Circular economy (CE) as a new model of economic development promotes the maximum reuse/recycling of materials, goods and components in order to decrease waste generation to the largest possible extent. It aims to innovate the entire chain of production, consumption, distribution and recovery of materials and energy according to a cradle to cradle vision.

This paper provides a review of research that addresses the relationship between indoor temperatures and health outcomes, taking into consideration studies that focus heat or cold exposure within the household context. It aims to extend previous research by considering both indoor temperatures from existing housing, and empirical studies that focus on energy efficiency measures and subsequent health impacts. To achieve this aim, a literature review was undertaken, combining engineering and health databases.

This study presents three cost-optimal calculations. The overall aim is to provide a deeper analysis and to provide additional guidance on how to properly implement the cost-optimality methodology in Member States. Without proper guidance and lessons from exemplary case studies using realistic input data (reflecting the likely future development), there is a risk that the cost-optimal methodology may be implemented at suboptimal levels.