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Why efficient construction is not only sustainable but also a driver of the national economy  

Energy efficiency makes the German economy more competitive internationally. Because companies that use fewer resources operate more sustainably and invest their capital in innovations. 

24 March, 2022

Germany has big plans. The German government wants to shape the German economy into one of the most energy-efficient economies in the world. It wants to achieve a nearly climate-neutral building stock by 2050, according to the German Federal Environment Ministry. Circular economy and sustainable construction are to become the guiding goal of future investments. Even the stock markets are benefiting: Returns on investments in companies around energy efficiency are usually higher than on other safe investments. 

Construction industry accounts for large share of German GDP 

The construction industry plays a major role in the success of this strategy, which combines economy and ecology. With almost two million employees and a construction volume of almost 400 billion euros, the construction industry is a significant sector of the German economy. Or to put it another way: around ten percent of Germany's gross domestic product is spent on construction measures (2019: 373 billion euros). (Source: BMWI). The construction industry is considered one of the most important economic pillars of the German economy. 
Energy-saving construction and insulation are particularly important for the national economy of countries like Germany that are poor in raw materials. In this way, the capital that would otherwise flow abroad for the purchase of fossil fuels remains in the country and is invested there. 

Circular economy and digitization as drivers 

Construction companies agree: they want to conserve resources even more than before and continue to drive forward the goal of full circular economy, the reuse of existing materials. There are many reasons: For the benefit of building owners, because Germans consume around 35 percent of total final energy in their own homes, primarily for heating and hot water. But also, for the benefit of the climate and the German economy. Because energy and material efficiency become a decisive factor for international competitiveness for the construction industry. The potential is impressive, as management consultants Roland Berger describe it in a recent study. For example, a circular economy approach to construction could influence up to 30 percent of all waste generated in the EU and up to 40 percent of EU emissions. Successful German research and development of new building materials and digital building design makes the companies involved pioneers for “energy efficiency made in Germany.”  

University Campus Zadar in Croatia

Holistic view of buildings is crucial 

Economically decisive, for private building owners as well as for the national economy, is always the holistic approach to a property. Real estate prices show: Those who build energy-efficiently increase their resale value. In addition, real estate is already a secure form of retirement provision for millions of people. This is also an important economic aspect. 
 
Xella invests in climate-related research

The Xella Group has invested more than 5 million euros in research and development for the further development of sustainable and environmentally friendly building concepts in 2021, a large part of this in environmental and climate-related further developments. The Xella Technologie- und Forschungsgesellschaft is leading this effort.  “With our construction and insulation solutions, we stand for an efficient, sustainable and cost-efficient construction industry for the benefit of customers,” says Christophe Clemente, CEO of the Xella Group. 

But it is not only the German economy that benefits from research into energy-saving construction, but also the European economy. After all, climate protection, resource conservation and the circular economy are becoming the new economic model.  
This is also ensured by the new EU taxonomy. With the help of tax incentives, financial flows are to be channeled into sustainable projects. In the case of real estate, the criteria apply to new buildings, major renovations, and existing properties. 
This is the only way to achieve the goals of the European Green Deal, with which the European Union aims to become the first greenhouse gas-neutral confederation of states by 2050.  
This is another reason why the Xella Group is committed to collaborative research at European level. To this end, it is in close exchange with customers, research institutions, universities, and other companies in the construction industry. 
“With its outstanding performance in the areas of research, product development, and standardization, the Xella Technologie- und Forschungsgesellschaft is of inestimable importance to the construction industry,” says Prof. Dr. Oliver Kornadt, head of the Department of Building Physics at the Technical University of Kaiserslautern, assessing the work of the Xella Group.   
It will continue to play its part in Germany's economic success through greater sustainability. 

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