Designing an Effective EU Heating Strategy

Read the full position paper here.

The revised Renewable Energy Directive (RED), Energy Performance of Buildings Directive (EPBD), and the Energy Efficiency Directive (EED), are setting the groundwork setting the rules for the decarbonisation of one of the most energy-demanding sectors in Europe: buildings.

Today, buildings’ energy needs represent 40% of the EU’s annual energy consumption, of which 80% is used for space and water heating and cooling and which is responsible for over one third of the EU’s overall GHG emissions. To drastically reduce the emissions and energy demand of buildings and meet the zero-emission building performance levels for existing building stock by 2050, substantial investments in buildings' energy performance will be needed. This includes improvements in thermal retention performances and upgrading heating systems (within technical and economic boundaries) and also applies to the energy infrastructure that will have to keep up with a shifting demand between energy vectors according to the availability of renewable electricity.

To achieve a fair, realistic and timely decarbonisation of the building stock while maintaining affordability and social inclusion, we believe the Strategy must embrace a diversified, flexible and cost-efficient approach.

Europe needs a pragmatic and effective heating and cooling strategy in line with its decarbonisation targets and the current geopolitical landscape. The choice of the most effective heating solution depends on a multitude of factors including climate, type of buildings, space availability, energy infrastructure and of renewable energies. The transition strategy and criteria for decarbonising cannot be determined by a single top-down approach at the EU level and must consider the regional/local factors. Moreover, to achieve this outcome, a coordinated process between all stakeholders is required to ensure the most effective and socially fair solutions are implemented.

Eurogas supports the multisource approach, which recognises energy from efficient district heating, renewable energy communities and renewable sources as eligible to cover zero-emission buildings' primary energy consumption. The latter category includes energy sources like biomethane and renewable electricity. Both have been recognised the same status; however, policies have been largely in favour of electrification, de facto leaving the decarbonisation potential of renewable gases untapped.

To complement electrification and pursue a comprehensive, resilient transition for heating in buildings, we propose the following policy recommendations:

• Ensure technological neutrality in the EPBD so all solutions can play their part
• Ramp up biomethane production through legally binding targets to ensure there is enough to contribute to an affordable reduction of emissions
• Accelerate the transposition of the Gas Directive and encourage the introduction of green gas contracts and biomethane purchase agreements
• Coordinate between national, regional and local decision makers to define the most efficient heating solutions
• Take into account the potential, conditions and challenges of existing district heating systems to maximise efficiency

Read our full recommendations below.