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«When it comes to energy, the construction and real estate industry must reinvent itself»

February 2022

Pascal Bärtschi, Vice President Development Switzerland and CEO of Losinger-Marazzi AG, explains in an interview why the energy strategy 2050 is important for the association and how the CO2 emissions of properties can be sustainably reduced.

To person
Pascal Baertschi,
civil engineer ETH
Vice President of
Development Switzerland and since 2015 CEO of Losinger Marazzi AG. The 52-year-old previously managed at Losinger
Marazzi the central region (Bern-Freiburg-Basel).

Where does the Swiss Development Industry Association see its core tasks?
We represent companies that are able to take on total services. In other words, those who can cover everything from project development to implementation. We see our main task in discussing overriding issues such as densification and spatial planning at an appropriate altitude with our customers, investors, the responsible authorities and political leaders. This gives our members the opportunity to enter into dialogue with the responsible persons via Swiss Development. In addition, we as an association have written various position papers – for example, a position paper is currently being prepared on the question of what is meant by the quality of a construction project.

What advantages do your members enjoy?
We regularly organize events for our members and associated partners where they can exchange ideas with stakeholders such as politicians or investors. In addition, it is much easier for an association to hold talks on overriding issues with cantons or bodies such as the Federal Office for Building and Logistics (FOBL) than if each member had to do this individually. Especially when it comes to regulatory issues, our members benefit from the direct interface to politics, which we have thanks to our President, Councilor of States Martin Schmid (FDP). He is a lawyer and therefore not active in the industry, which we see as a further advantage.

What influence does the association have in Switzerland and especially in federal Bern?
We offer the authorities, investors and our customers a proven interface. I rate our influence as good. We have been able to establish ourselves very well as a dialogue partner for the major authorities. The real estate industry is decentralized. It is therefore important for us that we are not only heard in Bern, but also by the cantons and municipalities. Because a project is approved by a municipality or a canton. Thanks to our President and the contacts in the office, we have a good connection to the federal government of Bern, which of course helps when it comes to issues such as the Spatial Planning Act.

Is such an association absolutely necessary for a successful future in the construction industry?
I would say it is important and necessary that such an association exists. The number of Swiss full-service providers in the real estate industry is manageable. Our association can optimally represent these companies at various levels.

What responsibility does Swiss Development take with regard to the quality of life and housing in construction projects?
We do not impose any framework conditions on our members. However, the perception of the quality of living is given in any case, since we as Development Switzerland deal intensively with related topics such as noise protection, inward densification and spatial planning. But with us, each member is responsible for developing the projects accordingly and delivering the necessary quality. One must not forget that the members are in a competitive situation.

«
low-carbon
Building materials, more flexible
conversions
»

How important is the Energy Strategy 2050 for the association?
The energy strategy is very important to us. We try to make partners and customers aware of this. The CO2 consumption in the real estate and construction industry is still relatively high. One part occurs during construction, the other during the life cycle of a property. Assuming a property's life cycle of 60 years, decisions made today for a new building have long-term effects. In this context, the real estate and construction industry will have to reinvent itself.

What do you mean?
Ten years ago, around 50 percent of CO2 emissions came from the manufacture of building materials and during the construction phase itself. The other 50 percent went towards the maintenance of a property. Today, when it comes to the maintenance and operation of a building, we are at around a third of the CO2 emissions; in the production of the building materials and the construction itself in two thirds. We have to think about how we can reduce the carbon footprint of a property. One solution is to really only build on the area necessary for a building. Another approach is the choice of materials – today there is already low-CO2 concrete or the option of environmentally friendly timber construction. In addition, existing structures must be able to be converted later. If we look at investments in the real estate industry, 99 percent is new construction and only 1 percent goes into renovation. Here we see a need for action.

How has the construction and real estate industry coped with the pandemic so far?
The construction industry has fared relatively well – there has been little loss of sales as, with the exception of the canton of Geneva, construction sites have remained open even during the lockdown. Real estate development turned out to be somewhat more difficult. The development of a project usually starts with a district plan and a building permit. The pandemic has slowed down a lot. For example, community meetings where a project was to be voted on, for example, often had to be postponed. This automatically moves the project as well. When processing the building application dossiers, the shift to working from home was noticeable: the exchange was made more difficult; it all took a little more time, which in turn led to delays.

Is there a change in working life due to the pandemic?
The pandemic has accelerated trends that were already apparent. An example of this is the less office space required per person. When designing apartments, taking into account the need to work from home more and more frequently should have a long-term influence. This does not necessarily result in an additional study in the apartment itself. I can well imagine that different small co-working spaces will be developed within a district. These could also have mixed uses, for example function as a restaurant at lunchtime.

Do people in French-speaking Switzerland live differently than in German-speaking Switzerland?
The aspects of sustainability are currently even less perceived in French-speaking Switzerland than in German-speaking Switzerland. I suspect that's because the green tendencies first came from Germany and thus reached German-speaking Switzerland first. German-speaking Switzerland also has a certain lead when it comes to public transport – although French-speaking Switzerland is catching up here.

What milestones has Development Switzerland achieved in recent years?
The most important point is certainly that we are now established contacts for overriding issues at cantonal and federal level.

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