The EU has new ambitious climate goals for its buildings - here’s how to ensure they’re not weaponised

The narrative that climate policies hurt ordinary people is being weaponised across Europe, wielded by those who argue the drive to net zero is unaffordable, unattainable and unnecessary. There is a critical need to demonstrate the positives: about how decarbonisation can protect us from the types of energy price spikes Europeans are facing in light of conflict in the Gulf, and deliver better living standards for everyone. Amid this rising political polarisation, policymakers are pressing ahead with plans to reduce emissions, including those from an often overlooked source: Europe’s buildings. 

As member states move the EU's flagship building climate goals into national law, policymakers must address peoples' worries head on. But right now, recommendations on how to protect people's homes and jobs through this process are almost entirely absent. A failure to respond to legitimate concerns about net zero - especially given Europe's housing affordability crisis - risks damaging public support for all future climate action. With populist parties waiting in the wings, policymakers cannot afford to wait.

Europe’s dual housing and climate crises

The built environment - where we live, work, and socialise - has a defining influence over our access to decent jobs, affordable housing, and thriving communities. But it is also a major contributor of greenhouse gases, generating 33% of the EU’s energy-related emissions. 

This is why the Energy Performance of Buildings Directive (EPBD) - the EU’s main legislative instrument to reduce emissions from the built environment - is so important. By introducing new energy performance standards for all buildings, changes to how buildings are renovated, and measures to address energy poverty, the EPBD marks a significant strengthening of the bloc’s climate ambition. 

We unequivocally must cut emissions from our buildings, towns and cities. But this has to be done in a fair way that doesn’t leave ordinary people exposed to unaffordable costs, housing uncertainty and job insecurity; especially Europeans who find themselves priced out of the cities they call home. With some member states experiencing house price rises of over 200% since 2015, these are legitimate concerns. 

And yet, despite there being plenty of technical guidance for member states - who have until May 2026 to transpose the legislation into national law, and until December 2026 to submit their National Building Renovation Plans - recommendations related to social protections are currently missing. This leaves vulnerable households and workers exposed to potentially negative consequences - particularly as new EU taxes for heating fuels come into effect in 2027, further pushing up the cost of heating homes Here’s five ways policymakers can plug that gap to ensure climate ambition and social protections go hand-in-hand.

Five ways to deliver climate ambition and social justice

Firstly, member states have a legal obligation to protect the right to adequate housing: this means policymakers must protect all Europeans from forced evictions and unreasonable rent increases. But how can they incentivise a private landlord to invest in new windows and insulation when they won’t personally benefit from the subsequently lower energy bills? It is reasonable for landlords to want to recover their costs. Allowing rent increases but capping them in line with household energy savings - known as ‘housing cost neutrality’ - is a practical and fair way to ensure benefits are shared between landlords and tenants.

Secondly, all member states are legally committed to protecting labour rights. In the context of the EPBD, this means protecting construction workers. The first step is investing in new skills training, so peoples’ jobs are safe through the green building revolution - but this must happen alongside improvements to working conditions. Non-EU migrant workers, who make up 9.1% of the construction workforce, are particularly at risk from poor and dangerous environments. National governments can learn from Oslo’s experience of limiting subcontracting in the building sector to a maximum of two tiers, to tackle exploitation.

Then there’s the ever-present challenge of policymaking: who pays? The public deserve reassurances that the poorest won’t be burdened with unaffordable renovation costs - but the public purse will only stretch so far. Policymakers should think creatively about funding tools for energy-saving housing projects: for example, pay-as-you-save schemes would allow families to recover retrofit investment costs through their energy bill savings. 

EU citizens may be forgiven for worrying that such schemes would be burdensome to access. This is why inclusive governance will be critical, bringing together different perspectives to design an accessible building transition that works for everyone. ‘One stop shops’ - where citizens can go for all their housing renovation, administrative and financing services - would encourage this. In addition, tenant and labour unions must help draft laws: representing the voices of communities and workers, but also, crucially, building public trust that net zero plans are being designed to meet their needs.

Finally, if policymakers are to robustly respond to critics of net zero policies, they will need hard evidence that costs are being fairly shared, jobs are secure and homes are protected. To do this, monitoring and enforcement will be critical. Creating an independent renovation ombudsperson - someone tasked with investigating allegations of unfair rent increases or worker exploitation, and empowered to set meaningful penalties - would bring additional protections.

Policymakers must embed social safeguards when introducing new green building laws, and proactively tell citizens how this policy will deliver affordable homes, climate resilient cities and future-proof jobs. Otherwise, ordinary people will pay the price for emissions cuts - destroying public trust and handing a political gift to those eager to discard net zero for political gain.

Guidance: Safeguarding Rights in the Transposition of the EU Energy Performance of Buildings Directive

The European Performance of Buildings Directive (EPBD) is the EU’s main legislative instrument to reduce emissions from the built environment. To help steer these national efforts, IHRB has developed new guidance offering practical, rights-based recommendations for policymakers across all EU Member States. 

The guide sets out key recommendations across five priority areas: housing rights, labour rights, financing mechanisms, inclusion and governance, monitoring and access.