EU Regulatory Updates

 

 

On 9 October, the European Commission issued new guidance to help Member States effectively implement the Social Climate Fund (SCF) and finalize their Social Climate Plans (SCPs). The SCF, mobilizing over €86 billion starting in 2026, is designed to ensure that the transition to a greener economy is socially fair, supporting vulnerable households and small businesses in switching to cleaner energy and transport. The Fund derives its resources from the revenues of the new Emissions Trading System for buildings, road transport, and other sectors (ETS2), aiming to alleviate the financial burden of this clean transition, particularly in housing and transport.

 

The guidance sets out key principles for implementation, including predictability of payments tied to achieved milestones, performance-based funding, streamlined use of existing administrative structures, inclusive governance involving stakeholders, and strong safeguards against fraud. Importantly for the heating and cooling sectors, the SCF explicitly supports investments in energy- efficient building renovations, including insulation upgrades, clean heating and cooling technologies such as heat pumps, and the integration of renewables like solar panels. These measures directly target reducing energy poverty by helping vulnerable households improve thermal comfort with lower emissions and energy costs.

 

Member States were required to submit their SCPs by June 2025, detailing planned national measures focused on vulnerable groups impacted by ETS2. Once approved, funding will be disbursed upon achieving agreed milestones, with the first payment requests possible from July 31, 2026.

 

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On 18 September, Euroheat Power published a policy paper titled "Scaling up district heating and cooling for a secure, decarbonised and competitive Europe," outlining strategic recommendations to accelerate Europe's transition to sustainable, affordable heating and cooling solutions. The paper highlights that heating and cooling represent half of Europe’s energy use and around 27% of CO2 emissions, emphasizing the sector's critical role in achieving the EU's 2040 and 2050 climate ambitions, enhancing energy security, and mitigating energy costs for consumers.

 

The report identifies district heating and cooling (DHC) networks as an important asset, currently serving over 77 million Europeans and sourcing around 43% of their energy from renewable and waste heat sources. It argues that expanding the DHC share to 20% of EU heat demand by 2030 could save 24 billion cubic meters of gas annually and that aiming for 55% coverage by 2050 is the most efficient pathway to sector-wide decarbonization. The paper outlines multiple barriers slowing deployment, including political awareness, fragmented finance, lengthy permitting, and complex coordination among stakeholders.

 

To overcome these challenges, Euroheat Power recommends five strategic pillars: increasing system flexibility by better integrating heat and electricity grids; boosting energy efficiency through waste heat recovery; ensuring fair energy taxation that does not penalize clean heating consumers; accelerating digitalization of heating and cooling grids; and facilitating end-user access to clean solutions via support to local authorities and reduced upfront costs for building retrofits. The paper emphasizes the need for innovative financing schemes such as ESCOs and public-private partnerships and highlights the importance of de-risking investments in DHC infrastructure through dedicated EU and national funds. Finally, the report calls for a robust EU cooling strategy integrated with heating and cooling action plans, urging strong regulatory and funding support for these energy transition priorities.

 

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EU National Updates

 

 

On September 30, the French Government reopened the MaPrimeRénov’ counter for major renovations, with priority given to the most modest households and a focus on energy-intensive homes classified E, F or G, in order to accelerate the fight against thermal sieves and address energy poverty. MaPrimeRénov’, introduced on January 1, 2020, and managed by the National Housing Agency (Anah), is a financial aid scheme for energy renovation whose amount depends on household income and the nature of the work undertaken. Since January 1, 2024, it has operated through two main pathways: a “targeted upgrade” route, intended for upgrades limited to installing decarbonized heating or hot water systems, improving insulation or ventilation and requiring the property to be at least 15 years old and occupied as a primary residence; and a “major renovation” route, aimed at ambitious projects delivering a gain of at least two energy classes through multiple insulation measures, accessible to a wider range of incomes and phased for landlords.

 

Recent regulatory changes, notably Decree No. 2025-956 of September 8, 2025, and its accompanying orders, have modified eligibility rules, updated technical criteria for eligible works, and ensured alignment with other schemes such as zero-rate eco-loans. Additional measures in 2025 have strengthened the skill and certification requirements for energy performance diagnosticians and harmonized technical standards across energy renovation aid frameworks. Applicants must continue to use RGE-certified professionals, comply with the updated norms, and can make use of official simulators, to estimate aid amounts and verify eligibility before submitting their projects.

 

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On September 30, the Portuguese government opened applications for the E-Lar program, aimed at supporting families in improving the thermal comfort of their homes by replacing gas appliances with more energy-efficient electric alternatives. The program provides financial support through digital vouchers for the purchase of electric hobs, ovens, and water heaters, but notably excludes heat pumps, a decision that has already drawn criticism. On its first day, the E-Lar program received over 6,000 applications despite initial difficulties with the application website due to high demand. The support aims to accelerate the electrification of household energy consumption and combat energy poverty by encouraging the replacement of older, less efficient gas appliances with efficient electric versions, though the exclusion of heat pumps has raised concerns among stakeholders. Applicants who qualify receive a voucher that can be used to purchase eligible appliances rated class A or higher, with maximum support amounts of up to €1,683 for vulnerable families and €1,100 for other households. The Portuguese Ministry of Environment has announced plans to propose expanding the program as part of ongoing efforts to address energy efficiency and poverty.

 

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Events

 

 

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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On 5 – 6 November 2025, Euroheat & Power will organize the Euroheat & Power Summit 2025 in Brussels, Belgium.

 

More information is available here.

 

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On 17-18 November 2025, the Federation of European Heating, Ventilation, and Air Conditioning Associations (REHVA) will organize its annual summit in Brussels, Belgium.

 

More information is available here.

 

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On 25 November, Energy Cities will organize an online workshop divided into two sessions. An initial general session in English, providing an overview of the ESCALATE project. This will include key topics such as its Heating & Cooling (H&C) planning method, support structure, and training platform. A second, more in-depth session was conducted in various regional languages (French, Greek, Slovenian, Italian, Polish, and Croatian). This part will focus on the current challenges faced by Local and Regional Authorities (LRAs) in implementing Article 25 of the Energy Efficiency Directive (EED).

 

More information is available here.

 

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Glossary