EU Drops 2029 Gas Boilers Ban but Ends Incentives from 2025 in Shift Toward Cleaner Heating

The European Commission is reformulating its home heating strategy: no longer banning the sale of gas boilers in 2029, but ending incentives from 2025 to shift the market toward more sustainable solutions.

A significant regulatory shift by the European Commission is redefining the heating market in Europe: although the feared marketing ban on traditional gas boilers, initially scheduled for 2029, has been completely withdrawn, consumers and investors must prepare for the rapid elimination of financial incentives for purchasing gas boilers.

The Commission has launched a consultation on a new proposal to revise Regulation 813/2013/EU on Ecodesign. This current draft has removed any reference to a complete ban on traditional boilers, contradicting the preliminary version circulated in spring 2023, which established a marketing ban starting in 2029.

Brussels pivots from outright bans to incentive-driven policies, aiming to phase out gas boilers by 2040

Despite this regulatory relaxation, the long-term strategic goal remains unchanged: to phase out gas boilers by 2040, as set out in the Energy Performance of Buildings Directive (EPBD), commonly referred to as the “green homes” directive.

What’s changing, therefore, is the method for achieving this goal. It will no longer be a strict regulatory constraint, but will be pursued through national policies and, above all, through incentives.

The most financially significant point is that, while gas boilers can still be sold and placed on the market, they will no longer be supported by purchase subsidies. The EPBD directive, in fact, introduces a constraint that, starting in 2025, will prevent Member States from providing incentives for the purchase of modern boilers. Consequently, the focus of incentives will shift, focusing on the decommissioning of older systems rather than supporting the purchase of new units.

The legislative procedure is ongoing, and the public consultation will end on December 26th. From that date, the European Commission will consult member states on the final drafts and the comments received. The final regulations will be adopted and published in the Official Journal of the EU, unless the European Parliament and the Council raise objections during the examination phase.

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(Featured image by Myko Makhlai via Unsplash)

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