Regulating homeowners is the only way to meet the challenge of transitioning the UK to a net zero economy, according to the Resolution Foundation.
Research by the body found 9m homes in the UK have walls that need significant upgrading.
But doing the works on homes often does not make economic sense, with a typical upfront cost of £8,000 to improve the efficiency of walls taking almost 20 years to recover costs through bill savings.
The works also cause significant disruption.
In terms of making homes greener, the low hanging fruit has been the target while the issue of poorly insulated walls has largely been ignored.
As a result, many property owners assume that improving home efficiency is more straightforward than it is, the Resolution Foundation said in a briefing note.
The think tank suggested that the only way to get people to do the works required is for the government to push through regulation that force people into making changes while covering costs for the poorest.
Four in 10 homes in poorest neighbourhoods have inefficient walls compared to three in 10 in the richest areas.
The think tank said homeowners with assets of less than £100,000 should see costs covered while on assets of £250,000 the homeowner would cover half of costs.
The report added that the construction industry could largely cope with these demands for works but some areas may need local skills accelerators.
