Climate change is the EU’s top priority. Despite all efforts to date, European countries in 2006 were still wasting at least 20% of their energy due to inefficiency. If more stringent standards to buildings were applied, the EU could realize an energy saving potential of over 20 % by 2020. This study looks at how the European Union (EU) is planning to tackle this issue by introducing energy savings measures and rigorous requirements for buildings. It discusses the various energy efficiency initiatives currently being run in the EU, with a specific focus on the implementation of the European Directive on the Energy Performance of Buildings (EPBD) and how it will affect the market for building technology products and services in the future.