The building sector, which consumes the most energy and emits the largest amount of CO2 of any, is nonetheless the sector with the greatest leverage to fight energy waste. While not subject to the European Emission Trading Scheme, the sector is at the centre of attention, as it could enable member States to comply with their challenging Kyoto targets with very little negative side effects. In this ground breaking report Cheuvreux explain why more innovation is needed from policy makers before the true potential of this sector can be unlocked for investors.