Electrification Action Plan: What it means for HVAC

Summary

Published on 17^th July 2026, the European Commission's Electrification Action Plan aims to accelerate the transition from fossil fuels to clean electricity across Europe's economy. The plan supports the EU's objective of increasing electricity's share of final energy consumption from around 23% to 32% by 2030, with an indicative target of 46% by 2040. The Commission considers electrification essential for reducing carbon emissions, strengthening energy security, improving competitiveness, and lowering dependence on imported fossil fuels.

For the Heating, Ventilation and Air Conditioning (HVAC) sector, the implications are significant. Technologies such as heat pumps, chillers, thermal storage systems, smart controls, and ventilation equipment are expected to play an important role in achieving the EU's electrification ambitions. The Action Plan also highlights the need to reduce barriers such as high electricity prices, lengthy grid connection times, and slow deployment of innovative technologies.

What is the Electrification Action Plan?

The Electrification Action Plan is a European Commission initiative designed to accelerate the shift from fossil-fuel-based energy consumption to electricity generated increasingly from renewable sources. The objective is straightforward: as Europe's electricity mix becomes cleaner, more sectors of the economy should use electricity directly rather than relying on gas, oil, or other fossil fuels.

The Commission sees electrification as one of the most effective pathways to decarbonisation. While figures show that renewable electricity already accounted for 47.5% of gross electricity consumption in the EU in 2024, electricity still represents only 23% of final energy consumption. Closing this gap is now a major policy priority.

The plan forms part of the broader Clean Industrial Deal and complements other European initiatives aimed at reducing emissions, improving energy efficiency, and strengthening industrial competitiveness.

When was it announced?

The European Commission officially published the Electrification Action Plan on 17 July 2026. The initiative follows consultations with industry stakeholders, policymakers, and civil society conducted throughout 2025, including a public consultation and dedicated stakeholder events focused on electrification and heating and cooling.

The plan establishes a reference target of 32% electrification by 2030 and proposes an indicative target of 46% by 2040, which will be considered within future Energy Union policy discussions.

Why is electrification important?

According to the Commission, electrification delivers benefits far beyond emissions reduction. The strategy is intended to improve Europe's resilience, reduce reliance on imported fossil fuels, and provide long-term economic advantages for businesses and consumers.

The Commission estimates that achieving its electrification objectives could reduce the EU's fossil fuel import bill by up to €260 billion annually by 2040.

Electrification also enables the direct use of renewable energy. Rather than generating heat through fossil-fuel combustion, technologies such as heat pumps can use electricity to move thermal energy efficiently, often delivering several units of heating or cooling from each unit of electricity consumed.

The challenge, however, is that barriers remain. The Commission notes that electricity often costs significantly more than gas in many markets, while grid connection delays and permitting constraints can slow technology deployment. The Action Plan therefore includes measures intended to improve the business case for electrified solutions.

Why does this matter for HVAC?

HVAC systems sit at the centre of Europe's electrification journey.

Heating and cooling account for a substantial share of energy consumption in buildings, and many systems across Europe still depend on fossil fuels. Replacing these technologies with efficient electric alternatives offers one of the most immediate opportunities to reduce emissions and energy consumption.

The Action Plan is highly relevant to a range of HVAC technologies, including:

Heat pumps

Heat pumps are likely to remain the flagship technology of European building electrification. Indeed, the Commission aims to increase annual heat pump installations from 2.4 million in 2025 to around 4 million by 2030. Whether deployed in residential, commercial, or industrial applications, they offer a practical pathway to replacing fossil-fuel heating systems while supporting renewable energy integration.

As policy support grows, market demand for certified and independently verified heat pump performance data will become increasingly important. Discover more in our article the difference between declared and certified heat pump data.

Chillers

In HVAC applications, modern chillers - particularly reversible units capable of both heating and cooling - can contribute significantly to building electrification strategies. As buildings move away from combustion-based heating, electrically driven systems are expected to play a larger role in delivering year-round thermal comfort.

Ventilation equipment

Efficient ventilation systems, energy recovery technologies, intelligent controls, and variable-speed fans help reduce the overall electrical demand of buildings. While electrification focuses on fuel switching, efficiency remains critical to ensuring that electricity demand grows sustainably.

Smart controls

The Action Plan places considerable emphasis on flexibility within the electricity system. Similar to the Commission's discussion of smart EV charging, buildings will increasingly be expected to interact dynamically with the electricity grid.

This creates growing opportunities for:

• Demand-response technologies
• Smart building controls
• Thermal energy storage
• Grid-interactive HVAC systems
• Building energy management systems.

Together, these technologies can reduce peak demand, improve renewable energy utilisation, and support more resilient energy networks.

Industrial refrigeration and process cooling are already electrified – so what changes?

Unlike heating, most commercial refrigeration, industrial refrigeration, and process cooling applications are already electrically driven. Therefore, the electrification challenge is not about replacing fossil fuels with electricity, but about making existing electrical loads:

• More efficient
• More flexible
• Better integrated with renewable energy
• Less carbon intensive across their lifecycle.

This aligns closely with the Action Plan's focus on reducing overall energy costs, improving competitiveness, and increasing flexibility within energy systems.

What does this mean for HVAC manufacturers?

For HVAC manufacturers, the Electrification Action Plan sends a clear market signal.

Demand for high-performance electric heating and cooling technologies is expected to increase as policymakers seek ways to achieve electrification targets. Manufacturers that can demonstrate efficiency, reliability, environmental performance, and transparent product data will be well placed to benefit.

This is where certification and independently verified performance data become increasingly valuable. As electrification accelerates, decision-makers will require trusted information to compare technologies, optimise system design, and ensure policy objectives translate into real-world energy savings.

Frequently Asked Questions

Will the Electrification Action Plan make heat pumps mandatory?

No. The Action Plan promotes electrification and highlights heat pumps as a key technology, but the Commission does not state that heat pumps will become mandatory. Rather, it seeks to encourage the uptake of cleaner electricity-based technologies.

Does electrification only affect residential buildings?

No. The Action Plan covers multiple sectors, including buildings, transportation, and industry. Commercial and industrial HVAC systems therefore have an important role to play in achieving the EU's objectives.

Is electrification only about replacing fossil fuels?

No. Electrification is also about improving system efficiency, integrating renewable energy, increasing flexibility, and enabling smarter interactions between buildings, equipment, and the electricity grid.

Looking ahead

The Electrification Action Plan marks a significant step in Europe's energy transition. While challenges remain around electricity costs, infrastructure, and deployment speed, the direction of travel is clear: electricity will play an increasingly central role in heating, cooling, transportation, and industry.

For the HVAC sector, this creates both responsibility and opportunity. Heat pumps, chillers, ventilation systems, controls, and other electric technologies will be instrumental in delivering the efficient, flexible, low-carbon buildings that Europe's future energy system requires. As electrification moves from policy ambition to practical implementation, the importance of trusted performance data and independent certification will only continue to grow.

A wide range of independently verified, energy efficient HVAC and Refrigeration technologies can be found in Eurovent Certification’s Certified Product Directory.

Search for certified products now