Efficient, flexible, decarbonised, and healthy buildings play a central role in the EU’s economy and net-zero energy system.
The roll-out of energy efficiency in buildings is one of the EU’s unsung success stories: Between 2005 and 2022, total GHG emissions from buildings fell by 34% thanks to European standards and legislation.
These standards enabled a leading industrial ecosystem to develop in the EU. With a yearly turnover of around €850bn and employing 6.5m workers, the EU efficient buildings industry is already a large contributor to the economy, and it is projected to grow significantly in the coming years, as the Fit-for-55 files (FF55) are implemented. Energy efficiency products and solutions are manufactured and installed in the EU. As an example, the industry currently runs around 300 insulation manufacturing sites and 300 heat pump and component manufacturing sites in the EU.
With the right policy conditions, by 2030 the energy efficiency industry could deliver:
- 18,000 local jobs, for every billion euro invested
- €45bn to €100bn saved on energy bills per year
- 250m tonnes of GHG emissions avoided per year (assuming the gas displaced emits 651 gCO2/kWh)
Efficiency-led affordability
The European Commission’s European Affordable Housing Plan, published in December 2025, recognises energy efficiency and renovation as key to long-term housing affordability. It is an excellent opportunity to reduce operating costs, enhance living conditions, and empower building owners and tenants across Europe. Read our reaction to the Plan, and our responses on the Affordable Housing Act and the Housing Simplification Package.
With a supportive and stable policy and financing framework, energy efficiency technologies and solutions can be deployed at scale to improve the long-term affordability and comfort of housing in the EU.
Efficient buildings can deliver far-reaching benefits for European households beyond energy savings and decarbonisation goals, in improving their well-being, affordability and availability of housing.
A holistic approach to affordable housing should not be limited to easing the burden of upfront construction costs but also consider operational costs. Energy and water efficiency technologies are already available and can play a central role in resolving the current crisis.
Renovations can also put vacant spaces back on the market and transform them into affordable housing options. Combined with attic extensions, renovations can increase the number of dwellings while avoiding the use of extra land and reducing the cost of works.
Resources
Our position paper
Ten actions to drive competitiveness through efficient buildings
The EU must further strengthen the sectors of the transition it already excels in to keep and expand its competitive advantage, while promoting a strong European industry and a vibrant supply chain.
We therefore ask for a more coherent industrial policy supporting the efficient buildings ecosystem which would help Member States reap the full benefits of an energy efficient economy: increased competitiveness, lower and more stable energy prices, higher energy independence, a healthier society and long-term skilled jobs in the EU.
Response to Call for Evidence
Housing Simplification Package: EBE’s response to the call for evidence
Energy and water efficiency technologies are already available and can play a central role in lowering bills and increasing the supply of affordable housing.
News
AccelerateEU: Cutting energy bills starts with efficient buildings
Efficient Buildings Europe welcomes the European Commission’s “AccelerateEU” Communication, which acknowledges energy efficiency’s key role in buildings as a cost-effective response to soaring energy prices.
News
The Clean Industrial Deal, first step to an energy-efficient Europe
The Communication and the Affordable Energy Action Plan both highlight that promoting energy efficiency is crucial to lowering energy bills, a key condition for the greater resilience and competitiveness of European industry.
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