The promotion of energy end-use efficiency is central in the European policy on climate change, security of supply and completion of the internal energy market. Accordingly, Directive 2006/32/EC aims at removing the barriers that prevent the efficient use of energy and creating a market for energy services. In this respect, it promotes energy efficiency mechanisms such as financing and informative instruments, public procurement requirements and voluntary agreements. This article argues that by creating a market for energy services, Directive 2006/32/EC adopts a free market environmentalism' approach, but fails to establish the conditions required to ensure the viability of such market. Nevertheless, the mechanisms it proposes are likely to contribute positively towards sustainable energy markets.