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September 18, 2025
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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 Launches Call for Evidence and Public Consultation on the EU Heating and Cooling Strategy
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On 28 August, the European Commission launched a call for evidence and a public consultation on the EU Heating and Cooling Strategy. First introduced in 2016, it is aimed at accelerating the decarbonization of heating and cooling in industry, households, and businesses. The strategy’s objectives are to increase the deployment of renewable energy technologies and energy efficiency solutions, address inefficiencies on both the supply and demand sides as well as at the planning level and improve energy system integration. It will include specific
actions on geothermal energy and explore additional options for direct heat capture, such as solar thermal energy. The new strategy, announced under the Clean Industrial Deal and the Action Plan for Affordable Energy, will reinforce these efforts by supporting current legislation and suggesting ways to improve planning of energy infrastructure, district heating, and waste heat recovery. It is designed to address both the supply side, accelerating the deployment of clean heating and cooling technologies,
and the demand side by encouraging their use in key sectors.
To shape this strategy, the Commission has issued a call for evidence and an open public consultation to gather input. The call for evidence seeks focused technical input from experts and stakeholders on sector challenges and opportunities to inform the strategy’s early framework. The broader public consultation invites views from all interested parties, including citizens, on proposed policy options and directions.
The deadline for the call for evidence is 9 October 2025, while the public consultation will remain open until 20 November 2025. The finalized EU Heating and Cooling Strategy is expected to be published in the first quarter of 2026.
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President of the European Commission Ursula Von der Leyen Delivers Annual State of the Union Speech
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On 10 September, the President of the European Commission, Ursula von der Leyen, delivered her Annual State of the European Union (SOTEU) speech. The SOTEU is an annual address that sets out the EU’s strategic vision, policy priorities, and legislative agenda for the coming year, reflecting on challenges and opportunities facing the Union.
In this address, she presented the EU’s legislative roadmap for the year ahead, emphasizing key challenges including energy security, clean technology, industrial competitiveness, and the circular economy. She highlighted three key issues related to the heat pump sector: promoting energy independence through clean technologies, maintaining a steady commitment to the Green Deal, and creating a fairer energy system with lower costs for citizens and industry. She emphasized that heat pumps contribute
to all these priorities by cutting emissions, lowering bills, and strengthening energy independence for buildings and industry, while also creating skilled jobs in Europe.
Furthermore, she pointed out that lowering energy costs depends on clean, home-grown energy and making electricity competitive with gas, enabling the transition to 100% green electricity from wind and solar power, including in heating. Looking forward, the EU Electrification Action Plan and the Clean Heating and Cooling Strategy will be crucial in shaping the pace of the transition. Heat pumps are portrayed as Europe’s trusted and reliable path forward in these turbulent times.
The next steps will require swift and coordinated action by the EU and Member States to ensure full and robust implementation of existing rules and targets, as well as supportive new measures. This includes adopting the upcoming EU Electrification Action Plan and Clean Heating and Cooling Strategy, which will frame heat pump deployment and integration in the energy system. Member States need to improve national support schemes for affordability, streamline regulatory frameworks, and implement dynamic
electricity pricing to stabilize grids and reduce costs.
| Energy Cities Updates its EU Tracker
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On 10 September, Energy Cities published an update on its
EU Tracker
monitoring Member States’ progress on the revised Energy Efficiency Directive, which requires an 11.7% reduction in final energy consumption by 2030. The Tracker now includes a “Cities Case Studies” feature highlighting local heating and cooling strategies. Examples include Salaspils (Latvia), which cut heating emissions by 88% since 2018 by integrating solar thermal and waste heat recovery; Guimarães (Portugal), targeting climate neutrality by 2030 through heat pumps, energy communities, and building
renovation; and Budapest (Hungary), which is modernising its fossil-fuel-based district heating by introducing geothermal and waste heat. These city-level initiatives show how local action underpins the EU’s push to phase out fossil fuels in heating and cooling.
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France Updates on Electricity Conversion Coefficient and Heat Pump Incentives Ahead of 2026 Regulatory Changes
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On 12 September, an update confirmed that the electricity conversion coefficient used to calculate energy performance in buildings (DPE) in France will change from 2.3 to 1.9 starting January 1, 2026. However, for the RE2020 regulation, which measures building energy regulations, the coefficient will remain at 2.3. This means professionals need to juggle two different coefficients depending on whether they are doing a DPE or RE2020 study, adding complexity to their work and requiring clear explanations to clients about the differences
in results.
In parallel, France is revising its support for heat pumps through draft regulations open for consultation until September 18, 2025. For individual heat pumps, new rules starting October 1, 2025, say that these heating systems must cover all heating needs and cannot be combined with other systems like solar panels for energy savings certificates. There will be a temporary boost in financial support, up to six times the normal amount, for installing these systems, especially targeting low-income households, and a shorter-term boost
to encourage market growth for others through early 2026. These incentives aim to accelerate the transition away from fossil fuels.
For collective and commercial buildings, new heat pump standards and bonuses come into effect January 1, 2026. Existing categories are replaced with updated forms to reflect improved technology standards and to include new support for geothermal heat pump systems. Bonuses vary, with the highest incentives going to geothermal systems, all designed to encourage replacing fossil fuel heating systems with low-carbon alternatives.
Additionally, support for some traditional insulation measures may be phased out after 2025, shifting focus to integrated renovation solutions. Key deadlines are September 18, 2025, for consultation on heat pump revisions, and January 1, 2026, for the new electricity coefficient and updated heat pump standards and bonuses.
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Heat Pump Forum & Award 2025
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On
23 – 24 September 2025,
the European Heat Pump Association will host its flagship heat pump forum.
More information is available here.
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Mayor’s Club dinner – Financing Local Heating and Cooling Infrastructure
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On
15 October 2025,
Energy Cities will host an informal dinner gathering local and EU elected representatives to exchange views and knowledge on the challenges of decarbonizing local heating and cooling systems. The event will take place in Brussels, Belgium.
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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