Addressing the need for affordable, high-quality, and environmentally sustainable housing will be a key challenge in the European Union in the coming years. The session hosted by the Covenant of Mayors – Europe and the Energy Poverty Advisory Hub (EPAH) during the European Sustainable Energy Week 2025 addressed these critical questions and presented good practices from Zaragoza (ES), Ghent (BE), Italy and the Greek Islands.
Financing and policy integration
Anne Weidenbach, from the Cabinet of Commissioner Jørgensen, highlighted the significant EU funding available:
- €22 billion for social housing and infrastructure
- €6.5 billion from the Cohesion Fund to support 25,000 housing renovations
- Additional resources from InvestEU, LIFE, Horizon Europe, and the Social Climate Fund
However, public funding alone will not suffice. There is a strong push to mobilise private capital through initiatives like the Pan-European investment platform.
The upcoming Citizens Energy Package will focus on reducing energy poverty and ensuring affordable energy for vulnerable groups. Integrated social and energy policies and local, targeted support are seen as key to avoiding new social inequalities.
While the policy frameworks such as the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive (EED) are in place, swift and inclusive implementation must now be the priority.
Addressing energy poverty
The Joint Research Center recently published a study on “Addressing Housing Affordability and Energy Poverty: A Dual Challenge for the EU”. The findings confirm that integrated action at the local level works best, as presented by Giorgos Koukoufikis. Renovation programmes, energy allowances, and tenancy protections need to target the most vulnerable.
Kristina Eisfeld from the Energy Poverty Advisory Hub stressed the importance of accessible support, post-renovation services, and connecting housing transitions to mental health and social wellbeing.
Local innovations and good practices
Zaragoza’s inclusive approach to energy-efficient housing
Lorena Reula, Managing Director of Zaragoza’s Municipal Housing Company, presented the city’s innovative approach to delivering inclusive, energy-efficient housing. Zaragoza combines different financing tools to ensure that energy efficiency is both accessible and equitable.
Tailored municipal grants to support:
- Private owners' associations for comprehensive retrofitting of shared building elements, such as facades.
- Accessibility improvements including the installation of elevators and ramps.
- Targeted renovation subsidies for the most vulnerable households.
- Home refurbishments for individual private owners.
Leveraging EU funds
Through Next Generation EU and Horizon Europe, Zaragoza is also investing in district-level renovations in vulnerable neighborhoods and piloting a Positive Energy District under the NEUTRALPATH project.
A key element of Zaragoza’s strategy is strong social engagement. Each project is supported by on-site assistance services for residents, direct coordination with construction companies and social cooperatives to promote co-creation and peer-to-peer communication among neighbors. This community-driven model helps build trust, ensures residents are fully engaged, and strengthens social cohesion throughout the renovation process.
Zaragoza aspires to become a lighthouse city for district-level energy solutions. Its approach combines immediate relief for energy-poor households with long-term, sustainable neighborhood transformations based on community participation and energy-positive design.
Guidance and support services: Ghent’s approach
David Cis, from the city of Ghent, presented two impactful local projects:
- De Energiecentrale: a one-stop-shop renovation support service offering free renovation guidance and step-by-step, home-tailored renovation plans, supported by loans and subsidies.
- SUPRA: a multi-city renovation accelerator supported by the European Investment Bank, using renovation coaches to guide the energy retrofit of individual dwellings.
Ghent is also actively investing in social housing, aiming to reach 20% social housing by 2050 (currently, social housing makes up 11% of the city’s housing stock). The city is also committed to tackling energy poverty through strong cooperation with welfare actors and energy companies.
One key conclusion is that investing in guidance and support services delivers results: the city has measured that every euro invested in renovation guidance generates €17 in renovation investment.
The EU islands perspective: the integrated way
Kostas Komninos, General Manager of DAFNI, the Network of Sustainable Greek Islands, presented the Greek islands' perspective and the support provided by the Clean Energy for EU Islands initiative. The Greek islands face specific challenges related to housing and energy, driven by their seasonal, tourism-based economy. This dynamic leads to inflated housing prices and limited investment in energy retrofitting. Additionally, the islands’ situation impacts the transport costs of materials and logistics for renovation, while a shortage of local skilled labour further complicates the process. The high number of protected cultural heritage buildings also makes retrofitting particularly challenging.
Despite their significant potential for renewable energy production, the islands still rely heavily on fossil-based energy sources. As these challenges are deeply interconnected, an integrated approach is essential—affordable and decarbonised housing is closely linked to the islands' overall resilience. The GR-eco Islands initiative stands as a flagship example of holistic and sustainable transformation in the Greek islands. It promotes actions such as increased use of renewable energy sources, the development of digital infrastructure, improved energy efficiency, sustainable waste and water management, e-mobility and electrification of transport, and the green transformation of agriculture and tourism.
Citizen-led renovation: a success story
Finally, Carlo Tacconelli, Chief Evolution Officer of EnGreen and pilot leader in the Citizen-led renovation initiative shared with participants the success story of a from Antrodoco (Italy), a small municipality of 2,000 inhabitants in a rural area. The area had available solar and biomass resources and was facing high public-sector lighting bills.
Despite the potential of solar and biomass energy sources and the clear motivation to reduce lighting costs, initial attempts to access subsidies and support from EU programmes for energy communities failed. This was largely due to a lack of trust and the absence of a strong, enabling signal from the EU regulatory framework. In response, the municipality decided to lead a Citizens Energy Community project and focused on building trust around it. This effort resulted in the installation of 10 residential PV systems and the registration of 80 members in the energy community.
Key challenges and recommendations
- Avoid unintended consequences: Subsidies and increased renovation demand risk driving up prices; careful scheme design is needed.
- Citizen engagement: Real-life success stories and energy champions motivate people far more than theoretical advice.
- Tailored approaches: The solutions presented are replicable but local needs, whether urban, rural, or island-specific, must guide renovation strategies.
- Skills and workforce: Upskilling construction professionals remains a bottleneck for scaling renovation efforts.
The session concluded with a clear message: The transition must be citizen-centred, locally adapted, and driven by trust, inclusivity, and practical support.
Resources
- Find the material here and recording here.
- Download the JRC report “Addressing Housing Affordability and Energy Poverty: A Dual Challenge for the EU”
- Visit the Energy Poverty Advisory Hub
Details
- Publication date
- 25 June 2025