EU expands state aid rules to support heat pump manufacturing

The EU has recently revised its rules on which sectors are eligible for government funding and how to implement the Clean Industrial Deal.

The European Commission has updated its State Aid Framework, providing broader funding opportunities for the heat pump sector. The revised rules aim to help Member States support clean technologies under the Clean Industrial Deal.

Under the new guidelines, heat pump manufacturing and the production of key components are now eligible for public funding. Industrial heat pumps are explicitly listed among the supported technologies, recognizing their role in reducing emissions and improving energy efficiency.

The changes allow EU Member States more flexibility in directing public resources to strategic decarbonisation sectors. Governments are encouraged to align national support schemes with the updated framework to advance energy security and clean technology deployment.