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September 18, 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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European Commission Releases Report on the Future of European Competitiveness
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On 9 September, former Italian Prime Minister and ex-President of the European Central Bank (ECB), Mario Draghi, released the much-anticipated report “The Future of European Competitiveness”. Draghi was tasked by the European Commission to draft this report to provide concrete recommendations to address the EU’s declining growth and boost its global competitiveness. The report fits into Von der Leyen’s broader agenda to modernize the EU economy, promote strategic autonomy, and enhance its industrial resilience against global pressures. In his nearly 400-page report, Draghi states that the EU needs to raise investments
up to €750-800 billion annually – mainly through joint borrowing – to reform the EU. Draghi warns that failing to properly finance digital innovation, decarbonization, and defence will result in a “slow agony” against the US and China.
The report focuses on several key areas to boost the EU's competitiveness in the global market. It covers sectoral policies in energy, energy-intensive industries, raw materials, the automotive sector, digital technologies, transport, defence, and proposes comprehensive strategies for each.
The report crucially calls on the Member States to ensure the recognition of skills and qualifications for clean tech manufacturing, particularly that of heat pumps. Moreover, Draghi recommends coordinating research and development (R&D) efforts and develop EU-level partnership for clean technologies to secure sufficient, world-class R&D support to sustain technologies undergoing rapid transformation, such as heat pumps.
The Draghi report is expected to contribute to the European Council’s Strategic Agenda and the European Commission’s political guidelines which will drive the new mandate over the next five years.
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European Commission Study on Clean Energy R&I Opportunities to Ensure European Energy Security by Targeting Challenges of Distinct Energy Value Chains for 2030 and Beyond
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On 4 September, the European Commission released a study on clean energy R&I opportunities to ensure European energy security by targeting challenges of distinct energy value chains for 2030 and beyond. The research identifies the following issues related to heat pumps:
- Critical Raw Materials (CRMs):
Heat pumps rely on copper, aluminium, and nickel. These CRMs are essential but pose a risk due to growing demand and potential scarcity. Recycling initiatives are being developed, but demand for CRMs is expected to exceed recycled supplies.
- Energy System Vulnerability:
Heat pumps require renewable electricity to operate, making them vulnerable to grid disruptions. Power outages pose a risk to their energy security, but the integration of thermal and electrical storage could enhance their resilience.
- Skills Shortage:
The installation and customization of heat pumps, particularly in industrial applications, require specialized skills. There is already a shortage of trained workers, and this is expected to increase as the demand for heat pumps rises.
- Research and Innovation (R&I):
Proposed interventions focus on developing standards for resilient heat pumps and policies to address grid vulnerabilities and CRM shortages.
There is also a need for further innovation in recycling and CRM substitution. These findings emphasize the importance of addressing challenges that range from manufacturing to installation, to actual end use and grid integration in order to ensure the sustainable deployment of heat pumps across Europe.
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United Kingdom National Updates
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U.K. Continues Toward Heat Pump Targets
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From January to July 2024, over 30,000 certified heat pumps were installed in homes and small businesses, marking a 45% increase compared to the same period in 2023. This surge in heat pump installations is a positive step towards the UK’s renewable energy goals, supported by government incentives and stringent certification standards.
This growth highlights the rising consumer demand for energy-efficient heating solutions as the UK works towards its target of 600,000 annual installations by 2028. The Boiler Upgrade Scheme (BUS), offering up to £7,500 in grants, has been a key driver in the adoption of heat pumps, with 73% more applications submitted in the first half of 2024 compared to 2023. In Scotland, the Home Energy Scotland (HES) Grant and Loan provides similar support, including up to £9,000 for rural households. While
the growth in installations is promising, challenges remain. The Climate Change Committee (CCC) stressed the need for sustained improvements in building emissions, uncertainty over future energy efficiency mandates and the challenges posed by the 2035 ban on fossil fuel boilers.
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Organizations Unite in Call for Mandatory Heat Pump Standard
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A coalition of UK trade bodies and energy groups, including the Heating Trades Network UK (HTNUK), National Energy Action (NEA), the Energy and Climate Intelligence Unit (ECIU), and Microgeneration Certification Scheme Foundation, is urging the government to implement mandatory accreditation for all heat pump installations. This move aims to boost consumer confidence and ensure consistent installation standards. A survey by Which? Magazine found 55% of consumers lack trust in installer-provided information. The coalition argues that mandatory accreditation would improve installation quality, provide unbiased advice, and encourage wider adoption of heat pumps, all of which is key for meeting the target of 600,000 installations annually
by 2028. The group stresses the need for trained, certified installers, particularly for low-income households, to ensure reliable and efficient system usage.
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Events
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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 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 their expertise regarding 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 1.5 hour webinar speakers will discuss how municipalities can support the implementation of the most recent EU legislation on building decarbonization, as well as tools and best practices for collaboration between municipalities and energy communities.
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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