Social Climate Fund could deliver heat pumps to 20 million energy-poor households across Europe, new study finds

A new study finds that by investing one-third of the Social Climate Fund, the EU could subsidise up to 20 million heat pumps by 2032 — enough to reach all energy-poor households in nine EU countries and cut EU gas demand by 11%, nearly as much as the EU imported from Russia in 2024.

The EU Social Climate Fund (SCF) could be a game-changer for Europe’s heating transition, accelerating the rollout of fossil-free technologies like heat pumps and solar thermal systems.

Commissioned by the European Environmental Bureau (EEB) and carried out by LCP Delta, the study finds that one-third of the SCF alone could pay for over 20 million heat pumps. Countries like Germany, France and Poland could use their share to provide one to every energy-poor household.

However, across the EU as a whole, this funding would cover only 65% of all energy-poor households, indicating the need to tap into broader ETS2 revenues. The study estimates that if Member States combine one-third of the SCF with one-third of ETS2 revenues — expected to exceed €260 billion — they could deploy 100 million heat pumps across the EU.  This would not only shield households from fossil fuel price shocks, but also help the EU meet its climate targets for heating and cooling.

Read the full report.