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January 23, 2026
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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 Publishes the Draft National Building Renovation Plans for Member States
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On January 15, the European Commission published draft National Building Renovation Plans for Member States, marking a key step in the implementation of the revised Energy Performance of Buildings Directive (EPBD).
The draft National Building Renovation Plans (NBRPs) replace the national long-term renovation strategies that Member States have been required to submit since 2014 and are now mandated under Article 3 of the revised EPBD. They are intended to guide the renovation of national residential and non-residential building stocks, both public and private, towards a highly energy-efficient and decarbonised building stock by 2050, in line with the EPBD’s objective of achieving zero-emission buildings.
The Commission’s publication clarifies the structure and expected content of the plans, which will form part of Member States’ integrated National Energy and Climate Plans (NECPs) and be monitored through the NECP reporting framework. Member States were required to submit draft NBRPs by December 31, 2025, following a national public consultation. The Commission will assess the drafts and may issue recommendations within six months, after which Member States must submit final plans by December 31,
2026.
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Commissioner Jørgensen Embarks on his European Affordable Housing Tour
| COn December 18, 2025, the European Commission announced Commissioner for Energy, Dan Jørgensen’s visit to Austria, marking the first stop of his European Affordable Housing Tour, aimed at supporting the on-the-ground implementation of the EU’s first European Affordable Housing Plan.
As a reminder, the European Affordable Housing Plan is designed to improve access to affordable, high-quality housing across the EU by combining social policy objectives with energy and climate goals. The Plan places strong emphasis on energy-efficient building design, renovation of existing housing stock, and the deployment of low-carbon heating and cooling solutions, including heat pumps, district heating and cooling, and improved ventilation systems. The Plan also promotes the use of modern HVAC technologies to reduce energy bills, improve indoor
comfort and air quality, and tackle energy poverty, while supporting EU decarbonization targets and the development of sustainable construction and HVAC value chains.
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Solar Heat Europe Highlights Growing Momentum for Solar Thermal District Heating in the EU
| On January 12, Solar Heat Europe, representing the European solar thermal sector, published an update highlighting growing momentum for solar thermal district heating (SDH) in Europe, drawing on recent International Energy Agency’s analysis and 2025 deployment trends. The IEA’s
Renewables 2025 report
(October 2025) identifies SDH as a key technology to watch, noting its strong land-use efficiency for heat generation and significant untapped potential, as less than 1% of European district heating networks currently integrate solar thermal. In 2025, six new SDH systems were commissioned in the EU (three in Germany, and additional projects in the Netherlands, Italy, and Austria), including the Dorkwerd Solar Thermal Park in Groningen, Netherlands, inaugurated in May 2025, which comprises approximately
24,000 collectors and is expected to supply heat to around 10,000 households. The IEA also highlights improving cost competitiveness (with costs falling as capacity scales) and expects EU renewable heat targets and support schemes to remain key drivers of further deployment.
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Rescoop.Eu Highlights the Role of Community-Led Heating and Cooling in Europe
| On December 17, REScoop EU, Europe’s federation representing renewable energy cooperatives and citizen-led energy communities, published an article highlighting community-led heating and cooling as a future-proof solution to address high energy costs, energy poverty, and the decarbonization of heat. The publication notes that more than 650 citizen-owned district heating systems are already operating across the EU, supplying around 1.9 million homes, with Denmark and the Netherlands cited as leading examples. It identifies three key enabling conditions for scaling up these models: supportive legislation (including the Netherlands’
recently adopted Heating Law, recognizing citizens as market actors), access to expert networks to support project development, and sufficient financing combining public support, bank lending, and citizen capital. Looking ahead, REScoop.eu points to the upcoming EU Citizen Energy Package and the planned update of the EU Heating and Cooling Strategy in 2026 as key opportunities to further enable affordable, democratic, and low-carbon heating solutions.
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France Adjusts Energy Performance Methodology
to Encourage Electric Heating
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On August 26, 2025, the French Government published an order reforming the calculation methodology of France’s Energy Performance Diagnostic (DPE), effective from 1 January 2026.
From January 1, 2026, the DPE will apply a lower electricity primary energy conversion factor (coefficient énergie primaire / CEP), reduced from 2.3 to 1.9. This technical change is explicitly intended to better reflect the updated European reference value and to correct what the Government describes as a structural bias that had tended to disadvantage electrically heated homes in the DPE methodology.
By improving the DPE score of some electrically heated dwellings through the revised coefficient, the reform is expected to strengthen incentives to deploy electric heating solutions, including heat pumps, rather than gas heating.
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UK Warm Homes Plan Expected to Be
Released in January 2026
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On January 9, POLITICO reported that the UK Government’s flagship Warm Homes Plan, a comprehensive package to set the direction for home energy efficiency, low-carbon heating, and wider “green tech” support, is expected to be published in January 2026, following continuous delays. In the meantime, key elements associated with the Plan’s direction are already being delivered through existing and newly funded schemes. In particular, support for low-carbon heating is already being implemented via the Boiler Upgrade Scheme (BUS) (providing £7,500 per eligible air- or ground-source heat pump installation; with a total BUS budget of £205 million for FY2022–2025, following an additional £25 million top-up announced for FY2024/25), and targeted delivery for lower-income households is being advanced through the Warm Homes: Local Grant (£500 million allocated for delivery from 2025–2028 by eligible local authorities) and the Warm Homes: Social Housing Fund (Wave 3) (£1.29 billion allocated for delivery from 2025–2028 by eligible social housing landlords).
As a reminder, the Warm Homes Plan is the UK Government’s overarching program to cut energy bills, improve energy security, and reduce fuel poverty by accelerating home energy-efficiency upgrades and the uptake of low-carbon heating, with a particular focus on low-income households, renters, and social housing. It is expected to bring together (and potentially expand) existing measures such as heat pump grants, targeted retrofit funding delivered via local authorities and social landlords, and a
broader policy push to improve the energy performance of the housing stock, alongside potential new tools (notably consumer finance) aimed at reducing upfront costs for households adopting eligible clean energy and efficiency measures.
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“Strategic Directions for the Heating & Cooling
Transition” Workshop
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On
February 26, 2026,
the “Strategic Directions for the Heating & Cooling Transition” workshop will bring together policymakers, investors, public authorities, associations, and NGOs to examine legislative frameworks, investment trends, and opportunities in sustainable district heating and cooling across Europe.
More information is available here.
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International Sustainable Energy Conference
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April 14, 2026,
the 4th International Sustainable Energy Conference (ISEC 2026) will gather industry stakeholders to discuss how Europe’s energy sovereignty can be achieved within a time horizon dictated by climate change and defined by politics, in Graz, Austria.
More information is available here.
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REHVA Annual Meeting 2026
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On
April 20-21, 2026,
the Federation of European Heating, Ventilation and Air Conditioning Associations (REHVA) will host its Annual Meeting in Nice, France.
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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