With the adoption of the EU Climate Law in 2021, the EU has set itself a binding target to achieve climate neutrality by 2050 and to reduce greenhouse gas emissions by 55 percent compared to 1990 levels by 2030. To support the increased ambition, the EU Commission adopted proposals for revising the key directives and regulations addressing energy efficiency, renewable energies and greenhouse gas emissions in the Fit for 55 package. The heating and cooling (H&C) sector plays a key role for reaching the EU energy and climate targets. H&C accounts for about 50 percent of the final energy consumption in the EU, and the sector is largely based on fossil fuels. In 2021, the share of renewable energies in H&C reached 23%.