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European Heat Pump Industry Warns of €7 Billion Risk Due to EU Action Plan Delay

More than 60 CEOs from the heat pump industry have issued a stark warning that delays in the EU Heat Pump Action Plan are threatening a critical pillar of Europe’s net-zero industrial future. In a joint letter to European Commission President Ursula von der Leyen, they warned that €7 billion in planned investments across Europe between 2022 and 2025 are now at risk. These delays could impact over 160,000 existing sector jobs in Europe and undermine a sector with vast growth potential.

The European Commission has identified the heat pump sector as crucial for achieving energy independence under REPowerEU and the Green Deal Industrial Plan. The action plan—originally expected in early 2024—was set to introduce measures supporting the sector in reaching its full potential.

However, the latest figures show a decline in heat pump sales at the end of 2023, driven by shifting policy signals and falling gas prices that have reduced the economic attractiveness of heat pumps. These trends are shaking confidence among consumers and manufacturers alike.

Governments in the United States, Asia, and other regions are ramping up support for heat pump technologies. The EU’s Heat Pump Action Plan must be published without delay to ensure clear policy direction, encourage affordability measures, and rebuild trust among consumers, policymakers, and industry players. Doing so will help secure and expand the significant investments already made.

Martin Forsén, President of the European Heat Pump Association, stated:
“A strong heat pump market brings benefits to Europeans—from industrial leadership and jobs to decarbonization and protection from volatile gas prices. As other global regions step up support, the Commission’s delay in publishing the action plan is exactly the wrong move. Today, industry leaders are calling for immediate action to put Europe on the right track for energy independence and net-zero competitiveness.”

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