small and medium-sized enterprises (SMEs) in meeting these new requirements, the regulation includes provisions for support. Member States are encouraged to provide financial support, access to finance, and specialised training to help SMEs adapt to the new ecodesign requirements.

Challenges ahead

The construction industry will face several challenges in adapting to these new requirements. First, significant investment in research and development will be needed to innovate and produce materials that meet the new ecodesign standards. Additionally, the industry must navigate the complexities of integrating recycled materials without compromising the structural integrity and performance of construction products.

Another challenge lies in the implementation of the digital product passport, which will provide detailed information on the environmental impact and sustainability of construction materials. Ensuring accurate, comprehensive and up-to-date information across the entire supply chain will require robust data management systems and collaboration among various stakeholders.

While the EU Regulation on Ecodesign Requirements for Products poses challenges for the construction industry, it also presents an opportunity to lead in sustainability and innovation. By embracing these changes, the industry can contribute to the EU's climate and environmental goals and foster a more sustainable future. Through green public procurement, high product performance standards and support for SMEs, the regulation aims to significantly enhance the environmental sustainability of construction activities.

authors: Johannes Stalzer, Constantin Benes