1. Construction Product Regulation (CPR) – Launching Around 2026

In December 2023, the European Council and Parliament reached a provisional agreement on revising the Construction Products Regulation (CPR). This initiative aims to improve consistency and transparency in the construction sector by mandating the disclosure of third-party-verified Global Warming Potential (GWP) data for all construction products.

• Mandatory GWP Disclosure: With the CPR requiring GWP data, manufacturers will need to create EPDs that provide comprehensive environmental impact data. EPDs will serve as a reliable resource, enabling manufacturers to fulfill this requirement effectively and transparently.
• Full Environmental Impact Reporting: By 2030, manufacturers must report a comprehensive range of environmental impacts through EN 15804-based EPDs. This shift emphasizes the importance of establishing robust EPDs that capture the full life cycle of their products.
• Digital Product Passports: The CPR introduces digital product passports, wherein EPDs will play a critical role. These passports will include essential information about product performance and environmental impact, facilitating informed decision-making across the value chain.
• Green Public Procurement: As the CPR establishes mandatory minimum environmental requirements for public procurement, having EPDs will enable manufacturers to demonstrate compliance and secure contracts for public projects, ensuring they remain competitive.

2. Energy Performance of Buildings Directive (EPBD)

On March 12, 2024, the EU parliament approved a revised Energy Performance of Buildings Directive (EPBD). This directive marks a significant advancement in climate action by mandating the assessment of carbon footprints in construction materials, thereby impacting operational energy consumption in buildings.

• Carbon Footprint Reporting: The EPBD mandates that buildings over 1,000 square meters calculate and report their carbon footprints starting in 2028. EPDs will provide manufacturers with a standardized means to communicate the carbon impacts of their products, simplifying compliance.
• Zero-Emission Standards: With new buildings required to achieve zero on-site fossil fuel emissions by 2028, EPDs will help manufacturers showcase their products’ environmental benefits, aligning them with these critical standards.
• Improved Energy Efficiency: As the EPBD calls for enhanced energy efficiency in buildings, EPDs will enable manufacturers to provide clear data about how their products contribute to meeting new energy performance requirements, thus promoting their sustainability credentials.
• Renovation Initiatives: With directives aimed at renovating the least efficient buildings, EPDs will empower manufacturers to offer essential performance data, assisting builders in selecting products that comply with updated energy standards.

3. Corporate Sustainability Reporting Directive (CSRD)

Effective January 5, 2023, the Corporate Sustainability Reporting Directive (CSRD) requires large companies to disclose social and environmental risks and opportunities. This regulation places a significant emphasis on transparency, directly impacting manufacturers in the construction sector.

• Comprehensive Environmental Reporting: The CSRD necessitates that manufacturers provide detailed disclosures about the environmental impacts of their products throughout their life cycles. EPDs will be crucial in fulfilling these disclosure requirements by providing reliable data on various environmental impacts.
• Alignment with EPD Standards: As manufacturers are expected to report on multiple environmental aspects, EPDs will become the standardized method for conveying this information, ensuring consistency and credibility in reporting.
• Life Cycle Assessment (LCA): Utilizing EPDs based on LCA methodologies will not only satisfy the reporting obligations under the CSRD but will also highlight a manufacturer’s commitment to sustainability, appealing to environmentally-conscious stakeholders.

4. Carbon Border Adjustment Mechanism (CBAM)

The Carbon Border Adjustment Mechanism (CBAM) aims to prevent carbon-intensive imports from flooding the EU market and is set for full implementation by January 1, 2026. This regulation significantly impacts how manufacturers approach their environmental practices.

• CBAM Certificates: Importers will be required to purchase CBAM certificates that match the carbon footprint of imported goods. EPDs will enable manufacturers to quantify and communicate the carbon emissions associated with their products, facilitating accurate reporting and compliance.
• Encouragement of Cleaner Production: The CBAM incentivizes manufacturers to adopt cleaner production methods to minimize carbon footprints. EPDs will validate these efforts, providing evidence of reduced environmental impacts and reinforcing a manufacturer’s sustainability narrative.

5. EU Taxonomy

The EU Taxonomy Regulation is a key part of the European Union’s sustainability agenda, designed to help the EU achieve its ambitious goals of reducing greenhouse gas emissions by 55% by 2030 and reaching climate neutrality by 2050. This regulation provides a classification system that defines which economic activities are considered environmentally sustainable. It aims to guide investment towards activities that have a substantial positive impact on the environment, thus supporting the transition to a low-carbon economy.

Environmental Product Declarations (EPDs) are essential tools that provide transparent, third-party-verified data on the environmental performance of products throughout their life cycle. For manufacturers in the construction sector, EPDs can facilitate compliance with the EU Taxonomy Regulation in several ways:

• Demonstrating Environmental Impact: EPDs provide detailed information on key environmental indicators, such as global warming potential (GWP), resource use, and emissions. This data aligns with the criteria set by the EU Taxonomy to determine whether a product or process contributes to climate goals.
• Supporting Green Investments: The EU Taxonomy guides investors towards environmentally sustainable activities. EPDs offer manufacturers a credible way to show that their products meet the sustainability criteria required for taxonomy-aligned investments, attracting green financing.
• Facilitating Transparency: EPDs promote transparency in environmental reporting, enabling manufacturers to present reliable environmental data. This transparency is critical for demonstrating compliance with the EU Taxonomy, which requires businesses to report how their activities align with its sustainability objectives.
• Circular Economy and Resource Efficiency: EPDs document a product’s life cycle impacts, which include resource use and waste generation. This data can help manufacturers demonstrate that their activities support the circular economy principles outlined in the Taxonomy, particularly in terms of resource efficiency and recycling.