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October 16, 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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Ursula von der Leyen Unveils Proposed Team of EU Commissioners
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On 17 September, European Commission President, Ursula von der Leyen, unveiled the list of nominated European Commissioners. Once they are formally confirmed by the European Parliament, the designated Commissioner candidates will lead key portfolios that will drive the EU’s policy in the next five years. The proposed team includes six Executive Vice-Presidents comprised of four women and two men, showcasing a strong focus on regional and gender balance. Once confirmed these Commissioners will have responsibility over the critical energy, industry and climate portfolios. The
proposed Commissioners include:
- Teresa Ribera
(Spain), an Executive Vice-President, will lead efforts for a clean, just, and competitive transition. Ribera is tasked with coordinating the work on the new Clean Industrial Deal to unlock investment and boost European competitiveness. The mission letter can be accessed here.
- Wopke Hoekstra
(Netherlands) will oversee climate policy, net-zero targets, and clean growth initiatives. Hoekstra is tasked with developing the Clean Industrial Deal with a focus on decarbonisation and clean technologies while mobilizing investment through the Innovation Fund. The mission letter can be accessed here.
- Stéphane Séjourné
(France) will manage prosperity and industrial strategy. He will present an Industrial Decarbonisation Accelerator Act, to support European lead markets for the development of clean tech in industry and speed up related planning, tendering, and permitting processes, in particular for energy-intensive sectors. Séjourné will also lead the implementation of the Net Zero Industry Act. The mission letter can be accessed here.
- Dan Jørgensen
(Denmark) will oversee the Energy and Housing portfolio. Jørgensen will focus on upgrading the grid infrastructure and contribute to the energy dimension of the Clean Industrial Deal, helping unlock decarbonisation pathways for industries and putting forward an Action Plan for Affordable Energy Prices. The mission letter can be accessed here.
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Energy Cities Calls on Member States to Act on Their Heating and Cooling Plans
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On 7 October, the Energy Cities released a statement calling the Member States to ensure that municipalities prepare local heating and cooling plans. The new Energy Efficiency Directive (EED) introduces mandatory local heating and cooling plans for municipalities with over 45,000 inhabitants. This requirement is considered a significant opportunity to decarbonize the sector and improve local living conditions. However, according to Energy Cities, most Member States are falling behind in transposing Article 25.6 of the EED. Currently, only
four Member States (Netherlands, Germany, Denmark, Lithuania) have set the necessary legal frameworks, with Germany being the only one to officially transpose Article 25.6. Thirteen Member States are significantly delayed in establishing the necessary frameworks, and only two (Netherlands, Denmark) have implemented comprehensive support mechanisms, including financial, technical, and staffing resources.
Energy Cities emphasizes the importance of increased EU support for local energy transitions, as highlighted in an open letter to the new Energy Commissioner. They recommend eight key features for transposing Article 25.6 effectively, including lowering the population threshold for mandatory plans, aligning with existing planning frameworks, improving data collection, and providing robust technical and financial support. Without immediate action, there is a risk that local planning will become merely
administrative, without real impact on emissions reduction.
| EFILWC Report on the Decarbonization of Residential Heating and Cooling
| On 30 September, the European Foundation for the Improvement of Living and Working Conditions published a report “Decarbonisation of residential heating and cooling: The heat pump challenge”. The report highlights the EU’s efforts to promote heat pumps as a key technology for achieving carbon neutrality by 2050. Heat pumps are efficient and renewable but face challenges such as high installation costs, a significant electricity-to-gas price gap, and a shortage of skilled installers. EU policies like Fit-for-55, Renovation Wave, and RePowerEU are central to driving adoption, supported by subsidies
that vary widely across member states. To accelerate uptake, the report recommends expanding vocational training, standardizing installer certifications, providing consistent financial incentives, and implementing energy pricing reforms. Overall, targeted support, awareness campaigns, and a skilled labor force are essential to meeting ambitious heat pump installation targets and reducing greenhouse gas emissions from buildings.
| Commission Releases the State of the Energy Union Report 2024
| On 11 September, the European Commission published the State of the Energy Union Report 2024 which outlines how the EU has navigated unprecedented energy policy challenges during the current Commission term, particularly in establishing a regulatory framework to drive the clean energy transition while simultaneously setting the stage for renewed economic growth and competitiveness. The first part of the report addresses how the European Green Deal provided the basis for the EU's crisis response strategy and the REPowerEU Plan addressed the challenges
of Russian energy supply in the context of the war in Ukraine. This part also outlines the steps taken to enhance the competitiveness of European industry. The second part of the Report analyses the state of play in the implementation of the Energy Union across its five dimensions: (1) security, solidarity and trust; (2) a fully integrated internal energy market; (3) energy efficiency; (4) climate action and decarbonizing the economy; and (5) research, innovation and competitiveness.
The Report finds the EU has successfully addressed energy security risks, stabilized energy markets, and advanced towards climate neutrality. By mid-2024, half of the EU's electricity came from renewables, and Russian gas imports have dropped from 45% in 2021 to 18% today. Gas demand has decreased by 138bn cubic meters from August 2022 to May 2024, and the EU reached 90% of its winter gas storage target ahead of schedule. Greenhouse gas emissions fell by 32.5% between 1990 and 2022, while the economy
grew by 67%. Internationally, the EU led efforts to triple renewable capacity and double energy efficiency, endorsed at COP28. However, more progress is needed in energy efficiency and electrification to meet 2030 targets. Additionally, tackling high energy prices remains a major factor for future and current competitiveness and infrastructure investments.
| European Commission Approves €1 billion in Portuguese State Aid to Support Energy Transition
| The European Commission approved a €1 billion Portuguese scheme to support investments in producing equipment essential for the transition to a net-zero economy, in line with the Green Deal Industrial Plan. This aid, part of the State Aid Temporary Crisis and Transition Framework (TCTF), will provide direct grants to companies manufacturing batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture technology. The scheme aims to accelerate the green transition by promoting the production of strategic
equipment, reducing reliance on fossil fuels, and supporting the EU’s climate neutrality goals, while ensuring minimal market competition distortion.
| Europe Avoids 5.5 Billion Cubic Meters of Gas With Heat Pumps
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According to new data from the European Heat Pump Association (EHPA), heat pumps are making significant strides in reducing gas consumption and carbon dioxide emissions across Europe. With 24 million units installed, heat pumps are mitigating 5.5 billion cubic metres of gas consumption annually, equivalent to 1.6% of the EU's total gas consumption, and 45 megatonnes of CO2 emissions, representing 4.9% of emissions from buildings.
However, despite these achievements, heat pump sales in the first half of 2024 fell by 47% compared to the same period in 2023, with only 765,000 units sold across 13 countries. The decline is attributed to changing national policies, reduced support schemes, and the slow reduction of electricity prices compared to gas. EHPA’s Director General, Paul Kenny, emphasized the urgent need to reverse the slowing market, calling for the publication of the EU Heat Pump Action Plan. Kenny also advocated for
flexible electricity tariffs to further incentivize heat pump adoption, aligning with Europe’s climate goals and competitive edge in clean tech manufacturing.
If the EU reaches its 2030 target of 60 million heat pumps, they could avoid 112 megatonnes of CO2 emission and 13.7 billion cubic metres of gas consumption annually.
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United Kingdom National Updates
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High Costs Could Delay UK Heat Pump Rollout
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A new study by the University of Edinburgh and Imperial College London reveals that the high cost of installing heat pumps could delay their widespread adoption in the UK, potentially jeopardizing government decarbonization targets. The research shows installation costs have remained stagnant over the past decade and are only projected to decrease by 20-25% by 2030, falling short of what is needed to meet policy goals. Despite their energy efficiency and potential for decarbonization, heat pumps remain a minor player in UK households due to high upfront costs. The study calls
for realistic cost expectations and targeted support measures to accelerate their adoption.
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Events
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Euractiv Hybrid Conference on the Road to Net-Zero of District Heating Systems
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On
13 November 2024,
Euractiv will be hosting a Hybrid Conference to discuss the road to net-zero of district heating systems.
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 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.
| Heat Pump Day 2024
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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.
| 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 a 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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