EU Work Package Outcome

EU Initiatives Influencing Construction and Housing in the Nordic Region

Publiceret 16-04-2026

A report has been developed within the Nordic Sustainable Construction project with the purpose of providing an overview of current and upcoming EU initiatives that may affect the construction and housing sector. This is developed to enable early and coordinated Nordic engagement that could strengthen the influence in EU negotiations, reduce duplicated national work, support industry competitiveness and ensure that Nordic priorities are reflected in upcoming EU acts.

The report identifies various initiatives, focusing mostly on the following four initiatives:

  1. Construction Services Act
  2. Skills Portability Initiative
  3. Circular Economy Act
  4. Framework to Increase Lending for Renovations

The overview shows the current EU initiatives and their connections to each other.  

Overview of EU initiatives

Construction Services Act

The Construction Services Act aims to foster free movement of construction and installation serices. Key policy options include stronger enforcement of the Services Directive, mutual recognition or harmonisation of qualifications and site card, and development of EU-wide standards. The initiative complements the Service Directive and links to other EU files, such as European Affordable Housing Plan, the Strategy for Housing Construction and the Fair Labour Mobility Package.

Skills Portable Initiative

The EU’s ability to move labour and skills across borders is held back by uneven implementation of qualification frameworks, fragmented digital systems, and inconsistent recognition procedures. Many skills remain invisible because they are not formally documented, and small and medium-sized enterprises struggle to navigate the complexity. Without coordinated EU action to improve transparency, harmonisation, and digital credentialing, these barriers will continue to limit mobility and worsen skills shortages across the Single Market.

Circular Economy Act

The proposed Circular Economy Act aims to establish a unified market for waste and secondary raw materials by tackling e-waste, reforming End-of-Waste (EoW) criteria, streamlining and digitalising Extended Producer Responsibility (EPR) schemes and introducing mandatory circular procurement standards. For the Nordic region, key concerns include ensuring that existing building stock is treated as a primary resource, recognising circular construction as a distinct priority area, and safeguarding the role of Waste‑to‑Energy within district heating systems.

Framework to Increase Lending for Renovations

As part of the recast Energy Performance of Buildings Directive (EPBD), the EU Commission is preparing a delegated act to guide lenders in increasing renovation lending, promote best practices, and ensure support reaches high‑need segments. The act may rely on energy performance certificates or ratings to identify worst‑performing buildings, meaning it could directly influence national EPBD implementation.