In European countries, buildings are the major energy consumers due to the general low energy performance of the existing building stock. To achieve the ambitioned targets for emissions reduction, it will be necessary to take actions for its large scale renovation. However, today's standards are mainly focused on new buildings, guiding the improvement of the energy performance of the existing buildings into expensive processes and complex procedures that seldom are accepted by users, owners or promoters.

This report sets out the positive and negative impacts of improvements in energy efficiency in buildings that could come about through a recast of the Energy Performance Buildings Directive (EPBD). Successive studies have shown that energy efficiency offers many of the most cost-effective options for meeting global emission targets. In many cases, energy efficiency measures have been shown to be ‘negative cost’, meaning that it would be economically advantageous to implement them.

Global warming and environment problems caused by the excessive emission of greenhouse gases (GHGs), along with rapid economic development has attracted the attention of many countries and regions of the world. Reducing GHG emissions is essential to mitigate the threat of global warming. Household carbon (dioxide) emissions have been recognized as one of the most important contributors to climate change, with a significant impact on both the local and global environment, and various policy instruments have been implemented by governments to bring about the reduction.

A new analysis framework is developed and applied to assess the benefits of building energy efficiency policies and programs. One of the main advantages of the new energy productivity analysis is that it accounts for both economic and energy performances of energy efficiency actions using only one metric. Specifically, the approach applies the concept of energy productivity to the building sector and accounts for both value added and energy savings of energy efficiency measures.

The German government has developed a variety of policy instruments intended to reduce national CO2 emissions. These instruments include a programme administered by KfW bank, which aims at improving the energy efficiency of buildings. It provides attractive credit conditions or subsidies to finance refurbishment measures which improve the energy efficiency of buildings significantly. The refurbishment programme leads to a reduction in energy use, which benefits private investors by reducing their energy bills.