Europe is at the forefront of global energy decarbonisation, with buildings playing a central role. They account for approximately 40 % of the EU’s final energy consumption and 36 % of energy-related emissions. Notably, 75 % of European buildings perform poorly in terms of energy efficiency and need renovation by 2030. 

Public and political attention to building performance has increased in recent years, driven by two major events: the COVID-19 crisis, which exposed poor ventilation in homes during lockdowns, and the energy crisis triggered by Russia’s invasion of Ukraine, which pushed energy prices up and worsened energy poverty across Europe. 

The EU took early action by adopting the Energy Performance of Buildings Directive (EPBD) in 2010, revised in 2024, and the Energy Efficiency Directive (EED), revised in 2023. Recognising the crucial role of buildings in the energy transition, the 2024-2029 European Commission has extended the Energy Commissioner’s mandate to include housing. 

This reflects a growing understanding that renovation must also address social objectives, including promoting affordable housing and reducing energy poverty. 

This report identifies the main challenges local governments face in building policy, outlines skill gaps, and provides targeted policy recommendations to support more inclusive and effective renovation strategies. 

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