EU Pushes Housing and Energy Policy Alignment Amidst Poverty Crisis
The EU is accelerating efforts to align housing and energy policies to address affordability and energy poverty, warning that the green transition could deepen inequality without coordinated action. Experts emphasize the need for integrated strategies, targeted support, and careful implementation to ensure a fair transition and prevent residents from being priced out of renovated areas.
The European Union is intensifying efforts to tackle the intertwined crises of housing affordability and energy poverty. Officials warn that the bloc’s green transition risks exacerbating inequality unless policy frameworks are aligned at local and national levels.
At a Euractiv event on May 28, experts from the European Commission, housing bodies, and research institutions emphasized that energy poverty and housing quality are inseparable challenges requiring coordinated government responses. Véronique Marx from the Commission’s Directorate-General for Energy highlighted energy poverty as a complex issue caused by low income, high energy prices, and lack of access to energy efficiency in buildings. The Commission's immediate focus is on implementing existing EU frameworks, including the Energy Performance of Buildings Directive and the Energy Efficiency Directive.
Jakub Sokołowski, an economist, defined energy poverty as the inability of households to properly heat or cool their homes due to low incomes and high energy prices. He urged policymakers to link affordability issues with targeted support for households before the EU’s Emissions Trading System (ETS) extends to buildings and road transport in 2028. A Social Climate Fund, operational from 2026, aims to mitigate higher carbon costs for lower-income households.
Sorcha Edwards of Housing Europe cautioned against a green transition that worsens household finances or leads to residents being priced out of neighborhoods due to renovation programs. Pedro Palma from NOVA University of Lisbon identified poor building energy performance as a key driver of energy poverty, advocating for better coordination between national and local mitigation strategies. Dimitrios Arapis, vice-mayor of Piraeus, a pilot municipality in the EU co-funded LOCATEE project, stressed that energy poverty involves housing quality, urban resilience, and social fairness, not just energy bills. The Commission's European Affordable Housing Plan aims to increase supply, streamline permitting, and improve market transparency, with a European Housing Summit and Alliance planned from 2026.