A large-scale energy renovation intervention in existing buildings has been consistently presented as the most significant opportunity to contribute to achieving the European targets for 2030 and 2050. One of the key points for such achievement is the cost-effectiveness of the interventions proposed, which is also closely related to decent housing affordability. Prefabricated modular solutions have been pointed out as a pathway, but there are knowledge gaps regarding both its cost-effectiveness and its environmental performance. Considering a social housing multi-family building in Porto, Portugal, as a case study, this research employs energy simulations, a cost-optimal methodology and a life cycle analysis approach to assess the influence of considering embodied energy and emissions in cost-effectiveness calculations. In general terms, the hierarchical relation between calculated renovation scenarios remain identical, as well as the choice of the cost-optimal combination, which can reduce primary energy needs by 226 kWh/(y.m 2 ). However, embodied carbon emissions and embodied energy of the materials used in the calculations, which are indicative of the sustainability of such interventions, increase the energy and carbon emissions associated to each renovation package by an average of 43 kWh/(y.m 2 ) and 9.3 kgCO 2eq /(y.m 2 ), respectively.Sustainability 2020, 12, 1631 2 of 17 concepts were introduced, such as the nearly Zero-Energy Buildings (nZEB) [6], which are characterized by a high energy performance. The nearly zero or very low amount of energy required in these buildings must be covered to a very significant extent by energy from renewable sources, including energy from renewable sources produced on-site or nearby [6]. Notably, according to this directive, Member States should ensure that from 31 December 2020, all new buildings are built as nZEB [6]. Although this timeline is considered to be determinant for the achievement of the EU targets, many of the current policies still have their main focus on new buildings, which some studies indicate as not being sufficient. The majority of the European building stock has more than twenty years old and present low energy performance [7]. Considering the significant energy reductions that can be achieved by cost-effective energy renovations and that the replacement rate of existing buildings by new buildings is only around 1% to 2% per year [8], there is significant potential for decarbonization of the building stock.To unlock this potential, it is necessary to promote a large-scale energy renovation throughout Europe. There are, however, significant and well-known barriers to overcome [9]. One of the most mentioned barriers concerns the cost of interventions, which is closely linked to the concept of housing affordability [10]. Cities of today are under different kind of constant pressures, such as gentrification and speculation in the housing prices, and some authors argue for the urgent need to guarantee affordable housing [11]. The question of affordabili...