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pensiveCO2 emission reductions of any economic sector. Realising this potential also providesadditional economic benefi ts, particularly in terms of increased energy security. This paper examines the implementation of the EU’s Energy Performance of Buildings Directive (EPBD) in England and Wales. It questions the potential effectiveness of the EPBD to deliver substantial emission reductions based upon shortings of the two main regulatory tools within the EPBD framework. The paper also draws from literature on the ‘behavioural barrier’ to energy effi ciency that suggests that emission reductions will be unlikely in the absence of widespread change in the way in which energy is currently used by building occupants. The analysis is timely because transitioning this sector to low to zero carbon is regarded as integral to meeting emission reduction targets set for 2020 and 2050, and protecting against the risk of severe shortages in energy supply. The potential effectiveness of the EPBD is also signifi cant because it is representative of the forefront of regulatory techniques to address a problem of the magnitude of climate change. INTRODUCTION The EU’s Energy Performance of Buildings Directive (EPBD) is internationally regarded as the leading regulatory framework to improve the energy effi ciency of The two key regulatory tools within the EPBD framework are building standards mandating minimum energy performance requirements for new buildings and ‘major renovations’,and Energy Performance Certifi cates (EPCs).2 There is an important interrelationship between these two tools with limitations on the application of building standards potentially offset by the broad educative value of EPCs. However, there is also a risk that building standards and EPCs will be insuffi cient to adequately curb energy consumption levels across England and Wales. This is because a building that incorporates greater energy effi ciency and certifi cation to this effect does not automatically reduce emissions of carbon dioxide (CO2). It is a recurring issue for all forms of environmental regulation, in terms of whether any environmental objective can ever be achieved in the absence of trying to bring about a better relationship between regulated parties and their environment. The EU has sought to tighten this framework through a recast directive to be transposed by July The recast EPBD is a stronger framework but this paper argues there is further scope to realise the emission reduction potential of the building sector. It must also be emphasised that other areas of regulation may ultimately have a bearing on the potential effectiveness of the EPBD. These include product effi ciency standards, moary and fi scal incentives for households and businesses to invest in energy effi ciency, and pricing controls to raise the cost of fossil fuel based energy relative to renewable These areas warrant separate