ASHRAE’s European Policy Update – April 22, 2026

April 22, 2026

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.

EU Regulatory Updates
EU National Updates
United Kingdom National Updates
Events
Glossary

EU Regulatory Updates

EU Review of PFAS Could Further Affect Future

Use of Fluorinated Refrigerants

On March 26, the European Chemicals Agency (ECHA) launched a public consultation on its draft socio-economic opinion regarding a proposed EU-wide restriction on per- and polyfluoroalkyl substances (PFAS), open until May 25, 2026 (find guidance here). The consultation is part of the EU’s ongoing review of whether and how to limit the use of these highly persistent chemicals, which include many fluorinated refrigerants used in HVACR systems.

The restriction proposal was submitted in 2023 by Germany, the Netherlands, Sweden, Denmark, and Norway under the EU’s chemicals regulation (REACH), with the aim of progressively phasing out PFAS. As part of the process, ECHA’s Risk Assessment Committee (RAC) adopted its final opinion on March 2, concluding that PFAS pose risks at the EU level due to their persistence and that emissions should be reduced. The Socio-Economic Analysis Committee (SEAC) adopted a draft opinion on March 10 supporting a restriction but found that a full ban would not be proportionate, and that time-limited exemptions would be necessary where alternatives are not yet feasible.

For the HVACR sector, the analysis identifies fluorinated gases as a significant source of PFAS emissions, particularly in refrigeration, air conditioning, and heat pump applications. It notes that alternatives such as CO₂, ammonia, and hydrocarbons are available for many uses, especially in new equipment, but that substitution remains more challenging in certain industrial applications and higher-capacity systems. This could, over time, affect the availability of some fluorinated refrigerants, even where they currently comply with existing EU climate rules. The latest draft restriction recommendation includes a longer transition period for HVACR applications. Specifically, the draft suggests a derogation under which restrictions would apply 13.5 years after entry into force, giving some time for the sector to adapt.

Any future restriction would sit alongside the EU’s existing F-gas Regulation, which already drives the phaseout of high global warming potential (GWP) refrigerants. A key point of contention is that many of the alternatives promoted under the F-gas framework can degrade into PFAS (notably TFA), leading industry stakeholders to argue that a broad PFAS restriction could limit viable substitution options.

A final SEAC opinion is expected by the end of 2026, after which the European Commission is expected to prepare a legislative proposal. If advanced, legislation could be finalized by around 2029, with a likely entry into force in 2030/2031.

EU Launches Consultation on Post-2030 Energy

Efficiency Framework

On March 20, the European Commission launched a public consultation open until June 12, 2026, to prepare a revision of the EU Energy Efficiency Directive (EED) for the period after 2030, in the context of the EU’s longer-term climate targets. A legislative proposal is expected in the fourth quarter of 2026.

The EED is a central part of the EU’s energy and climate framework, setting targets and obligations that drive energy savings across buildings, industry, and the public sector. Its most recent revision, adopted in 2023, introduced a binding EU energy efficiency target for 2030 and strengthened national energy savings obligations, public sector requirements, and measures affecting buildings and heating and cooling systems.

The current review will assess how the framework should evolve beyond 2030 in response to technological developments, electrification of energy use, energy affordability concerns, industrial competitiveness, and wider geopolitical pressures. It also sits alongside broader EU work on the post-2030 framework for renewables and energy governance, with heating and cooling expected to remain a key focus area given their role in energy demand and decarbonization.

Strong Demand for EU Funding to Decarbonize

Industrial Heat and Hydrogen

On March 20, the European Commission reported strong industry interest in its 2025 Innovation Fund auctions for industrial heat decarbonization and hydrogen production, with applications requesting nearly €10 billion in support. The Innovation Fund is one of the EU’s main funding instruments for low-carbon technologies. It is financed through the EU Emissions Trading System (ETS), a cap-and-trade carbon market in which companies must buy or receive allowances for each ton of CO₂ they emit, creating a financial incentive to reduce emissions. Revenues from auctioning these allowances are then channeled into the Fund. Support is allocated through competitive auctions, selecting projects based on cost-efficiency and performance in reducing greenhouse gas emissions.

The industrial heat auction attracted 85 bids requesting €1.4 billion, exceeding its €1 billion budget, while the hydrogen auction received 58 bids seeking €8.4 billion against a €1.3 billion EU budget. Additional national funding from Germany and Spain brings the total available support to around €4 billion, highlighting strong demand for EU-backed decarbonization projects.

For the HVACR sector, the industrial heat auction is particularly relevant, covering technologies such as heat pumps, electric boilers, furnaces, and thermal energy storage. The high level of oversubscription signals strong and growing interest in electrified heat solutions across multiple industrial sectors, although evaluation of bids is still ongoing, with initial results expected in mid-2026 and final awards planned for the fourth quarter of 2026.

EU National Updates

France Adjusts Building Rules to Ease

Implementation of RE2020

On March 20, the French government introduced new adjustments to its RE2020 building regulation, with changes set to enter into force on July 1, 2026. RE2020 (Réglementation Environnementale 2020) establishes energy efficiency and lifecycle carbon emission requirements for new buildings in France. The update introduces greater flexibility in how carbon limits are applied, particularly for buildings with high ceilings, outdoor spaces such as balconies and terraces, and certain complex building types, including high-rise developments. It also adjusts future carbon requirements, reflecting difficulties in meeting earlier targets under practical construction, safety, and design constraints. Additional adaptations apply to buildings connected to district heating networks and to building extensions, aiming to reduce barriers to construction and support densification. Further changes are expected by mid-2026, including updates to how summer comfort is assessed, with a stronger focus on heatwave resilience.

France Signals Focus on Electrification of

Heating in Buildings

The French government is preparing an “electrification plan” aimed at reducing dependence on fossil fuels, with the buildings sector expected to play a central role. On April 1, Prime Minister Lecornu asked ministers to accelerate electrification across sectors, including housing, with a trajectory toward 2030 and longer-term targets around 2035.

The government is working to align building renovation support schemes with electrification objectives, including replacing fossil fuel boilers with heat pumps and electrifying domestic hot water systems. The instruction also highlights a planned phase-out of gas in new buildings and a progressive shift away from gas-based heating in social housing. While no formal measures have yet been announced, the document signals a policy direction toward electrification, alongside efforts to scale capacity for heat pumps while managing the cost of renovation support.

France Distributes 2026 Energy Vouchers for

Household Energy Costs

The French government has begun distributing its 2026 “energy voucher” program to support low-income households with energy costs, with payments ranging from €48 to €277 depending on income and household size. Distribution of vouchers began on April 1, 2026, and eligible households are identified automatically based on tax and electricity supply data. The vouchers are primarily intended to help cover household energy bills, including electricity, gas, and other fuels. However, they can no longer be used for energy efficiency or renovation work. Previous versions of the program included “work vouchers” to support small-scale home energy improvements, but this option has been discontinued for new payments, with only vouchers issued before February 15, 2025, remaining valid for renovation until they expire. This change shifts the program’s focus entirely toward short-term energy cost support rather than longer-term improvements to building energy performance.

French Industry Calls for Stronger Policy Support to Accelerate Renewable Heat

French industry groups have called for a dedicated national heat strategy to accelerate the deployment of renewable and recovered heat, following discussions held on March 31 during the National Day of Renewable Heat and Cold in Paris. Heating and cooling account for around 40% of France’s final energy consumption, making it a central part of the energy transition. Renewable heat reached about 179 TWh in 2024 but is expected to increase to 297 TWh by 2030 and up to 421 TWh by 2035 under France’s national energy plan (PPE3), requiring a significant acceleration in deployment. While industry points to a strong pipeline of projects, particularly in geothermal energy and district heating, it warns that current support levels are not sufficient to meet these targets. In particular, the national Heat Fund, currently around €800 million, is seen as falling well short of the estimated €1.5 billion needed to sustain the required growth. The sector is also calling for a comprehensive heat plan to provide greater policy visibility, including clearer support schemes, simplified permitting, and more stable funding frameworks to enable investment.

Portugal Opens Funding for Energy Efficiency Upgrades

in Social Housing

On April 6, Portugal opened a new call for funding under the Alentejo 2030 program to support energy efficiency improvements in social housing. The call targets municipal projects and supports measures such as building envelope upgrades, replacement of existing systems with more efficient technologies, and the integration of renewable energy solutions. While no specific technical requirements are detailed at this stage, the program is expected to support renovation activity across publicly owned housing stock, including upgrades to heating and cooling systems. Applications will be accepted in multiple phases throughout 2026, with the first deadline set for April 30.

Greece Extends Deadlines for Heating System

Replacement Program

The Greek government has extended key deadlines under its “Replace Heating System and Water Heater” program, following a third amendment to its implementation guide published in the Government Gazette. The update gives beneficiaries and suppliers additional time to complete installations and administrative steps.

All major deadlines, including voucher use, equipment purchases, recycling of old systems, and submission of supporting documents, have been extended from April 30, 2026, to June 25, 2026, to help avoid supply chain bottlenecks and ensure full use of available funding.

The program is funded through the EU’s Recovery and Resilience Facility (RRF), a funding program set up to support economic recovery and investments in clean energy and efficiency.

United Kingdom National Updates

UK Confirms Low-Carbon Heating and Tighter Building Services Rules for New Buildings From 2027

On March 24, the UK government confirmed new Building Regulations to implement the Future Homes and Buildings Standard, setting updated requirements for new buildings in England from March 24, 2027. The regulations are intended to ensure that new homes and non-domestic buildings are built with low-carbon heating and high levels of energy efficiency, so they will not require retrofit to become net-zero as the electricity grid decarbonizes.

For HVACR systems, the updated regulations and statutory guidance introduce more detailed requirements for building services. This includes minimum building services efficiencies and controls, heat pump controls, insulation for heat distribution systems, and measures to limit heat loss from low-carbon heating systems. The guidance also sets clearer expectations for the installation and commissioning of fixed building services, including heat pumps and mechanical ventilation, and emphasizes the importance of following manufacturer instructions. The regulations also introduce a new requirement for on-site renewable electricity generation in new dwellings and buildings containing dwellings. Finally, the updated guidance sets out compliance routes for buildings connected to new or existing heat networks, as well as certification routes and enforcement options for building services installations that do not meet the required standards.

UK Heat Pump Sales Grow in 2025 but Remain

Below Deployment Targets

On March 26, the UK Heat Pump Association published data showing that heat pump sales reached 125,037 units in 2025, representing a 27% increase compared to 2024. The figures include hydronic heat pumps as well as other types, such as ground and water source systems and domestic hot water heat pumps. While this marks continued growth in the UK market, the association notes that annual deployment would need to increase significantly to reach the government’s target of 450,000 heat pump installations per year by 2030. According to the association, this would require sustained year-on-year growth of around 33%.

The data also indicates an increase in domestic manufacturing and continued uptake across different heat pump types. Industry representatives highlight that future growth will depend on policy developments, including the Future Homes and Buildings Standard and broader energy pricing conditions.

Events

International Sustainable Energy Conference

On 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.