EU Heating Manufacturers Push for German Subsidy Reform

Push for German Subsidy Reform

Germany: A new alliance of major European heating and climate technology manufacturers has jointly urged Germany to ensure that the upcoming push for subsidy reform of its Federal Funding for Efficient Buildings (BEG) strengthens domestic value creation. The coalition comprising Viessmann Climate Solutions, Bosch Home Comfort Group, Vaillant Group, and Stiebel Eltron from Germany; BDR Thermea Group from the Netherlands; Ariston Group from Italy; and Glen Dimplex Group from Ireland argues that public subsidies generated through CO₂ pricing and taxation must be reinvested into local production, employment, and the strategic alignment of industrial policy, energy security, and climate targets. Strengthening Europe’s competitiveness in key clean-tech segments, especially heat pumps, is a core objective of the group.

To support the 2026/2027 subsidy framework, the alliance has recommended three key measures: stable, long-term conditions for private households to invest in sustainable heating technologies; planning and investment security for manufacturers to scale up heat pump production and reduce costs; and continued financial support for products manufactured within Europe. Beyond subsidies, the coalition is calling for a broader supportive environment including competitive electricity prices and the timely rollout of the EU Emissions Trading System for buildings and transport (ETS 2) from January 1, 2028. They stress that only a coordinated industrial and energy strategy will ensure Europe’s leadership in the climate transition and safeguard domestic manufacturing in the face of global competition.

Source: Refindustry