Making our homes and buildings fit for a greener future.
Date: 2021-08-17
Institutions: Directorate-General for Communication
Subjects: EU environmental policy, EU financing, carbon neutrality, climate change policy, construction policy, environmental protection, green economy, quality of the environment, reduction of gas emissions, sustainable development

MAKING OUR HOMES AND  
BUILDINGS FIT FOR 
A GREENER FUTURE 

July 2021

The  proposals  presented  today  support  the  development  of 
renewable  and  less  polluting  energy  systems  for  our 
homes and public buildings. They will:

• decrease emissions

• save energy

• tackle energy poverty 

• improve quality of life 

• generate jobs and growth

Buildings account for: 

40%  
of energy  
consumed

36% 

of energy-related 
greenhouse gas emissions   

KEY PROPOSALS FOR HOMES AND BUILDINGS

  The revised Energy Efficiency Directive and Renewable Energy Directive will make buildings  
more energy efficient and boost the use of renewable energy in buildings. 

  The new Effort Sharing Regulation sets emission reduction targets for all Member States by 2030 for 
sectors including buildings.

  Emissions Trading for building fuels will speed up emissions reductions and stimulate investments in 
renewables and energy efficiency. 

  The new Social Climate Fund, funded by revenues from emissions trading in road transport and 
buildings, will provide financial support to citizens, in particular the vulnerable households, to invest in 
renovation or heating systems and ensure a fair transition.

More measures for promoting the decarbonisation of buildings will follow before the end of the year with a 
proposal for revising the Energy Performance of Buildings Directive.

 
 
       
ENHANCING THE USE OF
RENEWABLES AND ENERGY
EFFICIENCY IN OUR BUILDINGS

THE REVISED RENEWABLE ENERGY DIRECTIVE WILL: 

•  Make it easier to integrate renewables into the grid (e.g. developing new technologies, integrating storage 
facilities and improving cross-border cooperation)
•   Provide stronger incentives for electrification (e.g. heat pumps and electric vehicles) and the incorporation of 
new fuels such as renewable hydrogen
•  Encourage energy efficiency and circularity (e.g. facilitating the use of waste heat) 

Set a new EU-level target 
of 40% renewables in 
the energy mix

Set a benchmark of 
49% of renewables in 
buildings

Increase the use of 
renewable energy in 
heating and cooling by  
1.1 percentage point 
every year

Raise the use of renewable 
energy in district heating and 
cooling by 2.1 percentage 
points every year

THE STRENGTHENED ENERGY EFFICIENCY DIRECTIVE WILL: 

SET BOLDER TARGETS 
FOR ENERGY SAVINGS 
BY 2030

39%

for primary energy 
consumption 

36%

for final energy 
consumption 

9% increase compared to 
the ambition pledged by 
Member States in 2020 
within their National Energy 
and Climate Plans

•  Introduce indicative Member State contributions to the EU-level energy efficiency target 
•   Introduce a legal requirement to put energy efficiency first in planning and investment decisions
•  Require Member States to renovate at least 3% of the total floor 
area of all public buildings annually
•  Establish a new target for Member States to reduce energy use 
in the public sector by 1.7% every year
•  Encourage public bodies to use Energy Performance Contracts 
for renovation of large non-residential buildings
•  Prioritise energy efficiency measures for vulnerable consumers 
and energy poor households
•  Take further steps to empower final customers - basic contractual 
rights on heating, cooling and hot water

GIVING PRICE SIGNALS  
TO REDUCE EMISSIONS 
FROM BUILDINGS 

EMISSIONS TRADING FOR BUILDING FUELS WILL:
•  Put a price on polluting fuels, encouraging producers to innovate and invest in clean energy, and offer it 
to end-users

•   Finance a Social Climate Fund to provide financial support to citizens, in particular vulnerable households, to 
invest in renovation or heating systems and ensure a fair transition
•  Ensure a level playing field for all heating options, by complementing the existing carbon price on electric 
heating and district heating with a carbon price on domestic heating
•  Create revenues for Member States which can be used to support the decarbonisation of buildings 

INCENTIVISING MEMBER STATES TO 
CUT EMISSIONS IN BUILDINGS  

THE NEW SOCIAL CLIMATE FUND WILL:
•  Use €72.2 billion in current prices of auction revenues generated by 
the new ETS for buildings to address social impacts 
•  Benefit vulnerable households, especially those in energy poverty
•  Support national measures and investments fostering building 
renovation for these households.
•  Co-finance Member States’ direct income support to vulnerable 
households until investments have been undertaken

NATIONAL EMISSION REDUCTION TARGETS UNDER THE EFFORT SHARING 
REGULATION WILL:
• Maintain the incentives for Member States to take action 
• Allow Member States to make emissions cuts in cost effective ways, with some flexibility

© European Union, 2021
Reuse of this document is allowed, provided appropriate credit is given and any changes are indicated 
(Creative Commons Attribution 4.0 International license). For any use or reproduction of elements that are 
not owned by the EU, permission may need to be sought directly from the respective right holders.  
All images © RossHelen; © Svetlana123; © manonallard. Source: istock.com.

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