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August 28, 2024
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Welcome to ASHRAE's European Policy and Funding Update! This monthly publication features information on policy and funding-related activities of interest to ASHRAE members in Europe. Archives of previous updates are available from the
ASHRAE European Policy and Funding Updates webpage. |
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EHPA report on the competitiveness of the heat pump sector in Europe
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On 24 July, the European Heat Pump Association (EHPA) published a report on the competitiveness of the heat pump sector in Europe. The report states that over the past decade, the sector has witnessed robust growth, with heat pump sales increasing annually. By 2022, the cumulative number of installed heat pumps across Europe reached 20 million units, doubling the stock from 2017. In 2023, the sector faced a significant challenge, marking its first decline in sales in a decade. Sales dropped by 6.5% across 21 European countries, bringing the total number of heat
pumps sold in these regions to approximately 2.8 million units. This drop contrasts sharply with the sector’s previous years of double-digit growth rates, where sales increased by 34% in 2021 and 37% in 2022.
Nevertheless, despite numerous challenges, Europe remains a global leader in heat pump technology, with a manufacturing base that produced over 4.8 million units in 2022. Expansion plans are underway, with several manufacturers announcing increased production capacities in anticipation of future demand.
However, to achieve the EU’s ambitious climate targets, specifically the installation of 60 million heat pumps by 2030, significant policy intervention is required. Without this, the current trajectory threatens to derail progress toward the EU’s 2050 net-zero goals. The sector is at a critical juncture where strong and supportive policies are essential to rejuvenate growth, enhance competitiveness, and secure Europe’s leadership in the global heat pump market.
Therefore, EHPA recommends that the EU and member states implement and maintain stable, long-term policies that support the deployment of heat pumps, including financial incentives and subsidies. Moreover, there is a need for continued investment in R&D to improve the efficiency and affordability of heat pump technologies.
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Von Der Leyen’s aims for a Clean Industrial Deal and a European preference for clean tech
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On 18 July, before her re-election for a second term as the President of the European Commission, Ursula von der Leyen presented her Political Guidelines for the next mandate. Competitiveness emerges as a key policy priority with simplifying and expediting business processes within the EU being a crucial objective. As a key component of the competitiveness priority, Von Der Leyen noted that the Commission will deliver a Clean Industrial Deal in the first 100 days of the new mandate and an Industrial Decarbonization Accelerator Act to support industries and companies, especially those in energy-intensive sectors, in the transition. She announced that
the Commission will scale up and prioritize investment in clean energy infrastructure and technologies such as grid infrastructure, digitalization of the energy system, and storage capacity. A suggested European Competitiveness Fund would ensure new investment capacity as part of the next EU budget to provide financial support for strategic clean technologies and ensure they are manufactured in Europe.
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Key takeaways from the Energy Cities Annual Forum 2024
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On June 26, a session on 'Heating and Cooling Decarbonization,' co-organized with the REDI4HEAT project and the Covenant of Mayors, highlighted the crucial role of transforming heating and cooling systems to reduce Europe's carbon footprint. Key examples included Vienna's strategy to achieve climate neutrality by 2040 through geothermal energy and a major heat pump project. Budapest aims to switch a third of its district heating to geothermal sources by 2035 despite legislative and governmental challenges. Munich plans to transition from natural gas to sustainable energy by 2045, focusing on district heating densification and geothermal
development. The session underscored the importance of tailored approaches, stakeholder involvement, and engaging citizens through trust-building and education to support successful decarbonization efforts.
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Portugal’s Competition Authority fines an HVAC company for a breach of competition law
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The AdC, the Portuguese state Competition Authority, fined an HVAC systems supplier for breaching competition laws through a vertical agreement with its dealers. The company, which provides products like boilers and air conditioners, was found to have:
• Imposed Service Prices and Geographic Restrictions: The agreement set prices for after-sales services and restricted dealers to specific geographic areas for providing these services.
• Anti-Competitive Practices: The company’s actions, based on clauses since 2006, involved dividing the market and setting service prices, which are prohibited under competition law.
The company cooperated fully with the AdC, accepted the factual findings, and settled by paying a fine of €103,000. This fine was reduced by 30% due to the company’s cooperation.
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New German heating legislation enhances local heating and cooling strategies
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Germany’s recent legislation targets achieving climate neutrality in heating and cooling by 2045 through the Building Energy Act (GEG) and Local Heat Planning Act (WPG). Municipalities must draft heat plans by June 2026 (for cities over 100,000 residents) or by June 2028 (for smaller municipalities), with simplified procedures for those under 10,000 residents. The law mandates transitioning to renewable heating technologies and ensures climate-friendly heat sources in district heating networks. Financial support of €500 million has
been allocated, though concerns about its adequacy persist. Challenges include a shortage of skilled workers, financial constraints, and the need for additional analysis on the impacts of heat planning on the power grid.
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Leading the Heating and Cooling Shift at the Paris 2024 Olympics
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Ahead of the Paris 2024 Olympics, several sustainable district heating and cooling projects were launched in the city. Key initiatives included a new geothermal district heating network for the Olympic Village, ambient cooling for venues like the Grand Palais using Seine River water, and data centers providing waste heat to local facilities. These projects highlight the potential of district heating and cooling systems to meet urban energy needs while reducing carbon emissions, setting a precedent for future sustainable infrastructure developments.
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Significant policy changes are needed to incentivize UK households to switch to heat pumps
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The UK government faces significant challenges in meeting its 2035 goal of phasing out fossil fuel boilers due to low heat pump uptake. In 2023, only 60,244 heat pumps were sold, far short of the 600,000 annual targets set for 2028. Experts emphasize the need for urgent policy changes to boost adoption. Home heating, responsible for 18% of the UK’s emissions, is a critical area for achieving broader climate goals, yet less than 1% of homes used heat pumps as of 2021. Despite government grants, just 60,244 heat pumps were sold in 2023, far below the government’s target. Grants were increased in 2023, but uptake remained low. Experts stress the need for further incentives and policy changes, including rebalancing electricity and gas prices to
make heat pumps more attractive.
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European Heat Pump Forum & Award 2024
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On
25-26 September 2024,
the European Heat Pump Association (EHPA) will host the European Heat Pump Forum & Award. The event will gather top policymakers and industry actors to celebrate the EHPA’s 24th anniversary.
More information is available here.
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Chillventa 2024
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From
8 to 10 October 2024,
EHPA will be exhibiting at Chillventa, the exhibition for refrigeration, air conditioning, ventilation, and heat pump technologies taking place in Nuremberg, Germany.
More information is available here.
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Geothermal Heat Pump Days 2024
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From
16 to 18 October,
the European Geothermal Energy Council will host the Geothermal Heat Pump Days 2024 which aims to bring together policymakers, scientists, and industry experts to address the upcoming climate and energy challenges. Participants will gain valuable insights into the latest advances, innovations, and best practices shaping the future of geothermal heat pumps.
More information is available here.
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Heat Pump Day 2024
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On
21 October,
EHPA will hold an event to celebrate heat pump technology. Stakeholders from across the globe will be joining forces to educate, inform, and exchange on the benefits and innovations of heat pump technology.
More information is available here.
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Energy Cities webinar on engaging citizens in heating projects
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On
24 October 2024,
Energy Cities will host a webinar dedicated to the engagement of citizens in heating projects. During this 1 hour and half webinar, speakers will discuss how municipalities can support the implementation of the most recent EU legislation on buildings’ decarbonization, as well as tools and best practices of collaboration between municipalities and energy communities on this topic.
More information is available here.
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EU
EUROPEAN COMMISSION: The European Commission is made up of 27 Commissioners, 1 for each Member State, and represents the interests of the EU as a whole. Every Commissioner is in charge of a Directorate-General (DG) that can be compared to a Ministry at national level. The European Commission proposes legislation in the form of Regulations and Directives and submits them to the Parliament and Council for discussion and adoption.
EUROPEAN PARLIAMENT:
The European Parliament is made up of 705 MEPs (see below) that are directly elected by EU citizens in 27 Member States.
MEP: Member of the European Parliament, a co-legislator within the EU that is made up of representatives from political parties throughout Member States.
COUNCIL OF THE EU:
Co-legislator, made up of representatives from Member State Governments. Has a six-month rotating presidency, currently held by the Czech Republic until the end of 2022.
EUROPEAN COUNCIL: The European Council is made up of the leaders of the EU member states, commonly known as EU27. It defines the EU’s overall political direction and priorities but does not pass laws.
REGULATION:
EU legislative act that is binding in its entirety and is to be applied in its entirety across the EU by all EU Member States.
DIRECTIVE:
EU legislative act that sets out a goal that all EU Member States must achieve. However, it is up to the EU Member States to adopt their own laws on how to achieve the EU goals enshrined in the Directive.
HORIZON EUROPE:
is the EU’s main and biggest Research and Innovation programme for the period of 2021-2027. The programme has an overall funding of €95,5 billion. The program is divided into three pillars: open science, global challenges & industrial competitiveness and open innovation.
INVESTEU:
The InvestEU Programme builds on the successful model of the Investment Plan for Europe, the Juncker Plan. It brings together, under one roof, the European Fund for Strategic Investments and 13 EU financial instruments currently available. Triggering at least €650 billion in additional investment, the Programme aims to give an additional boost to investment, innovation and job creation in Europe.
EUROPEAN GREEN DEAL:
is a set of policy initiatives by the European Commission with the overarching aim of making Europe climate neutral in 2050. The plan is to review EU’s energy and climate laws to bring them in line with this ambition. Green Deal also introduces new legislation on the circular economy, building renovation, biodiversity, farming and innovation.
FIT-FOR-55-PACKAGE:
The European Commission’s work program for 2021 included the revisions and initiatives linked to the European Green Deal climate actions and in particular the climate target plan’s 55 % net reduction target are presented under the Fit for 55 package. The package is compiled of two parts, released on 14 July 2021 and 14 December 2021.
REHVA:
is the association of European heating, ventilation and air-conditioning associations, based in Brussels.
You can find all relevant EU building policy related information in this useful document.
UK
BILL: A bill is a proposal for a new law, or a proposal to significantly change an existing law. A bill may start in either the Commons or the Lords and must pass a series of stages in each Houses. Once the bill has been agreed by both Houses, it receives Royal Assent and becomes an Act of Parliament.
HOUSE OF COMMONS: the House of Commons is the lower house and de facto primary chamber of the Parliament of the United Kingdom. Like the upper house, the House of Lords (see below), it meets in the Palace of Westminster. The Commons is an elected body consisting of 650 members known as members of Parliament (MPs). Members are elected to represent constituencies by the first-past-the-post system and hold their seats until Parliament is dissolved.
HOUSE OF LORDS: The House of Lords scrutinises bills that have been approved by the House of Commons. It regularly reviews and amends Bills from the Commons. While it is unable to prevent Bills passing into law, except in certain limited circumstances, it can delay Bills and force the Commons to reconsider their decisions.
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