GCP Europe’s take on the EU Multiannual Financial Framework 2028–2034
On 20 June 2025, the European Commission unveiled a proposal for the next Multiannual Financial Framework (MFF) — the EU’s long-term budget covering the period 2028 to 2034. With an unprecedented €2 trillion envelope, this budget has the potential to reshape the trajectory of Europe’s climate, industrial, and social policy for the next decade.
For GCP Europe, the proposal sends a strong signal that the EU remains committed to its long-term ambition of climate neutrality, while simultaneously addressing affordability, competitiveness, and resilience. It also provides a crucial window to support the work of building engineers, SMEs, and installers across Europe who are delivering practical solutions on the ground.
Why the MFF matters for the HVAC and building services sector
Europe’s HVAC industry — encompassing mechanical contractors, system designers, and skilled technicians — is at the heart of the transition to decarbonised and resilient buildings. The MFF is more than a financial package: it is the strategic framework that will define what gets funded, prioritised, and incentivised across EU Member States.
Here’s why it’s so relevant:
- It underpins national recovery and structural funds, setting the tone for what’s eligible under regional programmes
- It allocates billions to key initiatives like the Social Climate Fund (SCF), InvestEU, cohesion policy, and the Innovation Fund
- It includes climate mainstreaming targets, meaning a share of all spending must deliver on climate and energy objectives
- It influences the future of the EU Green Deal, the Renovation Wave, and the Clean Heat Market
In short, the MFF is the financial architecture for what our members want to achieve: more renovation, cleaner energy, and upskilled professionals in every country.
Key budget lines GCP Europe is watching
1. Social Climate Fund (€86 billion)
The SCF remains the flagship budget line for a fair green transition, particularly as the EU Emissions Trading System (ETS 2) is extended to buildings and road transport in 2027.
GCP Europe welcomes:
- The ringfencing of funds for vulnerable households
- The flexibility for Member States to design national measures for heating and renovation
- The integration of heat pumps, hybrid systems, and energy performance upgrades in eligible actions
But GCP Europe also calls for:
- Clear earmarking for installer support and upskilling
- Greater transparency and consistency in how funds reach end users
- Fast-track procedures to avoid delays in building-level deployment
2. Cohesion Policy & Regional Funds
These funds remain essential to support rural and disadvantaged areas, often where skilled professionals are lacking. In the 2028–2034 cycle, cohesion funds are expected to:
- Continue funding public and private building renovation
- Strengthen SME access to clean tech investments
- Support training centres and Vocational Education and Training (VET)
GCP Europe recommends:
- Strengthening links between regional innovation hubs and HVAC professionals
- Prioritising energy performance contracting, low-carbon materials, and system efficiency
- Simplifying access for micro and small enterprises in the construction ecosystem
3. InvestEU and the Innovation Fund
These tools are expected to:
- Provide de-risking mechanisms for green investments
- Back aggregators and one-stop-shops in renovation and clean heating
- Fund the scale-up of climate-friendly HVAC technologies
We urge InvestEU to:
- Prioritise building services SMEs as beneficiaries
- Include performance-based financing for clean heating upgrades
- Support innovations that combine indoor environmental quality (IEQ) and energy performance
The long view: What climate mainstreaming means
The Commission has reaffirmed that 30% of the total MFF must contribute to climate goals. This climate mainstreaming target applies to:
- Structural funds
- Agricultural policy
- Horizon Europe
- External spending
GCP Europe believes that:
- A significant share should target the built environment, which accounts for over 40% of final energy use
- HVAC installations and renovation actions must be clearly tracked under climate markers
- Climate mainstreaming should also address health, comfort, and resilience — not just emissions
We also support synergies between climate and digital mainstreaming, notably for:
- Smart HVAC systems
- Building automation
- Digital twins for renovation strategies
What’s missing or at risk?
While the MFF proposal shows strong ambition, GCP Europe highlights areas where further clarity or reinforcement is needed:
- Installer Skills Pipeline: No dedicated skills envelope is foreseen for the HVAC sector. We call for a cross-cutting action to ensure the industry has the workforce to deliver the Renovation Wave and electrification agenda.
- IEQ and Co-benefits: Indoor Environmental Quality (IEQ) still lacks visibility. We urge the Commission to reflect co-benefits such as air quality, comfort, and health resilience in the eligibility criteria.
- Administrative simplification: Smaller contractors often struggle to access funding due to complexity. One-stop-shops and intermediary schemes must be part of national planning.
- Private sector involvement: The role of energy service companies, aggregators, and contractors needs clearer recognition in implementation guidelines.
What GCP Europe calls for
To ensure the MFF becomes a tool for climate delivery and industrial leadership, GCP Europe urges the EU institutions and national governments to:
- Secure strong support for SCF implementation, with clear guidelines for heating system upgrades and renovation packages that include HVAC solutions.
- Design workforce programmes that upskill and attract new talent to the HVAC profession.
- Simplify access to funds for small contractors, through administrative relief, digital support tools, and aggregation.
- Include HVAC and technical building systems in the core climate tracking tools and taxonomy.
- Link MFF governance with ETS 2 and the National Building Renovation Plans, to ensure a coherent and ambitious funding approach.
What happens next?
The Commission proposal will now go through:
- Discussions in the Council of the EU (Member States)
- Negotiations with the European Parliament
- Likely approval by mid-2026 to allow for implementation by 1 January 2028
GCP Europe will:
- Monitor each step of the negotiation
- Provide input on sector-specific concerns
- Support our members in engaging at national level to shape operational programmes
In conclusion: A historic opportunity
The MFF 2028–2034 is more than a financial plan — it is the roadmap that will shape the skills, tools, and systems that Europe’s professionals will use to decarbonise buildings.
GCP Europe fully supports the Commission’s ambition and will work to ensure:
- Funding reaches where it’s needed most
- Installers and engineers are empowered
- Clean heating and renovation accelerate — across every corner of Europe