Carrier and BNP Paribas Leasing Solutions have established a strategic financing agreement to lower the capital barrier to energy-efficient HVAC adoption in commercial buildings across Europe. The partnership introduces leasing and flexible financing options for Carrier's commercial customers, covering ten European markets with potential for further EU expansion.
Background
Businesses across Europe face rising energy costs, tightening regulations, and pressure to accelerate the shift toward energy-efficient, electrified systems - making flexible financing a critical enabler. The revised Energy Performance of Buildings Directive (EPBD) is a central regulatory driver: it steers fossil fuel heating toward obsolescence, with financial incentives for stand-alone gas or oil boilers phased out as of 2025 and EU lawmakers signaling a ban on new fossil-fuel heating systems by 2035 in major renovations and new buildings. Building owners who fail to act face material consequences. Forward-looking investors already worry about "stranded assets" - properties that become economically unviable due to carbon regulations and tenant ESG expectations - and a recent analysis estimates €1.5 trillion of European real estate value is at risk of devaluation without deep retrofits to meet tightening energy standards.
Despite available technologies, financing remains a persistent obstacle. Academic research indicates that the regulatory drive to accelerate clean energy and circular economy transitions in the European building stock has failed to overcome systemic implementation barriers, including high initial investment costs and misaligned financial incentives among stakeholders. CAPEX constraints and concerns about debt capacity often prevent organizations from pursuing equipment upgrades that would yield lower energy costs, a reduced carbon footprint, and improved operational resilience.
Partnership Details
The partnership between Carrier and BNP Paribas Leasing Solutions introduces leasing and financing options for Carrier's commercial customers through a multi-country arrangement. It spans major European markets - Germany, France, the United Kingdom, Spain, Portugal, Italy, Austria, Belgium, the Netherlands, and Poland - with potential to reach additional EU countries in the future.
Marc Eckerhall, Executive Director Services & Aftermarket, Climate Solutions Europe at Carrier, said: "This agreement enables Carrier to deploy advanced HVAC systems on a lease basis to our customers, accelerating adoption of more energy-efficient technologies across Europe."
Pascale Favre, Managing Director for BNP Paribas Leasing Solutions, said: "We are proud to partner with Carrier to make high-quality, energy-efficient equipment more accessible across Europe." Favre added that the arrangement "demonstrates how innovative financing can support business growth while contributing to sustainability goals."
BNP Paribas Leasing Solutions brings significant scale to the agreement. According to the company, in 2024, BNP Paribas Leasing Solutions advanced €16.3 billion in asset finance and presently manages a €40.4 billion leased asset portfolio.
Outlook
The Carrier-BNP Paribas agreement reflects a broader market trend in which manufacturers and financiers collaborate to remove the upfront cost barrier that has historically slowed commercial HVAC retrofits. Commercial applications constitute 48% of the energy retrofit systems market in 2025, with market leadership reinforced by large-scale portfolio retrofit opportunities, energy performance disclosure requirements, and rising tenant demand for high-performance workspace environments. For HVAC installers, system designers, and facility managers operating across the covered markets, lease-based procurement pathways are expected to influence project timelines and equipment specification decisions as European energy compliance deadlines approach.
