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Heating: EU takes step towards a fairer playing field 


On 17 December 2022, MEPs and EU governments reached an agreement on the EU’s carbon market, the Emissions Trading System (ETS). An ETS will be set up for buildings and road transport from 2027, meaning a price will be put on the CO2 emitted by fossil fuel heating.   

EHPA has long supported such a carbon price, which is key to creating a more level playing field between fossil energy and heat pumps.   

“It is about time the heating sector was brought in line with the EU’s ‘polluter pays’ principle – this is a key milestone on the path to decarbonizing heat and cooling through large-scale heat pump roll-out”, said Jozefien Vanbecelaere, Head of EU Affairs at the European Heat Pump Association.   

The EU institutions also agreed that governments will need to allocate all the revenues they receive from ETS auctioning to climate action. This should hugely boost investments in green technology such as heat pumps.  

MEPs and the Council also agreed to create a Social Climate Fund (SCF) to support vulnerable households, micro-enterprises and transport worth €86.7 billion from 2026 to 2032.  

“The Social Climate Fund is crucial to help those who need it most to decarbonise their homes”, said Vanbecelaere. 

This fund will be used to cushion the impacts of the new ETS agreement on vulnerable households by supporting investments in for example the decarbonisation of heating and cooling in buildings. 


Daniela Floris
Communications Officer

+32 499 71 75 39