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1. Member States shall provide appropriate financing, support measures and other instruments able to address market barriers in order to deliver the necessary investments identified in their national building renovation plan to transform their building stock into zero-emission buildings by 2050.

2. Member States shall ensure that applications and procedures for public financing are simple and streamlined in order to facilitate access to financing, especially for households.

3. Member States shall assess and, where appropriate, address barriers related to up-front costs of renovations.

4. When designing financial support schemes for building renovation, Member States shall consider whether to use revenue-based parameters. Member States may use the national energy efficiency funds, where such funds are set up pursuant to Article 30 of Directive (EU) 2023/1791, to finance dedicated schemes and programmes for energy performance renovations.

5. Member States shall take appropriate regulatory measures to remove non-economic barriers to building renovation. With regard to buildings with more than one building unit, such measures may include removing unanimity requirements in co-ownership structures, or allowing co-ownership structures to be direct recipients of financial support.

6. Member States shall make best cost-effective use of national financing and financing available established at Union level, in particular the Recovery and Resilience Facility, the Social Climate Fund, the Cohesion fund, InvestEU, auctioning revenues from emission trading pursuant to Directive 2003/87/EC of the European Parliament and of the Council and other public funding sources. Those funding sources shall be deployed consistently with a path to achieving a zero-emission building stock by 2050.

7. To support the mobilisation of investments, Member States shall promote the effective development and use of enabling funding and financial tools, such as energy efficiency loans and mortgages for building renovation, energy performance contracting, pay-as-you-save financial schemes, fiscal incentives, for example reduced tax rates on renovation works and materials, on-tax schemes, on-bill schemes, guarantee funds, funds targeting deep renovations, funds targeting renovations with a significant minimum threshold of targeted energy savings and mortgage portfolio standards. They shall guide investments into an energy-efficient public building stock, in line with Eurostat guidance on the recording of energy performance contracts in government accounts. Member States may also promote and simplify the use of public-private partnerships.

8. Member States shall ensure that information about available funding and financial tools is made available to the public in an easily accessible and transparent manner, including by digital means.

9. The enabling funding and financial tools may include renovation loans or guarantee funds for energy performance renovations, including in combination with relevant Union programmes, where applicable.

10. By 29 May 2025, the Commission shall adopt a delegated act in accordance with Article 32 supplementing this Directive by establishing a comprehensive portfolio framework for voluntary use by financial institutions that supports lenders in targeting and increasing lending volumes provided in accordance with the Union’s decarbonisation ambition and relevant energy targets, in order to effectively encourage financial institutions to increase lending volumes provided for energy performance renovations. The actions set out in the comprehensive portfolio framework shall cover increasing lending volumes for energy renovations and shall include suggested safeguards to protect vulnerable households through blended funding solutions. The framework shall describe best practices to encourage lenders to identify and act upon the worst-performing buildings within their portfolios.

11. Member States shall facilitate the aggregation of projects to enable investor access as well as packaged solutions for potential clients. Member States shall adopt measures that promote energy efficiency lending products for building renovations, such as green mortgages and green loans, secured and unsecured, and ensure that they are offered widely and in a non-discriminatory manner by financial institutions and, are visible and accessible to consumers. Member States shall ensure that banks and other financial institutions and investors receive information on opportunities to participate in the financing of the improvement of the energy performance of buildings.

12. Member States shall put in place measures and financing to promote education and training with a view to ensuring that there is a sufficient workforce with the appropriate level of skills corresponding to the needs in the building sector, especially targeting SMEs, including microenterprises, as appropriate. One-stop shops established pursuant to Article 18 may facilitate access to such measures and financing.

13. The Commission shall, where appropriate and upon request, assist Member States in setting up national or regional financial support programmes with the aim of increasing the energy performance of buildings, especially of existing buildings, including by supporting the exchange of best practice between the responsible national or regional authorities or bodies. Member States shall ensure that such programmes are developed in a way that they are accessible to organisations with lower administrative, financial, and organisational capacities.

14. With due regard to vulnerable households, Member States shall link their financial measures for energy performance improvements and reduced greenhouse gas emissions in the renovation of buildings to the targeted or achieved energy savings and improvements, as determined by one or more of the following criteria:

(a) the energy performance of the equipment or material used for the renovation and the related greenhouse gas emission reduction; in which case, the equipment or material used for the renovation is to be installed by an installer with the relevant level of certification or qualification and shall comply with at least minimum energy performance requirements for building elements or higher reference values for an improved energy performance of buildings;

(b) standard values for the calculation of energy savings and greenhouse gas emission reduction in buildings;

(c) the improvement achieved due to such renovation by comparing energy performance certificates issued before and after renovation;

(d) the results of an energy audit;

(e) the results of another relevant, transparent and proportionate method that shows the improvement in energy performance, for example by comparing the energy consumption before and after renovation with metering systems, provided it complies with the requirements set out in Annex I.

15. From 1 January 2025, Member States shall not provide any financial incentives for the installation of stand-alone boilers powered by fossil fuels, with the exception of those selected for investment, before 2025, in accordance with Regulation (EU) 2021/241, Article 7(1), point (h)(i), third indent, of Regulation (EU) 2021/1058 and with Article 73 of Regulation (EU) 2021/2115 of the European Parliament and of the Council .

16. Member States shall incentivise deep renovation and staged deep renovation with higher financial, fiscal, administrative and technical support. Where it is not technically or economically feasible to transform a building into a zero-emission building, a renovation resulting in at least a 60 % reduction of primary energy use shall be considered to be a deep renovation for the purposes of this paragraph. Member States shall incentivise sizeable programmes that address a high number of buildings, in particular the worst-performing buildings, such as through integrated district renovation programmes, and that result in an overall reduction of at least 30 % of primary energy use, with higher financial, fiscal, administrative and technical support, according to the level of performance achieved.

17. Without prejudice to their national economic and social policies and to their systems of property law, Member States shall address the eviction of vulnerable households caused by disproportionate rent increases following energy renovation of their residential building or building unit.

18. Financial incentives shall target, as a priority, vulnerable households, people affected by energy poverty and people living in social housing, in accordance with Article 24 of Directive (EU) 2023/1791.

19. When providing financial incentives to owners of buildings or building units for the renovation of rented buildings or building units, Member States shall aim at financial incentives benefiting both the owners and the tenants. Member States shall introduce effective safeguards, to protect in particular vulnerable households, including by providing rent support or by imposing caps on rent increases, and may incentivise financial schemes that tackle the upfront costs of renovations, such as on-bill schemes, pay-as-you-save schemes or energy performance contracting, as referred to in point (33) of Article 2 and Article 29 of Directive (EU) 2023/1791.