The report prepared by LCP Delta for the Cool Heating Coalition analyses the financial challenges associated with the decarbonisation of residential heating and cooling across Europe. The study examines seven Member States — Czechia, France, Germany, Italy, the Netherlands, Poland and Spain — and concludes that the transition towards clean and efficient systems will require a stable combination of public support and private financing to overcome the high upfront costs of technologies such as heat pumps and district heating networks.

The report highlights that, although installation costs remain a significant barrier for many households, renewable technologies can generate substantial long-term savings thanks to lower operating costs and greater energy efficiency. It also points out that the EU already has instruments capable of supporting this transition, ranging from ETS2 revenues to the reallocation of fossil fuel subsidies and the growing green bond market.