Delivering sustainable infrastructure

Uisce Éireann is delivering sustainable solutions such as integrated constructed wetlands for wastewater treatment. To support this, we require enhanced capability and capacity in our supply chain. Given our dependence on this supply chain for sustainable infrastructure delivery, we need a commitment to long-term funding which will signal to the market that a strong pipeline for sustainable solutions exists. Cooperation with our regulators is also essential to ensure that we have a cohesive approach to sustainability.

Policy is ultimately what will drive a sustainable infrastructure system. Intertwined with that, it requires organisations that show leadership from the top and sustainability must be factored into the decision making to invest in and to proceed with projects. We must be cognisant of the risks of not driving forward sustainable infrastructure.

Similarly, strong leadership is key to ensuring that we have all stakeholders engaged. If we can optimise these drivers, we will unlock a pipeline for sustainable infrastructure which can inspire confidence in industry.

There are many factors driving sustainable infrastructure delivery, but the main one is need; we must do this because there is no alternative. Speaking to different stakeholders in this context, it is clear that we need a cohesive plan driven by government. While this is undoubtedly in progress, it is not fully in place right now. In its absence, sustainable infrastructure will not be delivered.

There have been many developments, with government policy leading transformation through green procurement and the transition to a circular economy. Policy is followed by standards, regulations, and licencing, for example, how demolition waste is categorised. We must now align all regulation and licensing relating to sustainable infrastructure development in a cohesive manner. One positive in this regard is that the will to do so is evident, as we saw with Taoiseach Simon Harris’ comments about creating a department of infrastructure. This could be a very positive change for sustainable infrastructure development.

What is interesting about the Taoiseach’s proposal on a department of infrastructure is that it points to a more centralised approach being seen as necessary for delivery. The new Planning and Development Bill – which, once enacted, will increase the lifespan of development plans from a seven-year to a 10-year cycle – is vital and can support the longer-term planning required to deliver complex development particularly in urban areas and a coordinated approach to delivering the supporting infrastructure. There is a lot more potential for centralised coordination.

Government policy sets the direction of ambition and there has been a shift in emphasis in the importance of getting projects delivered as soon as possible. Multiannual funding is key to delivering this. Whether we need a new department to do this is another question, but until you unlock that clarity and certainty of funding to key delivery partners, it is difficult for these partners to be able to outline long-term deliverables.

Policies have set out what required infrastructure is required. The challenge for all organisations is to figure out their respective courses of action for delivery. However, with range of policies being rolled out, this is a dynamic and complex challenge. Water is at the centre of a lot of policy, whether it is housing, hydrogen, or heat, making this a complex landscape for Uisce Éireann. Early engagement with key stakeholders works well to ensure cross-sectoral alignment over these policy objectives so that we develop our action plans in a coordinated manner.

In 2021, a detailed description of needs for the Irish construction sector was published where the skills challenges and opportunities in the construction sector were analysed and outlined the need for digitalisation of the planning process, a construction technology centre, and digitalisation of the construction sector. This led to the creation of Construct Innovate, Build Digital, etcetera. I think an updated version of this analysis which accounts for new developments since then would be beneficial.

While looking at UK policy as an exemplar is a useful exercise, we should also remember that Ireland is a small and flexible nation, and we can innovate beyond what others are doing. Similarly, our challenges are slightly different to those of the UK, and we have the space to be more ambitious.

What we need is a department for joined up thinking, and if that is called a department of infrastructure, that will work. What I have seen is a lack of joined up thinking and this is not because of a lack of willingness, it is because people instinctively operate in siloes. A centralised point of operations for planning infrastructure delivery in transport, education, health, and housing would bridge the existing gap in joined up thinking which is currently inhibiting progress.

Over 91 per cent of those working in the construction sector are employed by SMEs with almost 93 per cent of those working in the construction sector are employed by SMEs with six or fewer employees. That is the reality and there are two primary barriers in this context. Firstly, the ability of these SMEs to invest in innovation is relatively limited. That is where Construct Innovate can help and at very low cost.

Secondly, some of these organisations may also have a limited understanding of what innovation can achieve for them. Hopefully, we can change that through Construct Innovate. On top of this, certification for building products – whether in demolition waste or housing construction – is challenging. The certification process exists for good reason, but it is costly, and it takes a long time. Accelerating that process and making it cheaper is a route within infrastructure that we could help companies.

Construct Innovate is set to undertake a project with the Department of Housing, Local Government and Heritage to publish standardised MMC details to help companies achieve this. With €3.6 million funded through Enterprise Ireland, it is a prime example of efforts to derisk innovation for companies within the construction sector

Certification is the biggest barrier to effective innovation in the MMC sector in Ireland. The gatekeeper is the National Standards Authority of Ireland [NSAI]. There has been a renewed impetus in the NSAI since Martin Searson, Head of MMC, has been involved. However, it currently takes at least 24 months for a new product, system, or innovation within construction to get certified by the NSAI. It also costs a huge amount of money.

I raised this with the Department of Enterprise, Trade and Employment and the Modern Methods of Construction (MMC) Leadership and Integration Group in July 2024. The challenge is that the NSAI is under resourced.

There are around only 20 Agrément certifications in existence in the State. The backlog is a multiple of that. The NSAI is a necessity and there is huge opportunity for a new body, either alongside or under its remit, to become an assigned certifier for manufacturers and contractors. There must be a refreshed approach to how new entries to the market are certified.

Where are the political champions of major infrastructure projects? Who is championing MetroLink, for example? MetroLink is a project that is critical to the State from a socioeconomic perspective, yet the focus is on how much it will cost and whether it will experience challenges like those associated with the new national children’s hospital rather than clearly conveying the massive societal benefits for delivering the project for the State and to the public.

As a result, public servants are understandably risk averse and are under resourced for delivery. There must be more done to support public service delivery teams.

Uisce Éireann is tasked with delivering results and achieving value for public money. As a result, we have implemented governance, processes, standards, and specifications, while building a supply chain that can deliver consistency over time. The innovation that we now require introduces variables which challenge the demand for certainty and consistency.

From an Uisce Éireann perspective, innovation requires flexibility around funding without risking our primary goals to treat water and wastewater and to get to the point where these could be scaled through standards to give certainty that they will deliver results. Without that flexibility, we cannot easily deliver innovation opportunities.

Depending on perspective, the definition of innovation varies. To drive innovation, it is necessary to first have a very clearly defined objective. To address this, the Land Development Agency published an Apartment Typology Booklet, signalling to the market what an LDA home looks like.

We spent a lot of time working with industry partners and certification bodies, the National Disability Authority, the construction industry, and manufacturers of MMC solutions to determine what we were trying to achieve. By standardising our ask, industry is incentivised to come up with innovative solutions.

If we were constructing different units on each of our sites, it would pose a significant challenge for our supply chain to scale up for consistent delivery. At the core of this is increased efficiency which requires absolute clarity on what the objective is.

Project delivery models are often solely focused on the delivery of a project. Another way of looking at innovation is that it is driven by necessity. There was a problem that had to be solved. Learnings captured during a project can be carried into others and disseminating these across the industry is important. Likewise, early contractor involvement and understanding your supply chain are important.

For instance, I can pursue an innovation for building a substation, but this can be enhanced through engagement with project partners. It is important to ensure timely engagement with the supply chain. Much of the IP around projects and innovation is siloed in individual organisations. We must unlock this to our mutual advantage.

People talk about the lack of an infrastructure pipeline when, in reality, a huge pipeline exists across housing, healthcare, and education. The challenge is that the existing pipeline is neither sustainable nor buildable from an industry perspective. This is a major barrier to investment. Engaging industry to establish a buildable pipeline will open the market to significant investment.

Simultaneously, there is a general absence of standardisation – though I know that the LDA and DHLGH and Daniel’s team at Construct Innovate are working on standardisation in housing. This absence is a massive barrier to investment from the perspective of contractors and manufacturers.

Over the last 18 to 24 months, there has been an exponential change in attitudes towards sustainability and the built environment as EU directives and legislation have impacted flows of finance. This includes the EU Taxonomy Regulation for sustainable activities and the Corporate Sustainability Reporting Directive (CSRD) which impacts all the commercial semi-state companies.

We have moved from sustainability reporting to a disclosures-based system, whereby we are required to measure the same metrics and report in the same ways to enable comparability between companies. That is a huge incentive for companies. The incentive has shifted as much towards the corporate responsibility and reputational risk management as it has towards commercial drivers.

On the demand side, customers are asking for sustainability, as are boards and shareholders on the commercial side.

As Enterprise Ireland often demonstrates, companies which undertake innovation earn more money. So, why are they not all doing it? Speaking with those companies which do not undertake innovation suggests that, for many, derisking innovation is hugely important. Construct Innovate is working to achieve this.

In relation to infrastructure specifically, I would love to see the Sustainable Energy Authority of Ireland or Science Foundation Ireland issue funding calls for the infrastructure industry. Industry must inform these funding bodies exactly what it is they require, so they can drive the need. Access to facilities and expertise – including via Construct Innovate – is important.

The expertise exists, but we must establish effective networks between people. We need significant investment in our facilities for product development and certification. Industry needs to contribute to this.

As evidenced by the fact only two or three international contractors have a presence in the State, the infrastructure market does not believe that there is a clear pipeline of opportunities. The NDP is ambitious, but we must demonstrate what opportunities exist. Otherwise, rather than wasting time on tendering, key market players will simply opt to work elsewhere.