In cooperation with the Energetski institut Hrvoje Požar (EIHP), Economic Consulting Associates Limited (ECA) prepared a study for the Energy Community Secretariat (EnCS), focusing on how energy efficiency improvements in buildings can support Contracting Parties in tackling energy poverty.

At the beginning of the study, examples are presented that illustrate how energy poverty can be addressed through energy efficiency measures and building renovation. Both EU Member States and Contracting Parties increasingly recognise the value of the Energy Efficiency First (EE1st) principle, which prioritises energy efficiency as the first and most cost-effective solution when planning energy systems and policies.

Energy poverty is often closely linked to poorly performing buildings, where high energy consumption leads to increased costs and inadequate living conditions, particularly for vulnerable households. The study emphasises that improving the energy performance of buildings—through measures such as renovation, better insulation, and more efficient heating systems—can significantly reduce energy demand. By lowering energy needs rather than relying solely on financial support to cover energy bills, energy efficiency offers a long-term and sustainable approach to addressing the root causes of energy poverty.

Financing remains a key challenge, particularly when addressing the needs of economically vulnerable groups. The study outlines several financing approaches, with a strong emphasis on grant funding, public co-financing, and innovative models such as on-bill financing. These mechanisms are designed to remove upfront financial barriers and ensure that energy efficiency improvements do not place additional pressure on households already at risk of energy poverty. By allowing renovation costs to be repaid through energy savings rather than increased expenses, such approaches support a fair and inclusive transition, enabling vulnerable households to benefit from energy efficiency measures without compromising their financial stability.

Building on the findings of the study, the second part emphasises the importance of moving from policy frameworks to practical implementation. In this context, adult training and capacity-building are highlighted as essential tools for improving energy efficiency, as they enable individuals to better understand, access, and benefit from available measures. The study further underlines the need for stronger institutional coordination, targeted financing mechanisms, and accessible information and guidance to ensure that energy efficiency measures effectively reach households affected by energy poverty.

The study places strong emphasis on adult training and education as essential components of effective energy efficiency policies, particularly in the context of addressing energy poverty. It recognises that energy poverty is not only driven by financial constraints or inefficient buildings, but also by limited access to information, complex administrative processes, and a lack of understanding of available energy efficiency measures. Adult training helps bridge this gap by empowering individuals to better understand their energy consumption, navigate support schemes, and make informed decisions regarding building renovation and energy use.

 By improving energy literacy, adult education enables households—especially those in vulnerable situations—to access financial mechanisms, engage with advisory services, and benefit from energy efficiency improvements without additional financial pressure. The study further highlights that education and capacity-building play a crucial role in ensuring fair and inclusive implementation of energy efficiency measures, preventing the exclusion of households that may otherwise lack the knowledge or confidence to participate. In this way, adult training acts as a key link between policy frameworks and real-world impact, translating energy efficiency strategies into practical, accessible actions that support both social inclusion and long-term sustainability.

The findings of the study point to the importance of aligning policy ambition with practical delivery. Energy efficiency measures, when supported by suitable financing instruments and effective guidance, have the potential to move from strategic objectives to tangible improvements at household level, ensuring that efforts to reduce energy poverty result in real and lasting change.

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