EU's Delayed Heat Pump Action Plan Risks €7 Billion Investment and Jobs

Wednesday, 31 January 2024

Leaders from the heat pump industry are raising alarms over the European Union's delayed Heat Pump Action Plan, emphasizing that the holdup could severely impact planned investments worth €7 billion, jeopardize 160,000 existing jobs, and stifle the sector's growth potential. This delay is seen as a significant setback for Europe's ambition to achieve a net zero industry and undermines the continent's strides towards energy independence. The European Commission had previously acknowledged the critical role of heat pumps in this journey, under initiatives like REPowerEU and the Green Deal Industrial Plan.

However, with the action plan's release pushed back from its original early 2024 schedule, there's growing concern over the declining sales of heat pumps towards the end of 2023. Factors such as policy shifts, diminishing consumer and manufacturer confidence, and a reduction in gas prices, which made heat pumps less economically attractive, are contributing to this trend. This situation contrasts with other global regions like the US and Asia, where support for heat pump technologies is on the rise.

Industry leaders are urging the EU Commission for the prompt release of the Heat Pump Action Plan to restore confidence across the board and ensure the continued flow of investments. Martin Forsén, President of the European Heat Pump Association, criticized the delay, highlighting the need for immediate action to align Europe with its goals for energy independence and a competitive net zero future.

For more in-depth information, you can explore the original articles on European Heat Pump Association, pv magazine International, and Energy Live News.