1 Introduction

2 Europe’s buildings-related emissions are not falling fast enough
2.1 Energy renovations
2.2 Progress on deploying clean-energy solutions

3 The lack of an attractive investment case
3.1 The long wait for economic returns
3.2 Electricity is relatively overpriced
3.3 Lack of upfront capital and borrowing constraints
3.4 Split incentives
3.5 Administrative burden and disaggregated demand

4 Europe’s new carbon price is a revolutionary step

5 Missing money: the need for more investment
5.1 The investment gap
5.2 EU financing
5.3 New funding: ETS and ETS2 revenues and the Social Climate Fund
5.4 Progressive distribution by country

6 Policy options, trade-offs and recommendations

7 Conclusions

References