EU Regulatory Updates

 

 

On 22 April, the European Commission confirmed that the earliest review of the F-gas Regulation (EU) 2024/573 will take place in 2030, rejecting industry calls for an earlier reassessment despite concerns from manufacturers and the heat pump sector. The regulation, which came into force in March 2024, establishes a quota-based phaseout of hydrofluorocarbons (HFCs) used in refrigeration, air conditioning, and heat pump systems, with a complete consumption phaseout scheduled for 2050 and a steep reduction trajectory leading up to that date.

 

Commissioner Hoekstra, responding to a written question from MEP Dan-Ștefan Motreanu, emphasized that an early review would undermine planning certainty for companies, stating that the current timeline provides a stable regulatory environment to support innovation and allow technological alternatives to mature. This position means that manufacturers and suppliers across the EU must continue to plan under the existing framework, facing both operational challenges and opportunities for early investment in alternative refrigerants and green cooling technologies.

 

Key phaseout dates include a ban on small monoblock heat pumps and air conditioning units containing HFCs by 2032, and split systems by 2035, with the Commission committing to review the impacts and technological readiness of alternatives no later than January 2030. The regulation is expected to drive significant emission reductions while supporting the EU’s broader climate and energy targets, but it also introduces investment uncertainty for manufacturers dependent on HFCs, especially given the lack of an earlier policy review window.

 

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According to the European Heat Pump Association (EHPA), if just 7% of European homes-about 14 million households-replaced their fossil fuel boilers with heat pumps, it would save 13 billion cubic metres of gas, equivalent to the EU’s entire annual imports from Russia for residential heating and hot water. As of the end of 2024, Europe has installed around 26 million domestic heat pumps, representing a 55% increase if the additional 14 million units were deployed. These existing heat pumps already helped avoid 24 billion cubic metres of gas use in 2024. The EU’s 2030 target is to reach 60 million heat pumps, which would further strengthen energy security and reduce dependence on imported fossil fuels. Heat pumps are up to five times more energy efficient than boilers and, as the electricity mix decarbonizes, their climate benefits increase. The European Commission estimates that greater heat pump adoption and improved home efficiency could save the EU €60 billion by 2030 through avoided fossil fuel imports.

 

Despite these benefits, recent EHPA data shows a significant slowdown in heat pump sales, with a 23% drop in 2024 compared to 2023 across major European markets, due to policy uncertainty, fluctuating energy prices, and reduced government support. The EHPA and sector stakeholders are calling for a clear, stable EU-level strategy to accelerate heat pump deployment, including electricity pricing reform and robust implementation of Green Deal policies. The upcoming Emissions Trading System 2 (ETS 2) and the Social Climate Fund are expected to provide additional financial support for clean heating technologies, aiming to reverse the sales decline and drive further investment in European manufacturing and jobs.

 

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On 8 May, the European Heating Industry (EHI), which represents manufacturers and national associations in the heating sector across Europe, released a policy paper, emphasizing the often-overlooked but critical role of heat emitters-such as radiators and surface heating/cooling systems-in achieving both comfort and efficiency in heating, thereby supporting the decarbonization of buildings. The report highlights that selecting and optimizing the appropriate type of heat emitter is not a one-size-fits-all decision; factors such as building heat loss, available space, occupant behavior, and personal preferences must be considered, and that both radiators and surface systems can achieve high efficiency at low flow temperatures (35°C or below) when properly sized and balanced. EHI recommends that European policies take a holistic approach to heating system upgrades, explicitly factoring in the role of heat emitters, and calls for stable, long-term financial incentives and guidance to support households in transitioning to efficient, low-temperature systems, as well as the development of training programs for installers to ensure optimal performance. The paper underscores that maximizing the efficiency of heat emitters is essential for reducing energy consumption in buildings, which is crucial for meeting climate neutrality targets by 2050, and urges policymakers to integrate these considerations into national and EU-level strategies for building decarbonization.

 

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On 24 April, the European Commission launched calls for proposals as part of the 2025 LIFE Program, offering up to 95% EU co-funding for innovative district heating and cooling (DHC) projects that integrate renewable energy, valorize waste heat, and digitalize system operations to reduce CO₂ emissions and improve efficiency. With a total fund of €600 million for clean energy transition initiatives, this call targets public authorities, utilities, technology providers, SMEs, research organizations, and sector consortia to develop scalable, replicable solutions with strong environmental and business impacts. Eligible projects must demonstrate measurable climate benefits, robust business models, and clear knowledge transfer strategies. Proposals should support either the modernization of existing DHC systems to meet the “efficient district heating and cooling” criteria under the Energy Efficiency Directive or the development of new networks fully based on renewables or waste heat, with a focus on investment planning, stakeholder engagement, and regulatory compliance. The call is open from 24 April 2025, with applications due by 23 September 2025.

 

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On 24 April, the European Parliament hosted a well-attended breakfast debate, organized by the European Heat Pump Association (EHPA) and MEP Thomas Pellerin-Carlin, underscoring the strategic importance of accelerating heat pump deployment for Europe’s energy security and climate objectives. Experts from the International Energy Agency and the European Commission highlighted that heat pumps have contributed to nearly 10% of the EU’s reduction in natural gas imports since 2021, and that replacing fossil fuel boilers in just 7% of European homes with heat pumps could eliminate the EU’s need for Russian gas imports for residential heating and hot water-a saving of 13 billion cubic metres of gas and €5.4 billion in avoided import costs.

 

Despite a decade of growth, the European heat pump market saw a 21% drop in sales last year, attributed to high electricity prices and policy uncertainty, which are discouraging consumers from switching to electric heating. Participants called for a coordinated EU strategy to accelerate heat pump deployment, electricity pricing reforms to enhance competitiveness, and long-term policy stability to support manufacturing and job creation in the sector. The debate further emphasized that scaling up heat pump adoption is essential not only for climate neutrality and industrial competitiveness but also for protecting citizens and businesses from volatile energy markets and reinforcing Europe’s energy independence

 

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EU National Updates

 

 

A recent webinar, “Renewable Heating and Cooling in Greece: A Roundtable Exchange,” organized by the European Technology and Innovation Platform on Renewable Heating and Cooling (RHC-ETIP) alongside Solar Heat Europe, CRES, and the REDI4HEAT project, highlighted Greece’s ambitious roadmap to achieve 100% renewable heating and cooling (RHC). Experts discussed the current policy landscape, innovative technologies, and sectoral strategies, with a focus on solar thermal, heat pumps, community-based systems, and biomass. Greece’s National Energy and Climate Plan (NECP) targets a 46–47% share of renewables in heating and cooling by 2030, primarily through the expansion of heat pumps and solar thermal technologies, while the government also aims to renovate 68,000 buildings annually and ban new oil boilers from 2025. The Greek solar thermal industry is particularly strong, exporting over 60% of its production, and energy communities are being promoted to ensure a just transition and local development. However, challenges remain, including the need for clearer policies on waste heat, renewable electricity accounting, and the sustainable use of biomass, as well as the integration of district heating and cooling networks.

 

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In April 2025, the French government formally acknowledged significant delays in meeting national energy renovation and heating decarbonization targets, citing policy instability and economic headwinds as key factors. Measures to address these gaps include extending relaxed rules, raising value added tax (VAT) on fossil fuel boilers, advancing energy savings certificate requirements, and developing new financial and advisory tools for renovations. The government is considering revising its ecological planning trajectory for housing, with a possible downward adjustment of renovation targets to reflect sectoral and budgetary constraints. A reinforced action plan and more ambitious climate strategies are promised for 2025, as France seeks to regain momentum in its energy transition and align with long-term decarbonization goals.

 

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United Kingdom National Updates

 

 

In April 2025, the UK Government announced new product standards requiring all new heat pumps and other low-carbon electric heating appliances to be sold with smart functionality, aligning them with existing regulations for electric vehicle (EV) chargers, as part of its Clean Power Action Plan to reduce energy bills and accelerate grid decarbonization. These smart-ready devices, including hydronic heat pumps, storage heaters, heat batteries, and home energy storage systems up to 45kW, must be capable of responding to price signals-enabling households and businesses to shift energy use to cheaper, off-peak periods and benefit from time-of-use tariffs, similar to the savings EV owners already experience by charging overnight. The standards will also ensure interoperability across different energy suppliers, giving consumers greater choice and flexibility while encouraging competition in the market. The government estimates that these measures could save households around £100 per year compared to gas boiler costs, and by reducing peak demand, could avoid £40–50 billion in new electricity infrastructure investment by 2050. In addition, new cybersecurity requirements will protect consumers and their data from cyber threats. These changes are closely linked to the upcoming Market-wide Half-Hourly Settlement (MHHS) Program, which will require suppliers to use accurate, half-hourly consumption data from 2027, further enabling smart tariffs and flexible energy use, with Ofgem projecting net consumer benefits of £1.6–£4.5 billion by 2045. The government is also consulting on expanding the Warm Home Discount scheme, offering additional support to vulnerable households.

 

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In April 2025, the Scottish government launched Phase 2 of the Public Sector Heat Decarbonisation Fund to accelerate the decarbonisation of heating in public buildings. Administered by Salix Finance, the fund provides grants of up to £2.5 million per application to support local authorities, universities, colleges, and external organizations in replacing fossil fuel-based heating systems with low-carbon alternatives such as heat pumps, low-carbon heat networks, and energy efficiency measures.

 

Key features of the scheme include a requirement for a whole building retrofit approach, a minimum 20% match funding contribution from applicants, and a completion deadline for all works by 31 March 2026. Only one application per organisation is permitted, but each application may cover multiple buildings or measures. The fund prioritises projects that demonstrate significant carbon savings and alignment with Scotland’s net-zero by 2045 target.

 

This initiative is a central component of Scotland’s public sector decarbonisation strategy, targeting the reduction of emissions from approximately 23,000 public sector buildings, which currently account for around 2.5% of national greenhouse gas emissions. The fund also provides technical guidance and support to facilitate project delivery and maximise impact.

 

The application window for Phase 2 is open from 29 April to 27 May 2025.

 

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Events

 

 

On 22 May 2025, EHPA will organize an event entitled “The Road to Sustainable Industrial Heat: A Roundtable on the Future of Industrial Heat Pumps”.

 

More information is available here.

 

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On 2 – 3 June 2025, REHVA will hold its Annual Meeting in Milan, Italy. The Annual Meeting will feature presentations, workshops, and networking opportunities focused on the latest developments in the HVAC industry.

 

More information is available here.

 

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On 4 – 6 June 2025, REHVA will hold its 15th HVAC World Congress in Milan, Italy. The theme of this Italian edition is "Decarbonized, healthy, and energy-conscious buildings in future climates".

 

More information is available here.

 

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On 7 – 10 September 2025, VITO and EnergyVille will organize the 19th International Symposium on District Heating and Cooling in Genk, Belgium.

 

More information is available here.

 

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On 23 – 24 September 2025, EHPA will host its flagship heat pump forum.

 

More information is available here.

 

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Glossary