Today, buildings still account for almost half of the global energy consumption and carbon emission. This highlights the necessity to increase energy efficiency requirements worldwide in a common effort to reduce the construction sector's impacts on the environment. The current energy policies are driving toward a design that relies on airtight and highly insulated envelopes. As a consequence, energy efficient houses are found to have insufficient indoor air change rates, impacting on the indoor air quality and resulting in higher latent loads.

The economics of energy efficiency programmes have been subject to considerable academic debate lasting well over three decades now. In this paper, we contribute to this debate by reviewing the costs and benefits of a specific type of policy+ instrument that recently gained significant traction in Europe – Energy Efficiency Obligations - EEOs. Following the introduction of the EU Energy Efficiency Directive in 2012 the number of EEOs in Europe has grown from five schemes to now 16 EEOs in operation or planned across the EU.