The positive energy neighbourhood (PEN) approach is gaining traction as a solution to scale up building renovations while involving local communities in the energy transition. 

A recent report highlights how EU policies like the Energy Performance of Buildings Directive (EPBD), Renewable Energy Directive (REDIII), and Energy Efficiency Directive (EED) support PEN principles. 

However, effective national implementation is crucial for realising the potential of PENs. Harmonised definitions, tailored financing, and assessments of social and environmental co-benefits are identified as key factors for success, urging policymakers and the financial sector to take action.