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December 18, 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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New European Commission 2024 - 2029
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On December 1, 2024, the new European Commission began its 2024–2029 mandate with a strategic focus on decarbonization, housing, energy, and the building sector. The Commission’s agenda emphasizes fostering a free, democratic, secure, and competitive Europe through green and digital transitions, innovation, and inclusivity. Key appointments include Teresa Ribera Rodríguez as Executive Vice-President for Clean, Just, and Competitive Transition; Wopke Hoekstra as Commissioner for Climate, Net Zero,
and Clean Growth; Dan Jørgensen as Commissioner for Energy and Housing; and Jessika Roswall as Commissioner for Environment, Water Resilience, and Circular Economy. These roles will drive initiatives like the Clean Industrial Deal, the European Affordable Housing Plan, Electrification Action Plan, and the New European Bauhaus to advance sustainability, energy efficiency, and industrial transformation while addressing housing affordability and competitiveness challenges.
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Subsidies for Industrial Heat Pumps in Europe
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On 15 November, the European Heat Pump Association (EHPA) released a report giving an overview of the subsidies available for industrial heat pumps in Europe, including countries such as Portugal, France, and Greece. For France, the report identifies the subsidy mechanisms, such as Fonds Chaleur, Energy Savings Certificates (Certificates d'Économies d'Énergie), Energy Environment Loan (Prêt Energie Environnement), and Green Loan (Prêt Vert). For Greece, it identifies New Development Law 4887/2022 – Green Transition as the key funding mechanism offered to businesses
for expenses related to green transition, including costs for innovation, R&D projects, and energy efficiency investments. Finally, for Portugal, the report details the two main instruments – “Decarbonising Industry” (Descarbonização da Indústria) and “Support for the Development of a Green Industry” (Apoio ao Desenvolvimento de uma Indústria Ecológica).
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Greece to Offer Grants for Heat Pumps in 2025
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The Greek government has announced their "Exoikonomo 2025" program, set to launch in 2025, to enhance energy efficiency in homes and businesses. The program will provide grants for heat pump installations, covering up to 100% of costs (maximum €35,000), with subsidies ranging from 50% to 60% for most applicants and full coverage for vulnerable groups, including families with members with disabilities, flood and earthquake victims, and large families. Interest-free loans will also be made available. In addition to heat pumps, the
program supports energy-saving measures like replacing windows and doors and installing insulation. Priority will be given to applicants from cooler regions of Greece. Official details from the Ministry of Environment are expected soon.
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The French Heat Pump Sector Experiences a Decline in Installations
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In recent months heat pump installations in France have experienced a sharp decline, creating difficulties for professionals in the sector despite the government’s ambitious targets. President Emmanuel Macron's announcement in September 2023 set a goal of producing 1 million heat pumps annually by 2027, supported by financial incentives like MaPrimeRénov’ and Coup de pouce Chauffage. However, installers report a dramatic drop in demand since mid-2024, with some businesses experiencing a 40-50% decline in requests. Concerns over heating efficiency, high electricity
costs, and the complexity of accessing government aid are reported to have eroded customer confidence. Additionally, the downturn in the real estate market has further impacted renovations and installations. While some businesses may be able to diversify their offerings to stay afloat, small producers and installers that have focused exclusively on heat pumps may face significant challenges. To address this situation, there are calls being made by businesses and industry groups for streamlined aid
processes and renewed customer engagement to revive the sector.
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The UK Heat Pump Market Shows Significant Growth
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The UK government has opened a consultation to reform Energy Performance Certificates (EPCs), Display Energy Certificates (DECs), and air conditioning inspection reports (ACIRs) to enhance the Energy Performance of Buildings regime. The proposed changes aim to provide accurate energy performance information to support informed decisions by homeowners, tenants, and stakeholders while enabling progress on government targets for decarbonization, fuel poverty reduction, and the Warm Homes Plan. Key reforms include updating EPC
metrics, refining requirements for obtaining EPCs and DECs, strengthening quality assurance for certificates and ACIRs, and improving access to building performance data. Additionally, addressing the needs of diverse users, such as energy efficiency suppliers and lenders, to drive carbon reduction and housing improvements is a crucial component. This consultation closes at 11:59pm on 26 February 2025.
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The UK Warm Homes Plan is Expanded
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On 21 November, the UK government expanded its Warm Homes Plan to benefit up to 300,000 households in 2024 through enhanced grants, regulatory reforms, and investment. Key measures include nearly doubling the Boiler Upgrade Scheme budget to £295M for 2024-25, offering £7,500 heat pump grants, and removing planning barriers for air source heat pumps. Low-income and rental households will receive funded energy efficiency upgrades, while consultations on higher energy efficiency standards for rented homes by 2030 aim to lift over 1 million
households out of fuel poverty. These initiatives are part of a broader strategy to cut energy bills, tackle fuel poverty, and support a cleaner, homegrown energy transition.
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REHVA Annual Meeting 2025
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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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CLIMA 2025
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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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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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