The Austrian Biomass Association has criticised the government’s decision to suspend subsidy schemes designed to promote the shift to greener heating systems.
The organisation warned that suspending programmes like the “Renovation Bonus” and “Get Out of Oil and Gas” initiatives could hinder Austria’s heating transition. Describing the subsidies as “essential,” the association said their suspension had caused uncertainty for customers and the market.
Uncertain Future for Subsidies
Concerns have also been raised over the unclear future of the subsidies. “Given the budgetary situation and the absence of a functioning government, it remains unclear whether, when and to what extent the subsidies will be reinstated,” the statement said.
The association criticised what it described as a “stop-and-go policy,” which, it argued, prevents households from planning to upgrade their heating systems. Preliminary figures suggest that around 25,000 biomass boilers were installed in 2024 under the subsidy scheme, compared to approximately 15,000 the previous year.
Austria’s new government is likely to consist of the far-right Freedom Party (FPÖ) and the People’s Party (ÖVP), whose negotiators have already announced an austerity budget plan. This plan would cut environmental subsidies by 20% and abolish the climate bonus – a scheme designed to offset environmental damage by providing annual payments to every adult in Austria.
Call for a Clear Legal Framework
The Biomass Association has called on the incoming government to introduce a clear legal framework for Austria’s heating transition. This issue was meant to be addressed through the Renewable Heating Act, but the outgoing ÖVP-Green coalition government only agreed to a diluted version of the law in 2023.
Environmental Group Highlights Economic Impact
Environmental organisation Global 2000 has echoed the call for the reinstatement of subsidies, highlighting the economic and social benefits of continuing the schemes. In a statement, the NGO stressed the importance of renovating buildings and replacing outdated oil and gas heating systems.
“Renovating buildings and replacing oil and gas heating systems with climate-friendly alternatives can provide crucial economic stimulus while helping large sections of the population protect themselves from periods of high energy prices,” said Johannes Wahlmüller, climate and energy spokesperson for Global 2000.
