Anna Iafisco, housing policy advisor for Eurocities, Eusew’s partner organization, explains how city governments are driving the transition to climate-neutral buildings and why they need the EU and state support to ensure that no one is left behind.
The city government is ready to lead the transition to climate-neutral buildings by 2050, but it cannot be done on its own. To ensure a fair transition, they are necessary to ensure that the EU and low- and middle-income households have access to renovation support. Tools like better funding, coordinated policies, and one-stop shops allow cities to deliver warmer homes, lower bills, and a livable future for everyone.
The road to climate is through our homes, with the city leading. Buildings account for 40% of Europe’s energy usage and 36% of emissions, and decarbonisation of our built environment is a major challenge and an important opportunity.
By increasing energy efficiency, especially with residential stocks, cities are reducing emissions and increasing energy security, as well as improving the quality of life for people. Importantly, this conversion provides an opportunity to tackle energy poverty. Energy poverty also addresses the issue of fair access to green, healthy living spaces, leaving many households without proper heating, cooling and lighting.
For a transition to succeed, it must be fair. Eurocities believes that especially vulnerable, low- and middle-income households, and those exposed to high-energy bills and inadequate living conditions should not be left behind.
Reaching climate-neutral building inventory by 2050 will rely on comprehensive, well-funded renovation policies that reflect the reality of Europe’s diverse housing systems and lead the way for cities.
Variety of housing systems: general challenges
European housing systems are very diverse, ranging from strong social and cooperative housing sectors in some countries to more privatized or market-driven systems. Building policies across the EU should allow for flexibility and allow local, regional and central governments to tailor solutions to a particular situation.
All approaches to all approaches to financing renovations, particularly in the private rental market where incentives do not reach either landowners or tenants, except those who fall outside strict revenue thresholds or tenant rules. Elsewhere, limited local government control over outdated ownership structures or social housing creates additional obstacles.
This diversity must be explicitly recognized in the EU policy framework. There is a need for adaptable rules to ensure local governments reach the most needy, protect tenants from the risk of evacuation, and ensure that EU funding tools match actual conditions on the ground.
One-stop shop: Make renovations simple and comprehensive
One of the most effective ways cities can support their homes through the transition to energy-efficient and sustainable homes is to set up a one-stop shop. These local services provide clear and accessible information about renovation options, available grants and loans, technical support and reliable contractors all in one place.
In Milan, Sportello Energy Desk focuses on residents navigating improvements in energy efficiency and reaching low-income and energy poor households. The city combines this advisory service with targeted financial support, allowing families to carry out renovations that they otherwise could not afford.
Similarly, in Rotterdam, “woonwijzerwinkel” offers a physical and digital one-stop shop, allowing residents to get free, independent advice tailored to their homes. The store has become a reliable and reliable point for citizens who may be excluded from the renovation scheme.
These examples show how trust can be built and renovation rates can be increased, especially among the most vulnerable, when designed with people’s needs in mind.
Target support when it matters most
We know that comprehensive renovations are expensive and many households can’t afford them. Therefore, targeted public investments are essential. Renovation efforts should first focus on buildings with the worst performance. This is where the greatest impact can be achieved both for the climate and the well-being of its residents.
In Vienna, a long-standing commitment to affordable housing has positioned the city as a leader in socially inclusive climate action. The city is implementing a massive renovation program for social housing stocks, combining improved energy efficiency with tenant protection measures and cost management.
Meanwhile, in Ghent, Belgium, the city partnered with social organisations to reach vulnerable households and jointly develop coordinated renovation plans. This collaborative model ensures that support reaches the people most need it, while building long-term capabilities within the community.
These experiences provide valuable lessons for implementing the EU’s revised building command for energy performance. While cities are ready to deploy build upgrades, they need clear standards, funding and flexibility to adapt to local realities.
Decarbonization and heating, improving lifestyle
Building renovations are just part of the solution. Most homes in Europe are still heated with fossil fuels, especially natural gas. To meet the EU’s 2050 climate target, fossil fuel boilers need to be rapidly phased out and invested in renewable and efficient heating and cooling systems. This is an important step to reduce emissions and protecting residents from rising fuel costs and energy anxiety.
The city is already taking action. In Paris, the city has expanded its district heating network based on renewable energy sources, prioritizing social housing and public building connections. This approach demonstrates the power of public infrastructure to not only reduce emissions, but also protect residents from unstable energy prices and achieve a fair transition.
A truly affordable climate-neutral vision of a home
To fully realize the transformation of the built environment, Europe must also advance its shared agenda for affordable, inclusive and healthy housing. Future European Affordable Housing Plans will provide an opportunity to help invest in affordable housing, improve existing stocks through deep renovations, and address the affordable crisis by adjusting climate, environmental and social objectives.
While cities are implementing changes, they need greater support to provide renovation programs for social and affordable housing to develop new home construction that meets climate neutrality and environmental goals, affordability and accessibility standards. At the same time, EU funding instruments reflect local priorities and reality as they must be better coordinated and accessible.
Embedding housing principles as Humans Right into the green transition will help the EU not only be sustainable, but also foster a transition to a housing system that is fair, resilient and inclusive.
A call to action
If you want to reach climate neutrality by 2050, you won’t have time to lose. In collaboration with the EU’s Natural Recovery Act, the rapid and ambitious implementation of the energy performance of the Building Directive is essential to achieving its 2030 goals and laying the foundation for a fair and sustainable future.
Despite political pressure, the EU should focus on implementing recently adopted directives and regulations rather than adding further uncertainty to the already complex political landscape.
Cities are ready to lead this transformation. But they can’t do it alone. The EU and member states will work closely with city governments to empower them through direct access to funding, and call for climate, environment and housing policies to support the same goals.
Building transitions must be more than reducing emissions. No matter how much income or housing tenure, everyone should be able to live in a decent, energy efficient, and quality home.
If we do this right, we will not simply reduce carbon and help restore nature, but ensure a better future for the European people.
Recommended links
Eurocities Articles – The Right to Access Affordable High Quality Housing Eurocities Report – The First Action of Housing: Insights from the articles of 5 European Cities Eurocities – The Cities Lead the articles of Energy Poverty Eurocities.
This commentary was compiled in collaboration with Europe’s Sustainable Energy Week (EUSEW) 2025. For more information, see ec.europa.eu/eusew.
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