The European Union has set aside 43 billion euros to help improve the energy efficiency of private homes through the Recovery and Resilience Facility (RRF), a key part of its plan to recover from the economic impact of the Covid-19 pandemic. This funding model is based on "milestones and targets," meaning member states commit to renovating a certain number of homes and receive payments based on these declared goals, without needing to prove actual energy savings. However, a recent report by the European Court of Auditors has raised concerns about how effectively this money is being used. According to the report, published on June 17, 2026, nearly one fifth of the funds were allocated without requiring a minimum improvement in the energy performance of the buildings. This lack of strict requirements has led to a focus on quick, short-term projects rather than long-term, more impactful renovations. The report notes that the current measures only result in "moderate energy savings" and suggests that future funding should prioritize projects that offer the greatest potential for reducing overall energy use. The audit reviewed programs in Belgium, Italy, Cyprus, and Lithuania and found that the system lacks proper tracking of who benefits from the funds and how much energy is actually saved. A country could declare the renovation of 100,000 homes and receive the corresponding funding without anyone in Brussels being able to verify the actual energy savings or the specific beneficiaries. The RRF, which totals nearly 724 billion euros, operates on the principle of declared milestones rather than on detailed, justified expenses. Of the 43 billion euros allocated for housing renovation, 8% was distributed using a tracking system that prioritizes the speed of implementation over the verification of results. The European Court of Auditors estimates that 36.3 billion euros were used for moderate-scale renovations, which generate between 30 to 60% energy savings, while 7.1 billion euros were allocated without any minimum energy savings requirement. Of 111 examined renovation measures, only three included specific energy savings targets, with the rest focusing on the number of homes renovated rather than the energy benefits achieved. Residential buildings account for about 25% of the EU's total energy consumption, and nearly 75% of European buildings are considered to have poor energy performance. The potential for energy savings is significant, but public funds have not always been directed toward the most effective projects. The European Commission has proposed continuing this type of funding in its 2028-2034 budget, showing that the debate is ongoing. The head of the audit at the European Court of Auditors, Nikolaos Milionis, emphasized that EU funds should be used for projects with the highest potential for reducing energy use, but current RRF funds have often been spent on easier projects rather than those with the greatest impact.