Energy poverty is a pressing issue in the EU, affecting millions of households. It occurs when people cannot afford essential energy services, such as heating, cooling or lighting, negatively impacting health, well-being and social inclusion. In 2022, more than 41 million Europeans (9.1% of the population) could not keep their homes adequately warm;  this increased to 10.6% in 2023.

In Central and Eastern Europe (CEE), energy poverty is especially prominent in multi-family apartment buildings (MFABs) built during the Soviet Union era when very cheap gas was available, reflected in often very energy-inefficient building design. 

EU policies addressing the renovation of MFABs centre primarily on energy efficiency and decarbonisation goals, driven by the Energy Performance of Buildings Directive (EPBD), which focuses on reducing energy consumption during a building’s operational phase. The EPBD and the Energy Efficiency Directive both require Member States to outline targeted plans for the progressive renovation of their residential building stock (with priority to the worst-performing buildings) in their national energy and climate plans. for the progressive renovation of the residential building stock, prioritising the worst-performing buildings.

This assessment focuses on where EU policies directly promote action for energy poverty alleviation and renovation of MFABs to support the most vulnerable. The policy framework for the EU and the three partner countries (Lithuania, Bulgaria and Hungary) was examined specifically for recognition of resource centres – a local platform where residents can access comprehensive information, technical assistance and financial support for energy-efficient home renovations – and Neighbourhood Energy Sufficiency Roadmaps (NESRs) – integrated neighbourhood approaches to climate and energy policy that promote sufficient access to energy.

This report is designed for policymakers on EU, national and local level. It combines the mapping of policies relevant for renovation and energy poverty with insights about their implementation and impact, and key priorities for policy framework adjustments.