A Crucial Call To Action

At Eltwin Group we want to be at the forefront of the green transition – and we hope that you will join us on that journey.

CEO Jens Ebbesen states: “Immediate action is crucial to meet the decarbonization targets for 2030 and 2050 as the latest market data for Q1 2024 reveals a concerning trend - oil and gas heating are regaining market share, surpassing green alternatives like heat pumps and district heating.

I see concerns in several areas

  • Heat pump installations have been declining for several quarters, reaching only 50% of their 2022 levels in most European markets and plummeting to as low as 20% in Denmark.

  • The European heat pump industry, having heavily invested in technology advancement and capacity expansion, now faces underutilization of its resources and supply chain due to the market shift towards fossil fuel heating.

  • China's long-term strategy, cheap financing, and incentives are increasing its presence in the European market, is a challenge to European producers and potentially leading to Chinese dominance in the heat pump market.

  • The European Heat Pump Association and European heating industry have outlined crucial steps to revitalize the green transition, including removing taxes on electricity, implementing carbon pricing on fossil fuels, establishing pan-European economic incentives to support the green industry, ensuring stable, long-term incentive plans for consumers to switch away from fossil fuels, investing in power distribution network capacity and smart grids to facilitate electrification of heating and electric vehicle adoption, and developing a skilled workforce to support decarbonization efforts.

  • A new European Parliament must prioritize the green transition and safeguard the green industry in Europe. Local governments should also remove barriers hindering the deployment of heat pumps.

Action is needed now to reverse the current trend and accelerate the transition away from fossil fuels towards a sustainable future. The above concerns underlines the urgency of addressing the challenges and implementing the necessary policies to reignite the green transition and achieve the ambitious decarbonization goals set for the future.”