As the European Commission considers the introduction of a market-based instrument on clean heat deployment, RAP experts Richard Lowes and Marion Santini take a closer look at the UK Clean Heat Market Mechanism (CHMM), introduced in 2025.

This UK policy is still young, but it is already possible to make a few observations which may be useful in an EU context:

• The policy places an obligation on fossil fuel boiler manufacturers to support heat pump deployment.
• The clean heat market mechanism is part of a package of policy measures to support heat pump uptake.
• The UK instrument is focused on air-to-water heat pumps but other designs are possible.
• Longer-term outlooks would provide greater certainty for manufacturers and investors but regular review increases acceptability within the industry.