What implications does the European Green Homes Directive have on construction in Italy?

As the construction industry evolves towards a more sustainable future, the European Union’s directives play a pivotal role in shaping the landscape of environmental responsibility. The Green Homes Directive and the Waste Framework Directive, integral parts of the EU’s ambitious climate goals, are transforming how countries approach building and waste management. These directives aim to reduce energy consumption, cut carbon emissions, and promote a circular economy, setting a benchmark for European environmental standards.

For Italy, a country rich in historical architecture and regional diversity, these regulations present a unique blend of challenges and opportunities. As we look ahead, understanding Italy’s position within this regulatory framework and drawing lessons from the experiences of other European countries will be crucial in navigating this green transition more effectively.

EU Green Homes Directive

The EU’s Green Homes Directive, part of the broader Energy Performance of Buildings Directive (EPBD), aims to achieve climate-neutral building stock by 2050. It mandates zero emissions from all new buildings by 2030 and from public buildings by 2028. Given that buildings account for approximately 40% of the EU’s energy usage and over ⅓ of the EU’s energy-related GHG emissions, these goals are both necessary and ambitious.

In Italy approximately 12.5 million buildings can be defined “historic buildings”, as they were constructed before 1945, thereby presenting unique hurdles in implementing the Green Homes Directive. Retrofitting these historical structures to meet nearly zero-energy building (NZEB) standards is both complex and costly. Moreover, Italy’s national building association, ANCE, estimates that achieving the directive’s goals will require upgrading 1.8 million residential buildings over the next 10 years, with an estimated cost of €400 billion. In addition, ANCE forecasts that another €190 billion will be needed to bring commercial properties up to the required standards.

Learning from European neighbours

When comparing Italy’s experience with other European countries, several factors stand out. Northern European geographies, with their robust economies and advanced infrastructure, are better positioned to comply with the Green Home and Waste Framework Directives. Their longstanding focus on energy efficiency and waste management sets a high standard for Italy.

Countries such as Norway, Finland, and Denmark lead in The Green Future Index 2023. These countries prioritise durability and adaptability, using eco-friendly materials that minimise environmental impact. Norway, for instance, has long championed lower-emission building materials and bio-based components, setting a benchmark for sustainable construction practices.

In contrast, Eastern European countries like Bulgaria and Romania face significant challenges due to economic constraints and outdated infrastructure. Their lower GDP per capita limits investments in sustainable housing technologies, and bureaucratic inefficiencies hamper policy implementation. Italy can learn from these varied experiences by adopting best practices from both leading and struggling nations.

Angelica Donati, President of ANCE Giovani and Head of Business Development at Donati S.p.A

Waste Framework Directive

The EU’s Waste Framework Directive is essential for promoting sustainable waste management and a circular economy, significantly impacting the construction sector. This directive prioritises prevention, reuse, recycling, and recovery over disposal, aiming to reduce the environmental impact of waste. Given that the construction industry is one of the largest waste producers, adhering to these principles is crucial.

Italy has long been a leader in the circular economy, extending this leadership to the construction sector. The 2024 Report on the Circular Economy in Italy, presented by the Circular Economy Network (CEN) and ENEA, highlights Italy’s top ranking among the five largest EU economies in circular economy performance. In 2022, Italy achieved a resource productivity rate of €3.70 in GDP for every kilogram of resources consumed, significantly higher than the EU average of €2.50/kg. Italy’s circular material use rate was 18.7%, demonstrating a strong commitment to recycling and the use of secondary raw materials.

Despite these successes, Italy faces challenges in maintaining its leadership position. The report indicates a period of stagnation, with material consumption increasing from 11.8 to 12.8 tonnes per capita over the past five years. To sustain and enhance its circular economy within the construction sector, Italy must invest in innovative construction technologies, enhance public awareness of sustainable practices, and foster stronger public-private sector collaboration. Reducing reliance on critical raw materials by incorporating more recycled materials into construction projects is also crucial.

Bridging traditional and modern techniques

Integrating property and construction technologies offers immense potential for advancing the circular economy and waste management in the construction industry, driving Italy towards greener, more sustainable buildings.

Proptech innovations, such as smart building systems, can enhance energy efficiency by optimising heating, cooling, and lighting based on real-time data. These technologies can also monitor building health, predicting maintenance needs, thus prolonging the life of building components. Contech, on the other hand, encompasses a range of technologies that revolutionise construction processes. Techniques like 3D printing can minimise material waste by precisely creating building components, while drones and AI-driven project management tools can improve site efficiency and reduce resource consumption.

Furthermore, it is possible to merge Italy’s traditional building techniques with these innovative technologies to balance the need for reducing emissions and waste while preserving historical buildings. One successful example is the use of recycled concrete aggregates (RCA) in new construction projects, reducing the need for virgin materials and minimising construction waste. Modular construction techniques, which allow for precise off-site material cutting and assembly, also significantly reduce waste.

Additionally, passive design principles, such as natural ventilation and daylighting, long utilised in traditional Italian architecture, can be augmented with smart building systems to optimise indoor environmental quality and energy usage.

As global sustainability commitments and regulations evolve, they will continue to exert a direct influence on future construction projects and infrastructure trends. Property and construction technologies will undoubtedly play a key role in this modernisation process. Thus, reducing energy consumption, cutting carbon emissions, and promoting a circular economy in the construction sector is as unavoidable as it is logical. The construction sector must continue to innovate to ensure new projects contribute to global efforts to minimise the impact of climate change.