The global construction industry employs about 7% of the world’s working population, making it one of the largest sectors of the global economy with a market worth at least $10 trillion. At the same time, the industry has the potential to increase the added value of construction activity by increasing the intellectual component by at least 1.6 trillion US dollars. But as one of the largest consumers of raw materials and related products, the construction industry is characterized by extremely inefficient use of resources and high rates of waste generation – up to 25-30% of the total volume during construction work.
In Ukraine, the construction industry is still developing according to an extensive scenario, without using intellectual innovations and without reducing its negative impact on the environment. How can Ukraine stimulate the development of the intellectual component for the intensive development of the industry and at the same time adhere to the goals of the European Green Deal in construction? To answer these questions, the BRDO team prepared the Green paper “Interaction of participants in the construction market in terms of the life cycle of buildings and structures”.
The European Green Deal strategy attaches great importance to construction and renovation. Among its goals is the development of “green” construction and carbon-free production as elements of the circular economy, which will reduce the use of energy and resources. In addition, the strategy sets out a desire to triple the speed of renovation of all buildings in order to reduce the pollution that occurs during these processes – and this is especially important for Ukraine, which is faced with the challenge of large-scale post-war reconstruction.
The modern market of construction services is significantly influenced by technological development and the global penetration of innovations at all stages of the set of technological processes of construction and management of the life cycle of the object. It is innovations, new technologies and approaches that primarily shape the future trends and tendencies of the global and national construction market.
“All current trends capable of shaping the future landscape and development logic of both the construction sphere and the building materials industry depend on the rapid pace of implementation of new technologies and innovations. Such steps involve increasing the level of the intellectual component in processes and the cost of products in the construction market. It is predicted that the level of requirements for work executors and representatives of regulatory authorities will increase. In our new Green Book, we analyzed in detail the state of affairs in the Ukrainian construction market and the best global practices, as well as proposed a list of operational steps to stimulate the development of the intellectual component in the interaction of construction market participants,” said Oleksii Dorogan, executive director of BRDO.
The Green Paper contains an analysis of the following components of the construction industry:
- the current state and priority directions of development of the construction industry based on the data of the State Statistics Service of Ukraine and other statistical and analytical information obtained from open sources;
- mechanisms of interaction of key stakeholders in the processes of construction and operation of buildings and structures in terms of the life cycle of buildings and structures;
- the essence and impact of the European Green Deal on the future development of the construction industry and industry, the possibilities and prospects of Ukraine’s direct participation not only in ensuring the achievement of the criteria of the “green” circular economy, but also influencing the planning of measures for the implementation of the EED;
- peculiarities of interaction of participants in the process of providing construction products on the market;
- the dynamics of the specific weight of the intellectual component in the construction and related processes, its influence on the efficiency of the development of the industry.
The Green paper is available at regulation.gov.ua (in Ukrainian).
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