Strengthening national frameworks for renewable and efficient heating and cooling in existing buildings

Opened

Programme Category

EU Competitive Programmes

Programme Name

LIFE: Environment & Climate Action

Programme Description

The LIFE Programme is the EU’s funding instrument for the environment and climate action. The general objective of LIFE is to contribute to the implementation, updating and development of EU environmental and climate policy and legislation by co-financing projects with European added value. After 22 years, €3.4 billion and 4.170 projects, the LIFE Programme continues to finance actions for the environment and climate action.

Programme Details

Identifier Code

LIFE-2026-CET-RENEWHC

Call

Strengthening national frameworks for renewable and efficient heating and cooling in existing buildings

Summary

The topic aims to support the creation of national collaborative platforms that help accelerate the large-scale deployment of on-site heat pumps and solar thermal systems in existing buildings, including combinations with photovoltaic or photovoltaic-thermal systems.

Its main objective is to identify, assess and address regulatory, financial and market barriers that prevent the wider uptake of alternative business models, such as heating-as-a-service, leasing, all-in offers, community financing and aggregator-based models. These barriers may relate to permitting, building and rental rules, third-party ownership, service agreements, demand-response participation and the price balance between electricity and gas.

Proposals should focus on up to three to five national markets and strengthen the capacity of public authorities and relevant stakeholders to improve national and local frameworks. The topic also supports EU energy and climate goals by promoting cleaner heating and cooling, strengthening the EU supply chain, improving energy system resilience and reducing dependence on fossil fuels.

Detailed Call Description

Building on the work and lessons learned from on-going LIFE CET projects and other initiatives, proposals shall target three to five LIFE eligible countries (for a single proposal) to establish or adapt existing national platforms/fora of key relevant stakeholders to:

  • Assess in detail for each target country the barriers and enabling conditions for the uptake of alternative business models and financing schemes for on-site heat pumps and solar thermal systems, including hybrid systems, in buildings;
  • Scope, assess and model for each target country the impact of specific regulatory and non-regulatory options to address the identified barriers;
  • Assess options for
    • attracting a broader range of economic actors to deploy heat pumps, solar thermal and PVT and offer new business models;
    • adapting public incentives to alternative business models;
    • updating existing and creating new tools to enhance cost transparency and competition;
    • creating marketplaces and alliances that increase market transparency and facilitate decision making by consumers and support installers in view of improving consumer offers.

Proposals shall describe how they intend to organise the national platforms to achieve the above and are encouraged to start and monitor the first phase of implementation of selected measures within the duration of the action.

Proposals shall provide a clear and detailed overview of the state of play in each target market, the uptake level of the alternative financing schemes and the business models they intend to address and the barriers to be tackled.

The addressed business models and financing schemes should focus on the supply of at least space heating; however, this does not preclude considering additional services such as water heating and space cooling, including free cooling. For heat pumps specifically, actions may also address the unfavourable electricity-to-gas price ratio. On the other hand, business models and financing schemes for new heating and cooling networks, including small-scale networks, are out of scope.

Call Total Budget

€6.500.000

Financing percentage by EU or other bodies / Level of Subsidy or Loan

95% (Other Action Grants)

Thematic Categories

  • Economy-Finances
  • Energy
  • Environment and Climate Change
  • Industry
  • Public Administration
  • Research, Technological Development and Innovation
  • Small-Medium Enterprises and Competitiveness
  • Urban Development

Eligibility for Participation

  • Associations
  • Businesses
  • Central Government
  • Chambers
  • Consumer Organisations
  • Financial Institutions
  • Investment Funds
  • Large Enterprises
  • Legal Entities
  • Local Authorities
  • Private Bodies
  • Researchers/Research Centers/Institutions
  • Semi-governmental organisations
  • Services Providers
  • Small and Medium Enterprises (SMEs)
  • State-owned Enterprises

Eligibility For Participation Notes

In order to be eligible, the applicants (beneficiaries and affiliated entities) must:

  • be legal entities (public or private bodies)
  • be established in one of the eligible countries, i.e.:
    • EU Member States (including overseas countries and territories (OCTs))
    • non-EU countries:
      • listed EEA countries and countries associated to the LIFE Programme
  • the coordinator must be established in an eligible country

Beneficiaries and affiliated entities must register in the Participant Register — before submitting the proposal — and will have to be validated by the Central Validation Service (REA Validation). For the validation, they will be requested to upload documents showing legal status and origin.

Other entities may participate in other consortium roles, such as associated partners, subcontractors, third parties giving in-kind contributions, etc (see section 13 of the Call Document).

The national collaborative platforms should include market players such as heating systems providers and installers, investors and economic actors, the financing community, utilities, consumer associations, and relevant competent national or regional public authorities (e.g. from different relevant ministries), regulators, energy suppliers and distribution system operators. Proposals shall demonstrate at the proposal stage the interest and nature of commitment from the above-mentioned actors, either through direct participation in the consortium or through tailored and detailed letters of support. The latter should also clearly specify for authorities their competence in the matter.

Proposals should collaborate and/or provide input, where relevant, to the national hubs of the European Energy Efficiency Financing Coalition, or other relevant working groups on sustainable finance.

Call Opening Date

21/04/2026

Call Closing Date

16/09/2026

National Contact Point(s)

Department of Environment

Ministry of Agriculture, Rural Development and Environment
www.lifecyclamen.com.cy

Persons to Contact 
Marilena Papastavrou
Environment Officer, National Contact Point for Environment
Telephone: +357 22 408 926
Email: mpapastavrou@environment.moa.gov.cy

Chrystalla Papastavrou
Environment Officer, National Contact Point for Climate
Telephone: +357 22 408 962
Email: cpapastavrou@environment.moa.gov.cy

EU Contact Point