Portugal has aligned itself with the European Union’s Renovation Wave, a key initiative under the European Green Deal, recognising the urgent need to decarbonise its building stock. With 75% of EU buildings classified as energy-inefficient, Portugal recognises the necessity to accelerate renovation rates to enhance energy performance and sustainability. In 2021, the country introduced the Long-Term Strategy for Building Renovation (ELPRE), a framework designed to rehabilitate residential buildings while addressing technical, financial, and regulatory barriers. Through targeted policies and incentives, ELPRE promotes energy efficiency, climate resilience, and affordability. It monitors key indicators, including primary energy consumption, renewable energy use, CO2 emissions, and the area of renovated buildings. However, true sustainability extends beyond these factors. The European Green Deal advocates for climate-neutral buildings, considering operational energy, embodied energy (from materials and construction processes), and water efficiency. Therefore, additional indicators, such as embodied energy and water reuse, are essential for tracking progress and aligning with the revised Energy Performance of Buildings Directive (EPBD). The recast of the EPBD in 2024 requires EU member states to replace their existing long-term renovation strategies with National Building Renovation Plans (NBRPs), creating a more structured and ambitious approach to energy efficiency. This study critically assesses ELPRE and proposes key recommendations to strengthen building renovation and conversion efforts. It defines strategic goals for thermal comfort, operational and embodied energy efficiency, and water conservation, ensuring Portugal’s alignment with evolving EU sustainability objectives while enhancing the resilience of its building sector.