20 stakeholders met in Brussels in June to discuss the challenges and solutions for new EU emissions trading system for buildings and road transport (ETS2)
This new system, set to begin in 2027, aims to curb carbon emissions from two of the most challenging sectors by placing a price on greenhouse gas emissions. For the construction industry, this means a heightened focus on energy efficiency and sustainable practices. Builders and developers will need to adopt low-carbon materials, optimize energy use in buildings, and integrate renewable energy solutions to comply with the new regulations. The ETS is expected to drive innovation in construction techniques, encouraging the use of technologies like modular construction and smart building systems to reduce emissions.
However, the transition won’t be without challenges. The construction sector, traditionally reliant on carbon-intensive materials like cement and steel, will face increased costs as emissions allowances become more expensive. Smaller construction firms may struggle with the financial burden of compliance, potentially leading to consolidation in the industry. Policymakers are being urged to provide support measures, such as subsidies for green technologies and training programs for workers to adapt to new practices. While the road ahead may be complex, the EU’s ETS for buildings and road transport represents a critical opportunity for the construction industry to lead the way in sustainability, paving the path for a greener built environment.