Construction & Materials
Buildings and construction provide 18 million direct jobs and contribute approximately 9% of EU GDP. The sector creates employment, drives economic growth, and is central to solutions for climate, energy, and housing challenges. It is also one of the EU’s most regulated sectors, given its role in energy consumption and carbon emissions.
After some difficult years marked by high interest rates, elevated energy costs, and labour cost pressures – forecasts now point to a positive turnaround from 2026. The European Commission’s renovation wave ambition remains structurally important: almost 75% of the EU building stock is energy-inefficient, and more than 85% of today’s buildings will still be in use in 2050. The Energy Performance of Buildings Directive has been revised, and the Commission is pushing for accelerated renovation rates.
The overhaul of the Construction Products Regulation (CPR) is the sector’s most significant legislative dossier. The proposed reform aims to align EU construction product rules with the Green Deal’s climate ambitions while reducing barriers to the single market. It is proceeding through the ordinary legislative process in 2026. The Commission’s Clean Industrial Deal and Affordable Energy Action Plan are also directly relevant – high energy costs have been a primary driver of the construction sector’s difficulties, and lower energy prices would materially affect viability and activity rates.
Housing affordability has become a major political issue across EU member states, with Housing Commissioner Dan Jørgensen tasked with a European Affordable Housing Plan. The Commission is under pressure to do more on modular construction, social housing finance, and permit simplification. These political dynamics create new advocacy opportunities for construction sector players, particularly around housing finance, public procurement, and skills development.