FIEC Newsletter – 25 Απριλίου 2023

On 19 April, FIEC – together with other 8 partners – published a set of Recommendations and principles that should guide the reconstruction of Ukraine.
The joint document is not only addressing the EU, international institutions and Ukrainian national authorities, but also the construction community, particularly those industry players and investors involved in the process, as well as those interested in sounding business opportunities in the country.
Rebuilding in accordance with EU standards in terms of technical, social and environmental aspects (such as energy efficiency of buildings, urban planning, smart mobility) – and with an open eye on issues related to political governance – are part of these recommendations.In July 2022, FIEC and the European International Contractors (EIC) set up the Task Force “Ukraine” to tackle matters related to the reconstruction phase. EU officials, as well as the concerned stakeholders, public bodies and the private sector, have also been invited to take part to the meetings.
One of the Task Force’s key objectives is to ensure coordination among the various on-going initiatives, as well as to share information and best practices at EU and national level.
Read or download the online recommendation, see all co-signatories via the below tab.

Ukraine’s reconstruction and recovery have an estimated cost of USD 411 billion, requiring huge levels of funding from both public and private sources, and are expected to stretch over 10 years. This is also the opinion of Confederation of Builders of Ukraine (CBU) President Lev Partskhaladze. When asked about his own expectations on Ukraine’s reconstruction, he said: “We have positive expectations because we count on international support and some Western countries have already expressed a desire to finance the reconstruction of Ukraine.”Even if the war is ongoing, preparations are already underway for Ukraine’s reconstruction. According to FIEC President, Philip Crampton, “the reconstruction needs to start as soon as possible to get the economy of Ukraine back on track”. FIEC has been active on this issue and in February helped to organise an event in Warsaw, which was led by CBU and launched under the slogan Rebuild Ukraine. It brought together different actors to prepare and participate in the reconstruction of the country once conditions are right to do so. Another event will take place in November this year.

On 18 April, the European Parliament gave its greenlight to the provisional agreement on the revision of the EU Emissions Trading System (ETS).The new ETS will reduce allowances faster and gradually phase out free allowances of some sectors. The overall ambition of emissions reductions by 2030 will be increased to 62% in the sectors covered by the ETS (iron, steel, metals, cement, etc.).

In addition, a new self-standing emissions trading system (ETS II) will be created in 2027 for buildings and road transport.

Moreover, MEPs adopted the interinstitutional agreement on the “Carbon Border Adjustment Mechanism” (“CBAM”), a carbon border tax that will be applied to imports of carbon-intensive products from non-EU countries. MEPs also adopted the “Social Climate Fund”.

On 20 April, the European Commission held a webinar for the “High Level Construction Forum” dedicated to the “green transition of EU construction including life cycle emissions”.Among its agenda points, the Commission reported on the ongoing work on the “EU roadmap for the reduction of whole life carbon emissions in buildings”.

The roadmap, which will build on the work of a dedicated working group and on a study by Ramboll, KU Leuven and the Buildings Performance Institute Europe, is expected to be published as a so-called “Staff Working Document”  by the end of 2023.

The webinar also looked into studies on the climate adaptation of buildings and circular approaches in construction, including future “EU End of Waste” criteria.

On 19 April, the European Commission decided to refer Portugal and Slovakia to the Court of Justice of the European Union for not correctly applying the rules under the Late Payment Directive. This followed two infringement procedures launched in 2017 against both countries.

The Directive requires public authorities to pay their bills within 30 days, or within 60 days in certain cases.

However, and following extensive monitoring procedures last year, the Commission deemed that both Portugal and Slovakia have failed to meet their obligations on numerous occasions.

In addition, the Commission indicated that letters of formal notice and reasoned opinions were sent to Belgium, Greece and Italy for not having correctly transposed nor applied the Late Payments Directive.

Ahead of the vote on MEP Veronique Trillet-Lenoir’s draft report, which is expected to take place on 26 April in the Employment Committee of the European Parliament, FIEC warns against too costly and rigid rules, which would make it very difficult for construction companies to implement them, and eventually play as a deterrent.The protection of health and safety of the workers has  and will always be top priority for FIEC and its members. However, in a Press Release published on 24 April, FIEC advocates for a more realistic approach when it comes to revising the Asbestos at Work Directive: namely to stick to the European Commission’s proposal for a maximum occupational exposure limit (OEL) lowered to 0.01 fibres/cm3, coupled with a transition period of 5 years.