This Eurofound research paper explores the decarbonisation of residential heating through the adoption of heat pumps, a key component in the EU’s strategy to achieve carbon neutrality by 2050. Heat pumps offer a highly efficient alternative to traditional heating systems, leveraging renewable energy sources to significantly reduce greenhouse gas emissions. Despite rapid market growth in 2022, progress stalled in 2023 due to economic factors and reduced subsidies. The Eurofound research paper highlights critical challenges, including substantial labour shortages, variation in the policy framework at national level (including incentives and supports) across Europe, the high cost of electricity relative to gas and the need to address low income and energy poverty in policy responses. Policy pointers that emerge from the study focus on expanding vocational training; standardising certification or ensuring mutual recognition of relevant qualifications; maintaining and expanding subsidies; addressing energy pricing; and increasing public awareness and guidance. Ensuring equitable access for low-income households and robust progress monitoring are also emphasised. This comprehensive approach is necessary to accelerate the deployment of heat pumps and support the EU’s ambitious climate goals.