ASHRAE’s European Policy Update – June 17, 2026

June 17, 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

European Commission Proposes Fiscal Flexibility for Energy Security and Electrification Investments

On June 3, the European Commission proposed broadening the scope of the National Escape Clause, a mechanism that allows Member States temporary flexibility under EU fiscal rules for exceptional spending needs. The proposal would allow certain energy-security investments to benefit from the same flexibility currently available for defence spending. Member States could request flexibility for measures that reduce dependence on imported fossil fuels and strengthen the resilience of the European energy system.

Eligible measures could include support for energy efficiency, electrification of end-use sectors, electricity grids, energy storage, and clean energy capacity expansion. The proposal reflects a growing EU policy shift that treats reducing fossil-fuel dependence as a security objective as well as a climate objective, potentially making it easier for Member States to prioritize investments in electrification and energy infrastructure despite fiscal constraints. The proposal is not automatic and would require Member States to request the expanded flexibility, which would then be assessed by the Commission. Further guidance on eligibility, implementation, and reporting requirements is expected in the coming months.

European Commission Awards €400 Million to Decarbonize Industrial Heat Production

On May 22, the European Commission selected 65 projects across 10 European countries under the first Innovation Fund Heat Auction, awarding approximately €400 million to support the deployment of low-carbon industrial heat technologies. The selected projects are expected to deliver around 16.3 TWh of decarbonized heat during their first five years of operation and avoid more than 6.6 million tonnes of CO₂ emissions over a ten-year period.

The projects focus on replacing fossil-fuel-based industrial heat production with technologies including heat pumps, electric heating systems, solar thermal, geothermal energy, and thermal energy storage. Together they represent approximately 766 MW of thermal capacity across sectors such as pulp and paper, glass, ceramics, steel, food and beverage, and pharmaceuticals. The Commission has also announced plans for a second heat auction in 2026 with a budget of €1 billion.

Poll Finds Continued Public Support for Heat Pumps and Electrification Across Europe

A survey commissioned by climate and energy policy organizations E3G, Transport & Environment, and the Electrification Alliance found broad public support for electrification measures linked to energy security across France, Germany, Italy, Poland, and Spain. Across the five countries, 64% of respondents said reducing dependence on imported fossil fuels would make Europe safer, while a majority in each country supported government financial support for heat pump installations.

In France, 66% of respondents supported government financial support for heat pumps, including 69% of Macron voters and 67% of Le Pen voters. The findings suggest that support for heat pump deployment extends across political divides and remains broadly aligned with the country's wider electrification and building decarbonization agenda.

New Publication Explores Building Automation's Role in Energy Performance and ESG Reporting

The European Building Automation and Controls Association (eu.bac) and the Federation of European Heating, Ventilation and Air Conditioning Associations (REHVA) have published a new paper examining EN ISO 52120-1, the international standard covering the impact of building automation and control systems on building energy performance. The publication explores how building automation can support energy efficiency, indoor environmental quality, energy management, and sustainability reporting, while outlining the standard's classification framework for automation and control functions across building systems. The paper also examines the role of building automation in supporting compliance with European requirements related to building performance, ESG reporting, and building decarbonization.

EU National Updates

France Establishes Approval Scheme for Heat Pump Models

On May 29, France published a decree and implementing ministerial order establishing a formal approval framework for certain heat pump models. The new system applies to individual air-to-water, water-to-water, and ground-source heat pumps, and requires manufacturers to demonstrate compliance with quality, industrial resilience, and environmental requirements through a process administered by the French Agency for Ecological Transition (ADEME). Approved models will be listed in an official government register.

The measure follows the electrification strategy presented by the French government in April 2026, which identified heat pumps as a central technology for building electrification and reducing fossil fuel use in buildings. The framework also includes a transitional approval pathway for manufacturers that commit to investment plans demonstrating compliance within a maximum two-year period.

France Signals New Heating Decarbonization Requirement for Deep Renovation Support

According to guidance published by France's National Housing Agency (Anah), from 1 September 2026 new applications under MaPrimeRénov', France's main financial support scheme for residential energy renovations, will need to include the decarbonization of heating and domestic hot water systems when seeking support for deep renovations of single-family homes. Under the proposed approach, projects that retain or replace gas-fired boilers would no longer qualify for support under the deep renovation track of the program.

France's National Housing Agency also outlined plans for a turnkey heat pump offering aimed at lower-income households currently using fossil-fuel heating. The proposed model would combine heat pump installation, maintenance, financing, and potentially electricity supply into a single monthly payment package over a period of around three years, alongside existing support mechanisms such as MaPrimeRénov' and Energy Savings Certificates (CEE). The objective is to reduce upfront investment costs while keeping monthly payments below previous heating bills.

French Senate Proposal Seeks to Adapt Energy Renovation Requirements for Traditional Buildings

On June 3, Senator Sabine Drexler introduced a proposal in the French Senate that would create a new category of "ordinary heritage buildings" covering pre-1948 buildings constructed using traditional materials and techniques. The proposal argues that existing energy renovation and energy performance assessment approaches do not adequately reflect the characteristics of these buildings.

Among other measures, the text proposes a dedicated energy and heritage performance assessment for qualifying buildings, would require renovation works to take account of traditional materials and hygrothermal performance, and would delay the application of certain renovation obligations until 2030. The proposal remains at a very early stage of the legislative process and has not been adopted by either chamber of the French Parliament. As a result, there is no certainty that the measures will progress in their current form, although the proposal reflects a growing debate over how energy performance requirements should be applied to older buildings while preserving their architectural characteristics.

French Heat Pump Demand Rises Following Electrification Push, but Deployment Barriers Persist

Industry participants in France report a sharp increase in demand for heat pumps following the government's electrification plan announced in April and recent increases in fossil fuel prices. According to renovation company Effy, requests for air-to-water heat pumps increased by 140% in April compared with the same month in 2025, while energy efficiency provider PrimesEnergie reported a threefold increase in applications for heat pump incentives.

At the same time, stakeholders highlight that large-scale deployment remains challenging, particularly in multifamily residential buildings. While heat pumps can often be integrated into detached homes using existing heating systems, installation in apartment buildings can require more extensive modifications and higher upfront investment. One renovation project cited in the article left homeowners with a remaining cost of approximately €23,400 per dwelling after subsidies. The article also notes that air-to-air heat pumps account for around 70% of annual heat pump sales in France, reflecting growing demand for combined heating and cooling solutions.

The developments illustrate both the opportunities and challenges associated with accelerating building electrification in France. While policy support and energy price signals appear to be driving greater interest in heat pumps, financing, technical constraints, and building characteristics remain important barriers to wider deployment.

Portugal Launches €40 Million Program for Energy Upgrades in Public Buildings

Portugal has opened a €40 million funding program to support energy performance improvements in central government buildings. The program provides grants covering up to 85% of eligible costs and supports projects across mainland Portugal through March 2027.

Eligible measures include upgrades to building envelopes, replacement of inefficient windows and lighting systems, installation of heating, cooling, and ventilation systems, deployment of photovoltaic systems for self-consumption, and the introduction of building monitoring solutions.

The program forms part of Portugal's efforts to decarbonize public buildings and reduce energy consumption, while improving comfort and operational performance across the public building stock.

Greece Updates Energy Efficiency Program for Commercial and Non-Residential Buildings

On June 4, Greece published amendments to its "Exoikonomo-Epicheiro" program, which supports energy efficiency investments in commercial and other non-residential buildings through funding from the EU Recovery and Resilience Facility. The program continues to support a wide range of building upgrades, including heat pumps, high-efficiency cooling systems, heat recovery ventilation, solar thermal systems, and Building Energy Management Systems (BEMS).

The updated rules also clarify that fossil-fuel boilers and burners are not eligible for support and extend expenditure eligibility deadlines for certain projects. The program forms part of Greece's broader effort to improve building energy performance while accelerating the adoption of low-carbon building technologies.

United Kingdom National Updates

UK Funds Heat Network Upgrades and Low-Carbon

Heating Projects

On May 20, the UK government announced £15.6 million for efficiency upgrades to 94 existing heat networks across England and Wales, alongside £25 million for four new low-carbon heat network projects. The funding will support measures such as pipe replacement, insulation upgrades, and improved building interface units to reduce heat losses and improve system performance.

Several of the supported projects will use heat pumps and waste heat recovery to provide low-carbon heating. These include the expansion of Bristol's heat network using heat pumps and a new network in Rochdale that will recover heat from a sewer system to supply public buildings, businesses, and residential properties. The projects form part of the UK's wider effort to decarbonize heat and improve the efficiency of district heating infrastructure.

UK Retains Existing HFC Phase-Down Schedule

Following Consultation

On May 16, the UK government confirmed that it will not introduce proposed changes to accelerate the Great Britain HFC phase-down from January 2027. Following a consultation on tightening hydrofluorocarbon (HFC) supply limits, The Department of Environment, Food, and Rural Affairs (DEFRA) concluded that further work is required before changes can be implemented.

The decision means the existing HFC quota reduction schedule under the F-gas Regulation will remain in force from 2027. While the government remains committed to reforming the phase-down in future, the announcement provides short-term regulatory certainty for sectors that rely on refrigerants, including refrigeration, air conditioning, and heat pump applications. DEFRA has indicated that it will publish a summary of consultation responses and outline next steps later in 2026.

Events

Earthfest 2026 – The Future of Transport and Energy

From June 24–25, 2026, Earthfest will host its Future of Transport and Energy Summit in London as part of London Climate Action Week. The event will bring together leaders from the transport, energy, policy, and research sectors to discuss pathways for large-scale energy decarbonization, with sessions focused on the role of consumers, innovation, and cross-sector collaboration in the energy transition.