Buildings are responsible for around 40% of CO2 emissions in the EU. To decarbonise this sector, the European Commission is considering introducing a carbon price. The workshop looked into the opportunities and challenges of a carbon pricing for buildings, starting from the lessons of Germany as a first mover in Europe.
According to the Renovation Wave Communication, to achieve the 55% GHG emissions reduction target by 2030, the EU should reduce buildings’ greenhouse gas emissions by 60%. This can only be achieved by at least doubling the renovation rate as soon as possible. In addition to a substantial revision of the Energy Performance of Buildings Directive (EPBD), the European Commission is considering to include in its upcoming “Fit for 55” package a proposal to cover sectors such as buildings and road transport by an emissions trading scheme. However, the particularities of the building sector, such as the low price-elasticity of energy demand, the ownership structure of buildings and the split incentives dilemma, would require caution and a thorough assessment of the consequences of introducing such policy.
What should be the contribution of a carbon price in the policy mix for a decarbonised building sector? Can it trigger a Renovation Wave and a switch to fully-renewable heating? What needs to be kept in mind when designing a new carbon pricing scheme for buildings?
This workshop, co-organised with the the German Business Initiative for Energy Efficiency (DENEFF), dived into the subject of carbon pricing in buildings by looking at lessons from Germany, where a recently launched carbon pricing scheme for buildings is hotly debated.
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More about our considerations on carbon pricing
In a fast-changing political and economic environment, 2025 was a year of continued efforts to strengthen security, stability, and competitiveness for European businesses.
Throughout the year, our work demonstrated that energy efficiency is not only essential to achieving climate goals, but also a key driver of innovation, energy independence and sustainable long-term growth across Europe.
Strong engagement with policymakers, combined with the successful organisation of the 4th European Energy Efficiency Day, highlighted the importance of collaboration and dialogue in advancing shared objectives. Partnerships across sectors and institutions remained central to delivering impact and shaping effective energy policies.
Looking ahead to 2026, we will intensify our efforts to secure the regulatory certainty that can accelerate the energy transition, while providing businesses with the investment confidence they need and strengthening Europe’s competitiveness.
Read the full Activity Report here.