Emissions reduction policy for heat has historically been lacking. The focus has been mainly on adding insulation in buildings and replacing old oil systems, which have only a marginal effect on the carbon intensity of the heat sector. However, we see momentum shifting as governments step up spending commitments on clean technologies over the next decade.
The EU Net-Zero Industry Act recognises heat pumps as a strategic low carbon technology. The Inflation Reduction Act is bringing heat decarbonisation up the agenda in the US, with large subsidies available for household purchases of heat pumps. And China’s Clean Winter Heating Plan calls for large-scale renewable energy deployment in clean heating, better building energy efficiency, and more renewable energy resources contributing to clean heating.