New “Energy Transition in Europe for Europe” Alliance: Domestic Industry to Benefit Heating Subsidy Reform
The newly formed alliance ‘Energy Transition in Europe for Europe’ – a coalition of leading European manufacturers of heating and climate solutions – is calling for a strategic reorientation in the debate on the redesign of the Federal Funding for Efficient Buildings (BEG) program. Public funds for the heating transition should be used specifically to strengthen European production and value creation.
Heating subsidy reform must secure European value creation and jobs to combine climate targets and competitiveness
Allendorf (Eder), Germany, Nov. 20, 2025 – In light of the ongoing debate on the redesign of federal subsidies for efficient buildings (BEG), the newly-formed “Energy Transition in Europe for Europe” is making an urgent appeal to the German government. The alliance of leading European manufacturers of climate and heating solutions is calling for a strategic realignment: public funds for the heating transition must be used in a targeted manner to strengthen European production and value creation.
The alliance emphasizes that linking industrial policy, energy security, and climate responsibility must be at the heart of European competition policy. The industry is ready to shape the transformation as a job engine for the EU.
“We have invested billions of euros in production, research and development, and upskilling – we are ready,” said alliance representatives. “The redesign of subsidies should help to decisively seize the opportunities for Germany and the EU as industrial locations.”
Reinvesting public funds in domestic value creation
The alliance suggests linking the allocation of subsidies to criteria that favor European manufacturing. It is “not protectionism, but common sense” that public funds derived from CO2 pricing and taxes should be reinvested in domestic value creation and jobs.
“To do this, we need balanced, effective criteria ‘made in the EU’,” the joint appeal states.
Specific proposals for heating subsidies in 2026/2027
In order to accelerate the heating transition while securing the industrial base in Europe, the alliance is addressing three specific proposals to the federal government:
- Stable subsidy conditions: Private households need reliable and stable subsidy conditions for 2026 and 2027 in order to be able to invest in sustainable heating systems (especially heat pumps).
- Realizing economies of scale: Trade and industry need planning security in order to further increase heat pump sales towards the long-term average of gas boilers. This is the only way to achieve the necessary economies of scale and reduce the costs of the technology in the long term.
- Prioritize European manufacturing: Subsidies should be used consistently to support heat pumps manufactured in Europe, in order to directly promote domestic value creation and jobs.
Framework conditions: ETS 2 and electricity prices as key levers
Beyond subsidies, the alliance is calling for further decisive framework conditions. In addition to reliable national and European building legislation, attractive and competitive electricity prices are central to the success of the heating transition.
In addition, the industry must be able to rely on the European Emissions Trading System for buildings and transport (ETS 2) starting as planned on Jan.1, 2028, in order to create fair competitive conditions for climate-responsible technologies.
“With these framework conditions, we can leverage the European market potential and generate sufficient financial resources for further investments in future technologies through the size of the market,” the alliance representatives continued.
The initiative concludes with a call for cooperation: “The energy transition in Europe is up to us. 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.”
About the “Energy Transition in Europe for Europe” Alliance
The “Energy Transition in Europe for Europe” alliance is a coalition of leading European climate and heating solutions manufacturers. Together, the companies are committed to an ambitious and sustainable climate policy that strengthens Europe as an industrial location and secures the EU’s critical role of providing key technologies including heat pumps.
About Viessmann Climate Solutions
Founded in 1917 as a heating technology manufacturer, today Viessmann Climate Solutions is a leading global provider of sustainable climate (heating, cooling, water and air quality) and renewable energy solutions. The Integrated Viessmann Climate Solutions portfolio seamlessly connects products and systems via digital platforms and services, creating an individualized feel-good climate for users. Viessmann Climate Solutions is part of Carrier Global Corporation, global leader in intelligent climate and energy solutions that matter for people and our planet for generations to come. For more information, visit https://www.viessmann-climatesolutions.com/en.html.
Press Contact
Jörg Schmidt
Viessmann Holding International GmbH
Viessmannstraße 1, 35108 Allendorf (Eder)
Phone: +49 151 15168389, E-Mail: joerg.schmidt1@carrier.com
