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REGULATORY ASSISTANCE PROJECT THE PERFECT FIT | 9 • The requirements in the proposed revision of the EPBD for Member States to set out policies to phase out fossil fuels for heating and cooling by 2040 within their renovation plans are welcome. However, the EPBD proposals could go further so that minimum energy performance standards apply to more of the stock than just the least efficient buildings, and require more ambitious renovations. More efficient buildings can support the deployment of heat pumps and support more flexible electricity demand. Proposals for fossil fuel heating phaseouts in both new and existing buildings could also be brought in sooner. • Finally, modifications to energy labelling and ecodesign regulations for heating appliances being reviewed in parallel to the Fit for 55 package must ensure that the energy labelling classes are immediately rescaled to clearly reflect the relative efficiencies of the types of equipment on the EU market. The lowest performance appliances must be rapidly phased out of the market. A progressive tiered tightening of the minimum energy efficiency standards could lead to an effective ban on fossil fuel heating appliances, something that is needed in this revision cycle in order to avoid appliance lock-in. Member State policy reform At the Member State level, various policy and regulatory options exist to drive the deployment of heat pumps. For countries which have been most successful, there appear to be two key ingredients. Firstly, a clear strategy and policy stability is required to drive long-term investment and decision-making. Secondly, a mix of different policy measures is needed which ensure that the journey towards heat pumps is simple, provides good consumer outcomes, and develops good jobs and skills. Such a policy mix should generally include the following elements: • Pricing mechanisms to ensure heat pumps have lower total ownership costs (including running costs) than equivalent fossil fuel systems. Green heat needs to be cheaper than fossil fuel heat. • Financial support for building owners to cover additional capital costs associated with first-time heat pump installs, as well as the associated building efficiency and heating system upgrades that may be needed to make buildings ‘heat pump ready.’ • Regulatory measures such as appliance standards to drive eventual bans on fossil fuel heating.PDF Image | RAP Perfect Fit Heat Pump
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