Energy Efficiency Policy Toolkit 2025

Heat Pumps for Buildings

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.

Policy can drive increased energy efficiency related investment and stronger action from the private sector. An additional USD 1 .3 trillion every year is still needed across the transport, buildings, and industry sectors to double the rate of energy efficiency progress by 2030.

Net zero emissions pathways require a higher proportion of overall investment in energy to go to energy efficiency.




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.

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