Policy & Projects

Policy & Projects

Heat pumps: realising low cost abatement in buildings and industry


The role of heat pumps in emissions reduction is an area of intense interest in countries around the world. While this project is primarily focused on the Australian market, it will identify opportunities for global collaboration that would support efforts to unlock the potential of heat pumps here in Australia. Specifically, the purpose of this project is to:

  • Build an evidence base for the role, application and potential impact of heat pumps in decarbonising Australian buildings and industry;
  • Identify opportunities and gaps to inform government policy and programs, efforts in research, development and demonstration (RD&D), standards, and workforce development required to realise the abatement opportunity of heat pumps; and
  • Inform investment opportunities in low emissions technologies.

The project is being funded by the Commonwealth Department of Industry, Science, Energy and Resources (DISER), and being jointly delivered by the Energy Efficiency Council and the Australian Alliance for Energy Productivity.

This project is focused on providing an overarching, multi-sectoral analysis of the interaction between heat pump adoption, economic sectors, policy and regulations, and goals such as emissions reduction. Specifically, the report that will be produced as part of this project will provide guidance to governments and other stakeholders on the role of heat pumps in reducing emissions.

The research and analysis will focus on heat pump applications in:

  • Residential buildings;
  • Commercial buildings;
  • Manufacturing; and
  • Agriculture.

Most of the future opportunity for heat pumps – both in terms of market growth and abatement potential – exists in these sectors, which is why these sectors have been included in the project scope.

The Energy Efficiency Council and the Australian Alliance for Energy Productivity will develop both a research report and an impact model, which will estimate the abatement potential of heat pumps in Australian buildings and industry, to the DISER in late 2021.

Any stakeholders wishing to receive updates on the project or participate in consultation may express their interest here.