Policy

Decarbonisation

Decarbonising the EU’s building stock

The European Climate Law sets a legally binding target of climate neutrality by 2050, with interim goals of reducing net greenhouse gas emissions by at least 55% by 2030 and by 90% by 2040. Given that buildings account for about a third of the EU’s energy-related greenhouse gas emissions, decarbonising the building stock is a cornerstone of this transition. A successful approach requires a stable and coordinated policy framework.

EU Emissions Trading System (ETS & ETS2)

The EU Emissions Trading System (ETS) remains the backbone of the EU’s carbon pricing framework. In 2028, a dedicated system (ETS2) for buildings and road transport is planned to be fully operational. ETS2 will place a carbon price on heating fuels. Part of the revenues generated will help finance the Social Climate Fund. The success of ETS2 depends on robust national frameworks to avoid placing undue burdens on vulnerable households.

Social Climate Fund

To ensure a fair transition, the Social Climate Fund (2026–2032) will channel at least €86.7 billion to help households, micro-enterprises, and transport users cope with rising costs linked to ETS2. The Fund will co-finance investments in renovation, clean heating systems, and renewable integration, ensuring that decarbonisation is both socially inclusive and economically viable.

Energy Performance of Buildings Directive: Towards Zero-Emission Buildings

The revised EPBD places the EU on a clear path towards Zero-Emission Buildings (ZEB). From 2030, all new buildings will have to meet ZEB standards, while buildings owned by public bodies must comply from 2028. This means they must deliver very high energy performance, cover their low remaining demand with renewables, and emit no on-site carbon from fossil fuels.

Beyond operational emissions, the EPBD also introduces measures to address embodied carbon. Large new buildings will be required to disclose their life-cycle global warming potential from 2028, with the requirement extended to all new buildings by 2030.

Renewable Energy Directive

The RED sets an indicative target of at least 49% renewable energy in buildings by 2030. For heating and cooling, Member States must increase the share of renewables by at least 0.8 percentage points a year until 2025, and by at least 1.1 percentage points a year from 2026 to 2030.

Energy Efficiency Directive

The EED mandates the adoption of Heating and Cooling Plans by municipalities with more than 45,000 inhabitants and defines efficient district heating and cooling.

Resources

All publications

Our position paper

Setting the way to decarbonised, efficient, and affordable buildings beyond 2030

To incentivise industry players and building owners to invest, the European Commission should propose a coherent post-2030 energy efficiency framework, backed by adequate financing.

This framework must build on the proven success of the EU energy efficiency framework and the stability provided by the current Energy Efficiency Directive (EED).

Letter

Joint letter calling upon EU Member States to implement ETS2

Efficient Buildings Europe and 49 other undersigned companies, industry associations and civil society organisations urge governments to finalise the transposition of ETS2.

Press Release

Electrification Action Plan is a welcome spark for clean heat, but Europe must electrify efficiently

Europe’s clean energy transition must combine electrification with energy efficiency.

Response to Public Consultation

Heating & Cooling Strategy: EBE’s response to the public consultation

Achieving the 2030 climate and energy targets will require a profound transformation of the energy mix used for heating and cooling in buildings.

Contact us

Rémi Collombet

Secretary General

remi.collombet@efficientbuildings.eu

Romane Faure

EU Project and Policy Officer

romane.faure@efficientbuildings.eu