A new alliance of leading European heating and climate technology manufacturers has launched a joint appeal for Germany’s heating subsidy reform to prioritize domestic value creation. The “Energy Transition in Europe for Europe” coalition is advocating for strategic adjustments to the Federal Funding for Efficient Buildings (BEG) to better support European-based production.
The alliance includes Viessmann Climate Solutions, Bosch Home Comfort Group, Vaillant Group, Stiebel Eltron (all Germany), BDR Thermea Group (Netherlands), Ariston Group (Italy), and Glen Dimplex Group (Ireland). Together, they argue that aligning industrial policy, energy security, and climate goals is essential to strengthening Europe’s competitiveness. Public subsidies, they state, should be reinvested into local manufacturing and employment, using funds generated from CO₂ pricing and taxation.
To ensure long-term benefits, the alliance proposes three specific measures for the upcoming 2026/2027 subsidy framework: stable conditions for private households to encourage investment in sustainable heating systems; planning security for trade and industry to scale up heat pump production and reduce costs; and consistent support for products manufactured in Europe.
The group also emphasizes the need for supportive framework conditions beyond subsidies, including competitive electricity prices and timely implementation of the EU Emissions Trading System for buildings and transport (ETS 2), scheduled for January 1, 2028.
“The energy transition in Europe is up to us,” the alliance stated. “Let’s seize this once-in-a-century opportunity together and build bridges between policy, industry, and citizens to create a funding landscape that makes the energy transition in Europe possible for Europe.”
The “Energy Transition in Europe for Europe” alliance is committed to ambitious climate policy and the continued development of Europe's role as a provider of key technologies including heat pumps.