The UK and European Union have announced a landmark agreement to link their Emissions Trading Schemes, delivering major cost savings for exporters through streamlined cross-border carbon pricing. Anticipated annual savings of up to £800 million for UK exporters and total transaction cost reductions exceeding €1 billion by 2030 are expected. This move supports environmental sustainability in construction, enabling businesses to better align with international decarbonisation and net zero carbon goals, while addressing the carbon footprint of construction and supporting whole life carbon assessment for projects.
Green investment and financing in Europe continues to expand. The European Investment Fund and BNP Paribas have introduced the region’s largest energy transition guarantee, providing easier access to funding for small and medium enterprises. These financial initiatives are likely to accelerate innovation in sustainable building design and low carbon construction materials, supporting the adoption of energy-efficient buildings, low carbon building methods, and whole life carbon strategies in the construction sector.
Significant advances in decarbonisation projects are reported, especially within industrial construction. HES International and Binding Solutions have agreed to explore a £22.4 million green steel plant in Rotterdam, focusing on iron ore cold pelletising. Such developments highlight efforts towards embodied carbon reduction, the use of low-impact construction processes, and resource efficiency in construction—key aspects in the drive for carbon neutral construction and minimising embodied carbon in materials for future building projects.
Regional partnerships are strengthening the circular economy in construction. London’s ReLondon has joined the Circular Alliance of Regions, promoting reuse, recycling, and sustainable material specification across cities and regions. These alliances encourage circular construction strategies, enhanced end-of-life reuse in construction, and eco-design for buildings, pushing the sector towards more sustainable building practices and sustainable urban development.
The growth of green skills is evident among young people, with two-thirds of Gen Z in the UK feeling equipped for sustainability-focused careers, surpassing the global average. As demand increases for expertise in lifecycle assessment, low carbon design, and sustainable site management, the construction and built environment sectors will benefit from a more skilled workforce ready to meet challenges in green construction and net zero whole life carbon delivery.
Persistent challenges remain in improving domestic energy efficiency. Future energy price caps may offer limited relief, but industry voices continue to call for ongoing investment in energy-efficient buildings and sustainable retrofit initiatives. Ongoing collaboration between government and the private sector is essential to advance sustainable building practices, reduce operational carbon, and meet national net zero carbon targets.
