Prioritising under the decarbonisation-competitiveness plan: the case of Heat Pumps in the EU

Client/Funding Institution

Foundation for European Progressive Studies (FEPS)

Abstract

Following the recommendations in the Draghi Report, the Competitiveness Compass and the Clean Industrial Deal have put forward the decarbonisation-competitiveness plan as the EU strategy to leverage the green transition to revamp competitiveness and reindustrialise. In this context, this project delves into the heat pump value chain and examines the international and technological competitiveness, as well as the manufacturing capacity, first of the EU against other global players and then within the EU. In doing so, it analyses the components used for the production of the heat pumps and proposes and tests an analytical framework that allows for operationalising the taxonomy of industries and technologies of the Draghi report at a highly granular level. The study aims to answer the following questions: 1. Which components of a heat pump should be prioritised in the EU based on Draghi’s industry taxonomy? and 2. Which EU Member States could stand to benefit the most from the prioritisation of these parts of the value chain?

Duration

July 2025 - March 2026

wiiw team Leader

Francesca Guadagno

wiiw Staff

Corinna Covi, Ioannis Gutzianas

Countries covered: EU

Research Areas: International Trade, Competitiveness and FDI, Sectoral studies

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