Friday 15 December 2023

Update to this news item as of 4-6-2024: this conversion factor is still valid until 1 July 2025 and only in case of calculation with environmental declarations that still use the (old) A1-set environmental impact categories. Thus, the settlement factor does not apply when using A2 declarations. When switching to A2-set calculations, the environmental declarations must be used without the settlement factor.

As previously announced, the settlement factor for the environmental performance of heat pumps will cease in its current form on December 31, 2023. In recent months, the environmental declarations for heat pumps have been updated, making the settlement factor unnecessary for the majority of situations. 

Limited settlement factor from Jan. 1, 2024 to Jan. 1, 2025

A limited settlement factor applies instead for small heat pumps with a capacity not exceeding 4.0 kW for new construction projects. This limited settlement factor remains necessary to meet the statutory environmental performance requirement of 0.8 for small homes and housing units (such as chalets and tiny houses). The BMNL (Beleidscommissie Milieuprestatie Nederland) recently agreed to this limited settlement factor. The factor is temporary and will end December 31, 2024.

The changes as of January 1, 2024.

Specifically, as of Jan. 1, 2024: 

  • The generic settlement factor may no longer be used
  • The limited settlement factor will only be included in the environmental declarations of heat pumps with a capacity of up to 4.0 kW
  • The limited settlement factor only applies to new construction projects
  • Only one settlement factor may be used per home on a heat pump up to 4.0 kW regardless of the number of heat pumps used
  • The scale limit for scalable environmental declaration for heat pumps to which the settlement factor applies is set at 4.0 kW
  • Environmental data as retrieved by the calculation tools, (where applicable) include the environmental impact including the settlement factor, both in categories 1, 2 and 3
  • NMD's application of the settlement factor will be clearly disclosed on the environmental declaration

Heat pumps in smaller homes and housing units

The above measure should lead to maximum sustainability in the construction of smaller homes and housing units as well. In order to monitor whether the measure contributes permanently to the objective, the BMNL (in consultation with FME, Techniek Nederland and the Heat Pump Association) will also be periodically informed of developments.


After it was previously found that the ECI (environmental cost indicator) of heat pumps was much higher than initially assumed, a temporary “ settlement factor” was introduced by the NMD Foundation, in consultation with the Ministry of the Interior and industry organizations FME and Techniek Nederland and the Association of Heat Pumps.

Since then, the industry has provided new environmental data for different types and variants of heat pumps. This made much more information available about the environmental impact (of the components) of different types of heat pumps.

The Ministry of the Interior and Kingdom Relations, in consultation with the NMD Foundation and the aforementioned industry associations and supported by LBP|SIGHT, has developed a proposal in which the settlement factor is partly maintained but is used much more selectively for only those situations in which the environmental performance requirement of 0.8 cannot be achieved without a settlement factor. The basis of the insight that the offsetting factor is still only needed to a limited extent lies in the correct combination of the energy concepts for the BENG that are also included in the MPG.

Also read the frequently asked questions about heat pump