Fossil fuel-powered boilers will be phased out in a “gradual manner” by 2040 if a European Parliament and European Council provisional agreement reached yesterday is formally adopted.

The European Commission said if the agreement is formally supported, fossil fuel boiler installation subsidies will also cease by 2025 and publicly owned buildings will need to produce zero on-site emissions by 2028, with every other type of building expected to reach zero on-site emissions by 2030.

Brussels-based heat pump association EHPA – which calls for heat pumps to be the “number one” heating and cooling choice by 2030 – supports the announcement.

“Setting a date for ending fossil fuel heating in Europe’s buildings provides crucial clarity for consumers and charts the path for the heating sector. It makes any investment in heat pump solutions a future-proof choice,” EHPA Secretary General Thomas Nowak said.

“Thousands of jobs” will be created in Europe if the policy is formally adopted by the European Parliament and European Council, he said.

Member States will be responsible for establishing laws to support the Energy Performance of Buildings Directive, according to the European Commission.

European Council Commissioner for Climate Action, Wopke Hoekstra, said the technology already exists to heat and cool buildings in an environmentally friendly manner but there needs to be a “stronger business case” to boost aging infrastructure renovations. The directive aims to do this and “mobilize additional finance and boost construction value chains,” he said.

The Energy Performance of Buildings Directive aims to support the European Union’s efforts to decarbonize infrastructure, with buildings responsible for 40% of the region’s energy demands.

The European Commission said the directive also includes a clause about ensuring buildings are solar-ready from 2027 as the technology will become the “norm.”