Graphic: Policy package approach to strengthening adoption of heat pumps in the buildings sector

Heat Pumps Policy Package for Buildings


Immediate opportunities
The expansion of heat pump manufacturing and installations has the potential to reduce CO2 emissions, improve air quality, and generate employment

In the Announced Pledges Scenario for 2050 in China, decentralised heat pumps meet 25% of space heating needs in buildings

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Incorporate favourable policies for heat pumps and other clean heating solutions into medium- and long-term targets and roadmaps

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Regulation

  • Introduce stringent Minimum Energy Performance Standards (MEPS) to ensure that heating solutions including heat pumps adhere to high-efficiency requirements
  • Mandate that new heat pumps are equipped with connected controls, providing flexibility to end-users and the overall energy system, contributing to reducing peak demand
  • Establish regulations, including building codes, facilitating the integration of heat pumps. This includes adjustments related to thermal performance, and building permissions, as well as refining decision-making protocols in multi-owner buildings
  • Introduce long-term policy support and regulatory certainty with transparency on upcoming changes and providing opportunities for industry input

Information

  • Harmonise labels to inform consumers about the energy efficiency of heating solutions
  • Promote consumer information campaigns, informed by behavioural insights, to empower individuals to make informed decisions
  • Create one‐stop‐shop platforms for supporting consumers in the uptake of heating equipment
  • Promote upskilling through accreditation for heat pump specialists and integration ofheat pump content into educational curricula at all levels
  • Provide criteria to define clean heat and improve heat pumps market data collection and data accessibility to inform policy decision-making

Incentives

  • Introduce rebates, grants and other financial offers to motivate consumers to buy highly efficient heat pumps
  • Introduce finance or taxation benefits to encourage manufacturers to scale up heat pump production.
  • Establish well-designed procurement processes to increase market share of heat pumps and drive innovation
  • Adjust the price of electricity to make the operating costs of heat pumps more favourable
  • Offer dynamic electricity pricing to help incentivise flexible demand and new business models