Media release: New report finds Australia can unlock huge bill and emissions savings with efficient electrification 22 February 2023

A new report from the Energy Efficiency Council (EEC) and the Australian Alliance for Energy Productivity (A2EP) has found that heat pumps – a cornerstone of electrification policies in Europe and the US – could cut Australian energy bills and deliver a massive 747 million tonnes of carbon dioxide equivalent (MtCO2e) of emissions reductions between now and 2050.

Heat pumps are a super-efficient technology for heating and cooling that can be powered by renewable electricity. Some types of heat pumps are common in Australia; such as fridges and reverse cycle air conditioners. But across the globe, efforts to decarbonise buildings and industry are seeing this trusty technology deployed for a much wider range of applications, from domestic hot water to industrial heating processes.

The report – the first that estimates the energy and emissions savings that could be delivered in Australia through rapid adoption of heat pump technology – finds the combined emissions reduction potential of heat pumps in buildings and industry over the next three decades is 747 MtCO2e, or about one and a half years of Australia’s total current emissions.

Off the back of this research, the EEC and A2EP are calling on governments to take a range of actions to accelerate heat pump adoption, including:

  • Supporting vulnerable households to cut their energy bills by switching to high efficiency heat pumps; and
  • Funding a major new ARENA program to pilot and demonstrate heat pump retrofit projects in manufacturers, food processors and large commercial buildings.

“Because they are super-efficient and can be powered directly by renewable electricity, heat pumps are being embraced right around the world. They are the perfect partner for Australia’s plentiful renewable energy resources – we have ground to make up, but we can realise their full potential if we act now”, said Energy Efficiency Council CEO Luke Menzel.

“Industry now has a clear signal to decarbonise its emissions. Heat pumps can make a significant contribution to this enormous task, particularly with further efforts in research and development”, said Australian Alliance for Energy Productivity CEO Jarrod Leak. 

Access Harnessing heat pumps for net zero: The role of heat pumps in saving energy and cutting emissions.



Tim Fisher, Head of Engagement
0414 893 313