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Europe needs a carbon price on heating and cooling to become carbon neutral by 2050

Ursula Von der Leyen, the President of  the European Commission, is expected to announce at least 55% target for greenhouse gas reductions in the State of the Union speech on 16 September, 2020. Heating accounts for half of the EU’s energy consumption and 80% of the heating market is dominated by fossil fuels. The fossil market benefit from direct and indirect subsidies that lock out more efficient and renewable energy technologies.

Heat pumps could be a corner stone technology on the path towards this greenhouse reduction for heating, especially if given more competitive advantages. The future positive impact of heat pumping technology is high-lighted in the flagship report, Energy Technology Perspectives 2020, released by the International Energy Agency (IEA) on September 10.

According to the ETP, a major effort to develop and deploy clean energy technologies worldwide is urgently needed to meet international energy and climate goals, particularly in order to reduce carbon emissions from areas beyond the power sector such as buildings, industry and transport. With global carbon emissions at unacceptably high levels, structural changes to the energy system are required to achieve the rapid and lasting decline in emissions called for by the world’s shared climate targets. Heating buildings is pointed out as a crucial sector in order to reach climate goals. More specifically, heat pumps are amply highlighted in the report, as a crucial part of the Sustainable Development Scenario (SDS).

Read the full ETP 2020 report here.

To speed up deployment of renewable and efficient heating technologies and thereby reduce greenhouse gas emission, the European Geothermal Energy Council proposes that Europe needs a carbon price on heating and cooling in order to give renewable energy solutions an advantage.

According to them carbon pricing covers a major policy loophole, which give fossil heating a significant competitive advantage over renewable energy solutions, particularly geothermal energy, one of the cheapest sources of heat.

Read the Press release from EGEC here.