Building & construction

Introduction Construction in France - 2006 and outlook for 2007 French construction industry: motorway concessions Outlook for French construction market A boost for public contractors London 2012 Paris' largest urban real estate project Opportunities in the French housing sector, 2007-2008 Public Tenders in France Environmental Legislation Facing the Housing Sector in France

 

 

France is committed to bringing its greenhouse gas emissions to 1990 levels by 2012. To help respond to the challenge several environmental initiatives, notably concerning the building sector, have been put in place. The building sector is on particular concern as its energy consumption has grown continuously over the last 30 years. By 2005, it consumed 42.5% of the total energy consumption in France, or 160.6 million petrol equivalent tonnes (PET). The building sector represents 23% of France’s total annual greenhouse gas emissions, or 534 PET of CO².The key culprit for buildings is heating – representing 56% of the average household’s energy consumption.

 

Originally launched in 2000, the government initiative for reducing household energy consumption, given the acronym RT2000 has twice been updated. The overall aim of the RT initiative was to reach the overall Kyoto directive to reduce by a factor of 4 the level of CO² emissions by 2040 by 5 year steps of 15% reductions. The first update, the RT2005, aimed to reduce household energy consumption to between 80 to 130 KWH/m².  Since then a more ambitious project has been voted, called RT 2012 with a target of 50 KWH/m². The RT 2012 applies to all building permits for houses made since 2006.

 

The effects on the building sector are significant. The overall housing sector is estimated at 3.5Bn square meters of which 2.6Bn m² is private sector homes and 850m m² is public sector housing. The building industry estimates the cost of reaching Factor 4 between 200 and 400€ per m². To help finance the renovation, the Environment Ministry is discussing preferential loans although these are not yet available.

 

The most obvious business opportunity is in simple renovation and insulation. Some 41% of existing French homes do not have double glazing and over half have not undertaken any roof insulation work in the last 20 years. Just over a third of primary residences were constructed in the building boom years of 1950-1974 when energy was cheap and plentiful and little consideration was given at the time to energy preservation.