Energy efficiency and social justice: assessing the social risks of the EU Energy Performance of Buildings Directive

A new study examines the EU Energy Performance of Buildings Directive (EPBD) through the lens of social justice, warning that building renovation policies may exacerbate social inequalities if not supported by equitable housing and welfare measures. The paper introduces a Composite Building and Social Vulnerability Index to compare Member States and highlights how national housing systems, energy poverty and public support schemes shape the social outcomes of the green transition.

Improving the energy efficiency of buildings is a cornerstone of the European Union’s climate strategy. Buildings account for a significant share of greenhouse gas emissions, and the revised Energy Performance of Buildings Directive (EPBD) sets ambitious targets to reduce emissions and improve the performance of the existing building stock across Member States.

Yet energy renovation is not only a technical or environmental challenge. It is also a deeply social one. Renovation costs, access to credit, tenure structures, housing market dynamics and public support mechanisms all affect who is able to comply with new requirements and who risks being excluded.

In a new article published in Renewable and Sustainable Energy, Guido Meneghin and Silvana Stefani analyse the EPBD from a social justice perspective, focusing on the risk that climate adaptation policies in the building sector may widen existing social inequalities rather than reduce them. While the Directive sets common objectives at EU level, it leaves wide discretion to Member States in terms of implementation, funding instruments and support schemes.

The authors argue that this flexibility makes national contexts decisive. Differences in the age and quality of housing stock, homeownership patterns, energy poverty, electricity mix and public spending on housing support strongly influence the social impact of renovation policies.

To capture these structural differences, the study introduces a Composite Building and Social Vulnerability Index, combining multiple dimensions related to housing conditions, affordability, energy poverty and institutional capacity. Based on this index, EU countries are grouped into four clusters, revealing markedly different levels of vulnerability to the social costs of the renovation transition.

The analysis shows that in countries where housing systems rely heavily on small private ownership, where energy poverty is persistent and where support schemes are fragmented or unstable, the burden of compliance with renovation requirements may fall disproportionately on low-income households. This dynamic risks producing Matthew effects, whereby those with greater financial resources are better able to benefit from incentives, while more vulnerable groups are left behind.

Italy is discussed as a key case study, illustrating how ambitious energy renovation policies can generate social tensions if not accompanied by targeted and inclusive housing measures. The authors stress that grants, social housing investments and tailored support for vulnerable households are essential to ensure that energy efficiency policies improve living conditions rather than deepen inequality.

“The Green Deal can strengthen social cohesion only if building renovation policies protect vulnerable households, rather than shifting costs onto them,” says Guido Meneghin.

“Without an equitable housing policy, the challenges posed by the EPBD may widen the gap between families who can afford the required upgrades and those who are left behind,” adds Silvana Stefani.

The study concludes that the success of the EPBD will depend not only on climate targets and reporting obligations, but also on the ability of Member States to integrate energy efficiency goals with social and housing policies. Ensuring fairness and accessibility, the authors argue, is crucial for maintaining public trust in the European Green Deal.

Paper reference:
Meneghin G., Stefani S. Energy efficiency and social justice: the European challenge of the Energy Performance of Buildings Directive. Renewable and Sustainable Energy, 2026, 1:0001.
https://doi.org/10.55092/rse20260001