The “Clean Energy for All Europeans” package confirms the pivotal role of the EU building stock in meeting EU 2030 climate and energy targets. In fact, the projected decarbonisation of the EU energy system is mainly based on the renovation of existing buildings and the increased penetration of renewable energies in heating, cooling and power generation.

This paper analyses the expected impacts of the “Smart Finance for Smart Buildings’’ initiative and the proposed changes to the Energy Performance of Buildings Directive and the Energy Efficiency Directive on the emerging energy renovation market. The French energy renovation market is used to illustrate the weaknesses of the proposals. The author concludes that there is a need for a paradigm shift in policy design and funding allocation to meet Europe’s obligations under the 2015 Paris Climate Agreement.