A rise in the so-called 'greenlash' - opposition from people and communities negatively impacted by climate policies - is slowing political progress, especially in the buildings sector, which accounts for 40 percent of European emissions, and where greening our homes, workplaces and public buildings is critical to reach net zero.
The EU has made important progress by launching the renovation wave and passing the European Performance of Buildings Directive (EPBD), which mandates that member states must reduce average primary energy use in residential buildings by 20-22 percent by 2035.
But the shortage of affordable housing means that building retrofits may inadvertently increase financial burdens on renters and homeowners, fuelling a “greenlash” that is feeding into Europe’s already divisive politics.
Housing was high on the agenda for Dutch voters in the recent election, which saw a quarter of the seats going to a far-right party that campaigned explicitly on perceived links between the acute housing crisis and migration.
In Germany, a proposed phaseout of gas boiler sales was met with an enormous political backlash.
Reactions to perceived inequality in green initiatives have led governments to backtrack on or water-down plans. But while this may be a short-term political fix, the consequences of inaction in the long-term will only further entrench inequality when it comes to safe, secure, and energy efficient homes and workplaces.
To turn the tide on greenlash, the new EU parliament must root future climate initiatives in human rights. Ensuring communities aren’t left behind is the only way to widen support for, and ultimately accelerate, decarbonisation initiatives.
The Institute for Human Rights and Business has published a report examining the dynamics of equality and social justice in green housing policy in eight cities worldwide, including four in the EU - Athens, Copenhagen, Lisbon and Prague.
Our findings, the results of a two-year global study, show that some decarbonisation efforts and green investments have exacerbated inequalities in the housing market in cities around the world.
In all four EU cities in our study, we found examples where efforts to increase energy efficient renovations led to higher rents and evictions, (known as 'renovictions').
For example, in Athens, the government-led Exoikonomo energy efficient renovation subsidy programme has largely benefited wealthier households who can afford to invest in upgrades.
Similarly, in Prague, many landlords have benefitted from the EU-funded New Green Savings programme. With rent protections only in place for a year, retrofitting costs have often been passed on to occupants, and many faced eviction due to rent increases they couldn’t afford.
While Copenhagen has slashed its carbon emissions by 42 percent since 2005, progress has pushed some communities out of their neighbourhoods. Greener buildings are often pricier, and climate-friendly developments can drive up land prices and cost of living - a trend labelled “green gentrification”.
Addressing such adverse impacts, notably on already vulnerable individuals and communities, requires efforts that pair green policies with well considered rights-based strategies and mechanisms to help distribute benefits equitably.
Thankfully, our study found examples that are having a positive impact on both people and planet.
In 2023, Portugal created a new housing ministry and scrapped the golden visa scheme launched in the wake of the global financial crisis for foreigners spending over €350,000 on renovating property, or €500,000 on buying it. The scheme exacerbated rising housing costs, with the city becoming the third-most expensive place to rent in Europe, particularly impacting low and middle-income households.
In its place, Portugal launched its new housing plan, Mais Habitação, backed by €2.7bn in investment from the EU Recovery and Resilience Plan. The programme aims to increase supply to tackle the housing crisis by simplifying licencing rules, combating property speculation, increasing publicly owned housing and protecting families through rent caps.
In Copenhagen, an innovative low-carbon real estate company called Home.Earth treats tenants as shareholders, with their returns on investment effectively slashing rents by 20 percent compared to market rates. The company is developing a hub of 158 inclusive homes and commercial space, which will generate just 6 kilograms of CO2 equivalents per square metre per year - well below the mandated 12, with tenants protected by a no eviction policy.
Meanwhile, in the Czech Republic, the Prague Development Company has been established, with a mission to build up to 8,000 public affordable housing apartments by 2030. The company has been given 70 hectares of public land to build energy efficient, cost effective rental units for single parent families, key workers and independent seniors.
It’s essential EU member states take steps to embed human rights obligations and the principles of a just transition into their implementation of the EPBD, including prioritising funding for lower-income, vulnerable and marginalised groups, safeguarding against green gentrification and renovictions, and up-skilling construction workers in retrofit training programmes.
Governments should also ensure that real estate and construction companies aren’t let off the hook from reporting the human rights impacts of their business operations under the Corporate Sustainability Due Diligence Directive ratified last month.
Safe and secure housing is a human right, but it can’t be fulfilled without tackling climate change. However, decarbonisation initiatives that are not grounded in human rights risk exacerbating issues of affordability, gentrification, and energy poverty. This risks driving polarisation, instability, and insecurity, and will set back climate progress with dangerous consequences for citizens, governments and businesses.
To accelerate meaningful climate action, we must ensure initiatives address the needs of marginalised communities - embedding fairness in planning, construction and retrofitting while simultaneously tackling the housing crisis and reducing emissions in our cities and towns.
Respecting people’s fundamental rights is the only way we can create the fair and sustainable societies we need for people and planet to flourish.
Giulio Ferrini, lead author of the report is head of built environment at the Institute for Human Rights and Business, and one of the lead authors of the IHRB report.
Giulio Ferrini, lead author of the report is head of built environment at the Institute for Human Rights and Business, and one of the lead authors of the IHRB report.