EU Regulatory Updates

 

 

On August 7, the Covenant of Mayors for Climate and Energy, a European initiative where local and regional authorities voluntarily commit to implementing EU climate and energy objectives, published a comprehensive report highlighting the urgent need for sustainable cooling solutions as European cities face increasing heatwaves alongside their decarbonization efforts. The report emphasizes the rapid rise in cooling energy demand, the drawbacks of conventional air conditioning, and the benefits of district cooling systems powered by renewable sources. Between 2010 and 2019, cooling energy use in residential buildings within the eurozone tripled, with projections that cooling could account for up to 9% of total energy use by 2050. Conventional air conditioning is energy-intensive, worsens urban heat islands, and increases emissions, making it unsustainable.

 

The EU’s Energy Efficiency Directive now requires cities with over 45,000 inhabitants to develop local heating and cooling plans, encouraging integration of district cooling as cities expand or renovate district heating networks. Examples across Europe illustrate its potential: Marseille uses seawater cooling to cut CO₂ emissions by 80%, Paris’s Fraîcheur de Paris system reduces electricity use by 35%, and Tallinn and Tartu deploy river-powered, carbon-neutral cooling networks. Northern and central European cities like Helsinki, Vienna, and Munich integrate district heating and cooling for year-round energy efficiency, with savings up to 70%. Barcelona’s large-scale system uses renewable and recovered energy to reduce emissions and mitigate urban heat.

 

The report stresses that district cooling sits at the intersection of decarbonization and heat resilience goals, offering cities an effective way to protect public health, lower emissions, and maintain livability in a hotter climate.

 

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On July 24, the ConnectHeat consortium, the first European initiative to develop heating and cooling communities in Europe, published a position paper addressing major policy gaps in the development of renewable heating and cooling (H&C) communities across Europe. The report emphasizes that most Renewable Energy Communities (RECs) focus exclusively on electricity despite H&C representing over half of EU energy demand and emissions. The paper notes that existing EU directives, like the Renewable Energy Directive (REDIII) and the revised Energy Efficiency Directive (EED), set ambitious decarbonization targets, yet national implementation has largely excluded H&C from REC support, limiting progress on climate goals and energy poverty. To resolve these issues, ConnectHeat recommends explicit regulatory inclusion of heating and cooling in REC legislation, the creation of virtual heat sharing models, and conditional guarantees of open access to thermal networks. Financially, it advocates risk reduction mechanisms, public investment, special incentives for RECs integrating H&C, and new business models such as crowdfunding and co-investment tools. In terms of capacity building, the paper calls for expanded technical assistance, empowerment of local governments, development of local H&C plans, and widespread dissemination of best practices. ConnectHeat concludes that realizing the full potential of H&C communities will require comprehensive legislative reform, improved strategic coordination, and strengthened support measures at every governance level.

 

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COn August 4, the European Heat Pump Association (EHPA) published a report highlighting that despite a 22% decline in heat pump sales across 19 European countries in 2024, the UK and Ireland bucked the trend with strong growth. The UK recorded a 63% increase in heat pump sales, reaching nearly 100,000 units sold, driven largely by the government’s Boiler Upgrade Scheme, which offers households up to £7,500 (€8,600) to replace fossil fuel heating with heat pumps. This scheme mandates efficient units and excludes hybrid systems, ensuring quality and focus. Alongside this, the UK saw a 15% rise in the number of individuals completing heat pump training, addressing a critical installer shortage that supports sustained growth. Policy consistency, clear incentives, and rising public awareness have been central to this progress. However, the UK’s per capita adoption remains low compared to leading European nations, with ambitious deployment targets ahead requiring ongoing investment and government support. Ireland similarly saw a 19% increase in sales in 2024, driven by stable long-term policies and grants linked to carbon tax, enabling strong growth in both new builds and renovations. These cases demonstrate that aligned policy, communication, and delivery can successfully drive heat pump adoption even in challenging environments, offering valuable lessons for the wider EU market.

 

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Events

 

 

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, European Heat Pump Association will host its flagship heat pump forum.

 

More information is available here.

 

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Glossary