EU Regulatory Updates

 

 

A leaked draft of the European Commission's forthcoming Electrification Action Plan, published on July 8, ahead of its expected adoption on July 17, outlines how the Commission intends to accelerate electrification across buildings, transport, and industry. The leaked document presents electrification as a central pillar of the EU's strategy to reduce dependence on imported fossil fuels, strengthen energy security, and improve competitiveness. For the building sector, it identifies heat pumps and district heating as key technologies for replacing fossil fuel heating while highlighting the role of reversible heat pumps in improving resilience to increasingly frequent heatwaves. As the document has not yet been formally adopted, its contents remain subject to change.

 

The draft proposes a goal of doubling annual heat pump installations by 2030 compared with 2025. It recommends that Member States use the Social Climate Fund, the EU's financial instrument supporting vulnerable households during the energy transition, to introduce social leasing schemes, subsidies, low- or zero-interest loans, and on-bill financing for heat pumps and other clean heating technologies. The draft also proposes exploring a Clean Heat Market Mechanism by 2027. According to the leaked text, the mechanism would encourage manufacturers to increase the share of heat pumps in their sales, steer installers toward clean heating and cooling technologies, strengthen market competition, and reduce the upfront cost difference between heat pumps and fossil fuel heating systems. The Commission also states that it will examine whether future revisions of the EU Public Procurement rules should require the installation of heat pumps in public buildings.

 

District heating and cooling also feature prominently in the leaked draft. The document identifies networks supplied by large heat pumps, electric boilers, geothermal energy, solar thermal energy, recovered waste heat, and thermal energy storage as important tools for reducing fossil fuel consumption while increasing flexibility in the electricity system. It proposes launching an EU Waste Heat Initiative to encourage investment in recovering and reusing industrial waste heat. It also proposes expanding financing for district heating and cooling projects through the Energy Efficiency Financing Coalition, an EU initiative that aims to increase private investment in energy efficiency projects. Municipalities would receive support to prepare local heating and cooling plans through the European City Facility, an existing EU program that helps local authorities develop energy investment projects. The leaked draft proposes a €15 million pilot to support up to 180 local heating and cooling plans, with the longer-term ambition of expanding the initiative to around 1,000 municipalities.

 

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On June 24, the European Commission proposed revisions to the EU's energy labeling framework aimed at simplifying compliance while adapting the rules to modern sales channels. For heating and cooling equipment, including heat pumps, the proposal would allow energy labels to be provided as part of the quotation or contractual offer, recognizing that these systems are typically specified and sold through installers rather than displayed in retail stores.

 

The proposal also introduces greater flexibility in how energy labels are displayed across different product categories, including the use of digital solutions where appropriate, while maintaining consumers' access to information on energy performance. The Commission says the changes are intended to reduce administrative burdens without weakening the role of energy labels in supporting informed purchasing decisions and encouraging more efficient products.

 

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On June 19, the European Commission launched a call for expressions of interest under its new Better Homes Partnerships initiative, inviting stakeholders to submit mature building renovation projects and multi-stakeholder partnerships that could be replicated across the EU. Unlike a traditional funding call, the initiative does not provide direct financial support. Instead, it aims to identify projects with demonstrated implementation potential and help accelerate their deployment by providing Commission recognition, facilitating partnerships, and addressing regulatory, technical, and financial barriers to scaling. Expressions of interest are open until August 21, 2026.

 

For the HVAC and building services sector, the initiative focuses on scalable solutions such as heat pump deployment, smart building energy management systems, demand-responsive buildings, district heating integration, and innovative renovation delivery models. By identifying and promoting successful projects, the Commission aims to accelerate the wider adoption of proven technologies and implementation approaches that support affordable building renovation and decarbonization across the EU.

 

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On June 23, the European Commission launched Electrify Now, a global initiative to accelerate electrification across buildings, transport, and industry as a means of reducing dependence on fossil fuels, strengthening energy security, and improving economic resilience. The initiative brings together the European Commission, the Presidencies of the United Nations Climate Change Conferences (COP30, COP31, and COP32), the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), and several national governments. It is open to additional governments, industry organizations, financial institutions, and other stakeholders.

 

Electrify Now aims to advance a proposed global target of increasing electrification to 35% of final energy demand by 2035 through practical cooperation, knowledge sharing, and investment. For the building sector, the initiative places building electrification alongside transport and industry as a strategic priority for reducing fossil fuel dependence and improving energy security. The platform is expected to publish policy recommendations, showcase implementation projects, and support international cooperation in the lead-up to COP31.

 

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On June 22, the European Heat Pump Association published an analysis estimating that the 29.3 million heat pumps installed across Europe now provide the equivalent of more than 22.8 billion cubic meters of natural gas annually, matching the liquefied natural gas (LNG) carried by more than 200 tankers. According to the analysis, this is equivalent to around 7% of the EU's annual LNG imports and avoided an estimated €9.7 billion in gas import costs during 2025.

 

The analysis accompanies the Association's 2026 market report, which found that heat pump sales increased by 13% in 2025, reaching 2.9 million units across 21 European countries. France recorded the highest number of units sold (528,000), while Germany saw the strongest year-on-year growth (50%). The findings illustrate the growing contribution of heat pumps to both building decarbonization and Europe's efforts to reduce dependence on imported natural gas.

 

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EU National Updates

 

 

On June 26, France announced a €130 million program to improve thermal comfort in schools, childcare centers, and municipal leisure facilities in response to increasingly frequent heatwaves. The package combines immediate funding for cooling equipment with longer-term support for building adaptation, bringing together EDF, the Banque des Territoires, La Banque Postale, ACTEE, and the French government.

 

The program includes €80 million from EDF, with €40 million available immediately to support the installation of more than 100,000 cooling devices in over 10,000 facilities before September 2026. A further €40 million will support permanent cooling projects through June 2027, including the installation of reversible air-to-air heat pumps in up to 4,000 buildings, while the remaining funding will support building assessments and broader climate adaptation measures. The initiative signals a growing shift toward integrating cooling and thermal resilience into the long-term modernization of public buildings.

 

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On July 5, France published the first official list of heat pump models approved under the quality and industrial resilience certification framework established in May 2026. That framework introduced a government approval process for certain air-to-water, water-to-water, and ground-source heat pumps, requiring manufacturers to meet defined quality and industrial resilience criteria before their products can qualify for enhanced public incentives. The new order identifies both fully approved models and models granted transitional approval while manufacturers complete investment commitments.

 

Beginning September 1, only approved models will qualify for the enhanced Coup de pouce chauffage ("Heating Boost") incentive, a bonus payment under France's Energy Savings Certificates (CEE) energy efficiency program that supports the replacement of fossil fuel heating systems with more efficient alternatives, including heat pumps. By publishing the approved product list, the French government has effectively determined which heat pump models will be eligible for this enhanced financial support, making certification an important consideration for manufacturers, distributors, and HVAC professionals specifying equipment for the French market.

 

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On June 17, the Greek government announced that more than 6,700 eligibility certificates had been issued during the initial phase of its €500 million Home Renovation program under the National Strategic Reference Framework (NSRF) 2021-2027), the country's main EU-funded investment program for regional development. Following the opening of the eligibility phase on June 15, the program supports the renovation of homes built before 1990 while requiring that 20-40% of eligible expenditure be dedicated to energy efficiency improvements. Grants range from 70% to 95%, with up to €36,000 available per dwelling for eligible renovation and energy upgrade works.

 

Unlike traditional energy retrofit programs, the initiative combines general residential renovation with targeted energy efficiency improvements to increase the supply of quality housing while improving the performance of Greece's existing residential building stock. Eligible energy measures include building envelope improvements and other upgrades that enhance energy performance, while supported properties must remain owner-occupied or available for long-term rental rather than short-term tourist accommodation for a defined period after completion.

 

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On June 23, the Region of Western Macedonia pre-published the implementation guide for a new residential heat pump support program under Greece's Just Development Transition Program, the national program supporting former coal regions, and backed by approximately €11.7 million from the EU. The program will support homeowners replacing oil-fired and other conventional heating systems with heat pumps for space heating and cooling. Optional measures include domestic hot water systems supplied by the heat pump, thermal insulation upgrades, and rooftop photovoltaic systems with battery storage.

 

The program is targeted at homes located outside district heating and natural gas service areas, where heat pumps are intended to become the primary low-carbon heating solution. Grants vary according to household income, reaching up to 100% of eligible costs for core energy efficiency measures, with a maximum eligible project value of €22,500 per application. For the HVACR sector, the initiative illustrates how Greece's coal transition is being linked to the deployment of heat pumps and integrated residential energy upgrades at the regional level.

 

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United Kingdom National Updates

 

 

On June 26, the UK government announced that the Boiler Upgrade Scheme grant for households replacing oil-fired heating systems with heat pumps will increase from £7,500 to £9,000 from 21 July. The measure applies to eligible homes in England and Wales and is intended to encourage rural households that rely on heating oil to switch to electric heating technologies while reducing exposure to volatile fossil fuel prices.

 

The government estimates that around 200,000 oil-heated households will receive information about the enhanced support. By increasing incentives for off-grid homes, the measure targets one of the building segments where heat pumps can provide an alternative to oil-fired heating, reinforcing the UK's broader strategy to accelerate residential heating electrification.

 

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New research published by consumer organization “Which?” suggests that uncertainty, rather than upfront cost alone, remains a significant barrier to heat pump adoption in the UK. Among more than 1,000 homeowners who had considered but rejected or remained undecided about installing a heat pump, 33% said there were too many long-term uncertainties, 29% viewed the investment as "too much of a gamble", and 49% cited affordability as a key concern.

 

The research also highlights the importance of trusted information and installation quality. While 77% of respondents were unaware of the UK's Microgeneration Certification Scheme (MCS), 75% said certification would increase their confidence once it was explained as a quality assurance scheme for renewable energy systems. The findings indicate that strengthening consumer trust in installers and providing clearer information on system performance may be as important as financial support in increasing heat pump uptake.

 

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Events

 

 

From September 15–18, RoomVent 2026 will take place in Prague, Czech Republic, as a leading international conference on room ventilation and indoor air quality. The event will bring together policymakers, designers, researchers, and engineers to exchange technical knowledge, present new research, and discuss developments in ventilation practices and indoor environmental quality.

 

More information is available here.

 

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From September 30–October 1, AIVIC 2026 will bring together researchers, industry experts, and policymakers to discuss innovations in smart ventilation, indoor environmental quality, building airtightness, and ventilative cooling. Organized by AIVIC, TightVent Europe, Venticool, KICT, and KIABES, the conference will feature invited presentations, technical papers, and an industry exhibition focused on resilient and adaptive building solutions.

 

More information is available here.

 

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On November 5, the Efficient Buildings Europe industry association will host its annual event to promote policies and technologies driving renovation of the EU building stock. The event - supported by the 48 partners of the “Renovate Europe” campaign - will gather industry, civil society and policymakers from across Europe.

 

More information is available here.

 

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From November 25–26, elementalLONDON will take place at ExCeL London as the United Kingdom’s dedicated event for built environment professionals focused on reducing energy use and carbon emissions in commercial and large-scale residential buildings. Co-located with London Build, the event will bring together industry experts, technology providers, and policymakers to explore building services, sustainability, retrofit solutions, regulatory developments, and emerging technologies through exhibitions, technical sessions, and networking opportunities.

 

More information is available here.

 

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On December 1, the European Heat Pump Association (EHPA) will host the Heat Pump Forum & Awards 2026 in Brussels, Belgium. Under the theme “Secure Heat for a Competitive Future,” the event will bring together policymakers, industry leaders, and experts to discuss the role of heat pumps in supporting Europe’s energy security, competitiveness, and climate objectives, while showcasing innovative projects through the annual Heat Pump Awards.

 

More information is available here.

 

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Glossary