Clean Heat is the Solution to Europe’s Triple Energy Crisis
Only by supporting Europe’s clean heating and cooling industry, can the EU address the current triple crisis of geopolitical dependency, energy poverty, and structurally high industrial energy costs. Clean Heat Europe and Cool Heating Coalition call on the Commission to support clean heat uptake by bringing down costs for citizens and industry to deploy such solutions, while ensuring regulatory stability.
Today, 10 September 2025, EU Commission President Ursula von der Leyen gave her annual State of the Union speech. The address was a sobering reminder of the many challenges facing Europe, and the scope of action necessary to address these issues.
Around 50% of Europe’s energy consumption is heating and cooling, and about 75% of that heating is still powered by fossil fuels. Currently, only 6% of Europe’s heating and cooling mix is provided by clean, renewable heating technologies.
Europe faces a triple energy crisis:
Geopolitical dependencies on fossil fuel
Energy poverty felt by citizens across Europe
Structurally high energy prices undercutting our industrial competitiveness
However, while President von der Leyen accurately diagnosed these ailments hurting Europe, called out our dependency on Russian gas, and made reference to the importance of homegrown renewables, the speech fell short of mentioning the critical role of clean heating and cooling in tackling these issues.
“Diversifying fossil fuel energy imports does not serve Europe's energy security goals, and only delays the real solution: renewables. Heat makes up the largest share of energy use for both industry and households. Electrification of heating, together with solar and geothermal, must become the default EU heating solutions.This is the only strategy that delivers independence of costly gas imports while driving decarbonisation.”
— Tom Vasseur – Senior Policy Officer, Cool Heating Coalition
While the EU’s clean heat industry is strong, with huge capacity to manufacture critical technologies such as heat pumps, district heating and cooling systems, geothermal energy and solar thermal systems, deployment of these solutions continues to stutter. Already, up to 70% of heat pumps installed in Europe are manufactured in the EU, 90% of Europe’s solar thermal demand is met by domestic production, and in 2021, the EU trade surplus in district heating and cooling networks amounted to more than two billion Euros.
Demand for clean heat is currently undercut by a cluster of issues:
A high total cost of ownership for clean heat solutions compared to fossil fuels, caused by imbalanced prices for clean energy sources and technologies, as well as high installation costs levied onto households
High upfront costs for the development of clean heat facilities and the expansion and modernisation of heating and cooling networks
Volatile and ever-changing regulatory conditions, in which legislation is difficult to navigate, combined with slow and complex permitting procedures for clean heat projects
Infrastructural deficiencies, such as underdeveloped heating networks and electricity grids which hamper the faster rollout of a diverse clean heat mix
“In 2023, 47 million people could not afford to heat their homes in Europe, and that number is set to increase as fossil fuel prices rise. As Europe races to phase out fossil fuels, we must take care to provide social support for low income households who otherwise will not be able to afford participating in the green transition.”
— Joel Boehme – Campaign Manager, Clean Heat Europe
To enable clean heat deployment, the EU Commission should:
Ensure the full implementation of the EU Green Deal, which guarantees a long-term business case for clean heating and cooling in Europe
Help households shift to clean heat through generous, predictable support schemes for installation and connection, and via proactive information to citizens about the full range of clean heat solutions available
Rebalance the price ratio between electricity and gas to guarantee affordability for consumers, as clean heat solutions are able to immediately reduce energy bills once electricity prices are no more than twice that of gas
Direct EU funds towards the heating and cooling transition by supporting and de-risking large-scale investment to bring down up-front costs for clean heating and cooling facilities
For any and all questions, please reach out to:
Joel Boehme,
Clean Heat Europe,
joel.boehme@ehpa.org,
+32456627475
Ana Nanu
Cool Heating Coalition,
ana.nanu@coolheatingcoalition.eu,
+4915773680790
About the Cool Heating Coalition
Cool Heating Coalition is an umbrella organisation of 16 NGOs and think tanks advocating for decarbonised, renewable, and affordable heating and cooling across the EU by 2040. Our heating and cooling needs must be met in a way that advances affordability, security, health, and climate action.
About Clean Heat Europe