Accelerating Industrial Heat Electrification in Europe: Barriers and Policy Recommendations to Heat Pump Adoption
Accelerating the electrification of industrial energy use is essential for achieving net-zero climate goals, given its significant potential to decarbonize energy consumption and enhance efficiency, particularly in process heating. Mature electrification solutions, such as industrial heat pumps and resistive heating systems, are already available. Advanced solutions for very high temperatures have existed for decades, with innovations emerging regularly. Despite these technological advancements, the industrial sector remains hesitant to adopt electrification. It is hindered by several persistent barriers, including economic constraints, technical limitations, knowledge gaps, and insufficient infrastructure. This paper examines the current landscape of industrial electrification policies in Europe, with a focus on industrial heat pumps. It categorizes policy instruments and assesses their implementation at the EU level and in 10 selected countries: Austria, Belgium, the Czech Republic, Denmark, Finland, Germany, Italy, the Netherlands, Switzerland, and the UK. To supplement the policy review, a survey was conducted with national experts from each country to evaluate the effectiveness of existing policy instruments supporting industrial electrification. Findings reveal that regulatory frameworks are often inadequate, and electrification continues to receive low priority among policymakers. While a few countries have emerged as leaders with comprehensive and innovative policy approaches, most still lack the robust policy frameworks necessary to drive meaningful change. Addressing these policy gaps is vital for accelerating industrial decarbonization. A well-coordinated and ambitious policy approach is essential at both the EU and national levels. Only an integrated set of policies – including strong carbon pricing, clearly defined electrification targets, and fossil fuel phase-out timelines – can achieve the scale and speed of transformation needed to meet Europe’s climate and energy goals.