Policy forums
From Local Benefits to Global Impact: The Policy Challenges of Heat Pumps
Heat pumps create substantial societal value by not only reducing greenhouse gas emissions but also enhancing energy affordability and improving living comfort.
They can help mitigate energy poverty by lowering heating costs for vulnerable households, while also improving indoor air quality and reducing health risks linked to fossil fuel combustion. Economically, the growth of the heat pump sector supports local job creation in manufacturing, installation, and maintenance, strengthening regional competitiveness in the green technology market. However, on the policy side, some major challenges remain: locally, municipalities struggle with limited workforce capacity, permitting hurdles, and ensuring equitable access to subsidies.
Nationally, fragmented regulatory frameworks and fluctuating incentive schemes can deter long-term investments. At the European level, policymakers must balance ambitious climate targets with concerns over energy security and affordability, while internationally, supply chain bottlenecks, competition for critical raw materials, and uneven climate commitments complicate the scaling of heat pump adoption.
In three distinct policy forums these challenges and potential solutions will discussed in an open dialogue embracing the different perspectives and views from industry, innovation and policy making.
Policy Forums: Overview of Topics and Descriptions
Time: Thursday, 28th May 2026
Host: IEA
Abstract: Heat pumps are at the core of debates around global energy transitions, energy security, and industrial competitiveness. Scaling up their deployment can contribute to these objectives, yet today’s supply chains face rising pressure from rapidly increasing demand, evolving trade dynamics, and tightening industrial policies. Drawing on findings from the IEA’s Energy Technology Perspectives 2026 as well as complementary analysis and expert insights, this forum will convene policymakers, industry leaders, and experts to explore how heat pump supply chains can scale up in a secure, resilient, and sustainable manner.
Further details on the agenda and speakers will be shared soon.
Time: Thursday, 28th May 2026
Host: EHPA
Abstract: A favourable energy market design is key to accelerating the deployment of electric heat pumps and decarbonising heating. Central is a favourable price ratio between electricity and gas, so that heat pumps become economically superior to gas boilers. Strong subsidies and coherent policies further drive adoption by reducing upfront costs and providing planning certainty. National incentives and strategies like the EU’s REPowerEU plan show how policy signals can rapidly shift markets. Early electrification combined with abundant, low-cost, low-carbon electricity—such as renewable or hydropower in Nordic countries—creates ideal conditions for heat pump integration. Markets aligned with ambitious decarbonisation and fossil phase-out goals show the strongest growth. Together, these factors define a policy pathway for efficient electrification, improved energy security, and climate-neutral heating. However, fragmented energy markets and uneven policy landscape across Europe continue to hinder consistent market signals across borders and slows the coordinated transition towards a common electrified heating market.
Further details on the agenda and speakers will be shared soon.
Time: Thursday, 28th May 2026
Host: Austrian Federal Ministry of Innovation, Mobility and Infrastructure
Abstract: Heat pumps are a key technology for decarbonising the heating sector. They are already well established in the building sector - both in single- and multi-family houses - and are increasingly used for retrofitting and replacing fossil gas boilers. At the same time, the role of heat pumps is expanding far beyond conventional building applications. Research, development and innovation are essential to accelerate technological progress and broad market deployment.
Key innovation areas include large-scale heat pumps for the decarbonisation of district heating, high-temperature heat pumps for industrial processes and heat pump systems combined with thermal and electrical storage to provide flexibility for the power grid.
Despite growing momentum, the rollout of heat pumps is still progressing far too slowly compared to political decarbonisation targets and the pathways outlined in global transformation scenarios. Well-designed, coherent, and forward-looking policy frameworks are therefore critical accelerators for market uptake, cost reduction and system integration.
In this forum, policymakers, researchers, technology providers and users will discuss how innovation policy can unlock the full potential of heat pump technologies and systems. Central questions include which national and international best-practice examples can be scaled or transferred, how innovative policy approaches and cross-sector collaboration can overcome existing linear and siloed market structures, and what future policy instruments are needed to accelerate deployment while ensuring socially just and system-friendly outcomes.
By integrating perspectives from technology development, market formation, governance innovation and user experience, the discussion aims to outline next-generation innovation policy approaches capable of enabling a rapid, resilient, and sustainable heat pump transition.
Further details on the agenda and speakers will be shared soon.