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Following several years of strong growth, heat pump markets slowed in Europe in 2023.

In previous articles for Carbon Brief, we discussed this initial surge in 2021 and explored the impact of the energy crisis in 2022.

Yet, despite a drop in heat pump sales in key European regions, the trends in 2023 are more nuanced than an outright downturn.

Heat pumps generally increased their position relative to fossil heating systems and, in some of the continent’s biggest heating markets, they saw continued growth. 

If policymakers want to keep the transition to low-carbon heating on track, then thorough, consistent and coordinated policy efforts remain critical to scaling up heat pump markets. 

Heat pumps in Europe falling short of 1.5C path

In 2023, the heat pump market’s expansion in Europe hit a plateau, as shifts in policy,   changing energy prices, a stagnating economy and backlash against climate initiatives adversely affected sales in several nations. 

Across the continent, there was a general downturn in sales by about 5% compared with a year earlier, as shown in the figure below.

Heat pump sales in Europe 2013-2023, million units. The top six markets are the Netherlands, Sweden, Spain, Italy, Germany and France. “Rest of Europe” includes Austria, Belgium, Denmark, Finland, Norway, Poland, Portugal and Switzerland. Source: EHPA market statistics. Chart by Carbon Brief.
Heat pump sales in Europe 2013-2023, million units. The top six markets are the Netherlands, Sweden, Spain, Italy, Germany and France. “Rest of Europe” includes Austria, Belgium, Denmark, Finland, Norway, Poland, Portugal and Switzerland. Source: EHPA market statistics. Chart by Carbon Brief.

The impact was more pronounced in the segment of air-source heat pumps for space heating, with a 12% decrease in air-to-water and a 10% fall in air-to-air sales. 

Conversely, the segment for hot water heat pumps – those used for heating water for use in the home – saw significant growth, surging by nearly 20%.

However, while still high in historical terms, these sales are far from what is required to meet climate goals.

The EU will need around 60m heat pumps by 2030 to get on track for net-zero by 2050, according to modelling from the European Commission

The aggregated statistics presented above show that, as of the end of 2023, there were roughly 23m heat pumps across the 21 EU nations included in the data. (The figures also include, under “Rest of Europe”, three non-EU countries, the UK, Norway and Switzerland, while excluding smaller EU markets.)

This means that an average of around six million installations would be needed per year out to 2030, in order to hit the 60m milestone, whereas the current pace of growth is closer to 2.5m per year.

Trends in 2023 went in the opposite direction to what would be required. Among the countries accounting for the largest decline in sales were Italy, Finland and Poland, as shown in the figure below.

According to market statistics from the European Heat Pump Association (EHPA), Italian sales fell to around 345,000 units in 2023, compared to 514,000 the previous year, a decrease of 33%.

In Finland, some 114,000 heat pumps were sold compared to nearly 200,000 in 2022. And in Poland, the market fell to 129,000 units after reaching 208,000 in 2022.

Heat pump market trends in 2022 and 2023 by European country. Source: EHPA market statistics. Chart by Carbon Brief.
Heat pump market trends in 2022 and 2023 by European country. Source: EHPA market statistics. Chart by Carbon Brief.

While the European market contracted overall, several individual countries saw strong market growth. In Germany, sales increased by 60% year-on-year from 276,000 in 2022 to 439,000 in 2023.

In the Netherlands, 154,000 heat pumps were sold, a 53% increase on 2022 levels of roughly 100,000. Belgium experienced Europe’s largest market increase at 72%, breaking through 100,000 sales in one year for the first time.

In the UK, trade group the Heat Pump Association reported annual growth of 4% to reach more than 60,000 units sold. This data includes air-to-water and ground-source heat pumps, but does not account for air-to-air and is, therefore, incomplete. 

Heat pumps gain market share

The decrease in the European heat pump sales in 2023 is moving in the opposite direction to what would be required to meet Europe’s decarbonisation goals. Nevertheless, the overall picture is more nuanced than this contrast suggests.

For example, in certain countries where homes are predominantly heated by fossil fuels, heat pumps have continued to gain market share.

France is the leader in this regard. The market share of heat pumps has been steadily growing over the past decade, with more heat pumps sold than gas and oil boilers for the first time in 2022.

This French trend continued in 2023 – as shown in the top left corner of the figure below. Fossil fuel boiler sales fell sharply by 23%, allowing heat pumps to reach 61% of the heating market despite also seeing a small fall in sales. 

Germany (top right) has seen the heat pump market share steadily increasing year-on-year from around 10% in 2014 to 33% in 2023. Despite a booming fossil heating market, enough heat pumps were sold in 2023 that their market share continued to grow.

In Poland (centre left), although the market share of heat pumps plateaued in 2023, it has risen significantly to 40%, from just 10% in 2018. The Netherlands (bottom left) has also seen a rapid shift, with a heat pump market share of 18% in 2023, compared to just 1% in 2014.

Italy’s heat pump market share (centre right), which is more stable, contracted in 2023 after two years of growth. In the UK (bottom right), heat pumps have roughly tripled their market share in five years, but from a very low base. Excluding air-to-air heat pump sales, only around 60,000 units were sold in 2023, with a current market share of roughly 3%. 

Considering all six countries together – the largest markets for heating installations, all of which still have gas boilers as their predominant heating technology – the market share of heat pumps has tripled from around 8% in 2013 to 24% in 2023.

Market share of heat pumps (blue) compared with fossil fuel boilers (grey), %, 2014-2023, in six key European markets. Source: Heat pump sales from EHPA Market Statistics. Sales for boilers from Uniclima (France), BDH and Umweltbundesamt (Germany), SPIUG (Poland), Assotermica (Italy) and BRG (Netherlands and UK). Chart by Carbon Brief
Market share of heat pumps (blue) compared with fossil fuel boilers (grey), %, 2014-2023, in six key European markets. Source: Heat pump sales from EHPA Market Statistics. Sales for boilers from Uniclima (France), BDH and Umweltbundesamt (Germany), SPIUG (Poland), Assotermica (Italy) and BRG (Netherlands and UK). Chart by Carbon Brief.

A challenging outlook

European countries are facing diverse challenges to growing heat pump sales. The plateauing of heat pump sales in France, Europe’s largest market, is a key example of this.

On the one hand, the French government cut funding to one of the main heat pump support programmes by €1.4bn while announcing an increase in electricity tariffs. On the other, the regulator also announced a hike in gas tariffs, linking it directly to a decrease in gas consumption, among other factors, including the removal of a price cap. 

This indicates an escalating financial vulnerability for customers remaining on the gas network in France. The heating industry expects a further contraction of the boiler market in 2024, although not at the pace seen in 2022-2023.

Elsewhere, the 2022-2023 heat pump market surge in Germany is not expected to continue, RAP analysis suggests. Already in the latter half of 2023, installations had slowed compared to the previous year, as had applications for the country’s subsidy programme.

This is largely linked to Germany watering down its Building Energy Act. It remains to be seen to what extent mandatory municipal heat planning, part of the EU’s revised Energy Efficiency Directive, will drive an uptake of heat pumps in the coming years.

Poland was Europe’s fastest-growing market for heat pumps in 2022, with a 120% increase in sales in a single year. The 46% contraction of heat pump sales in 2023 was largely driven by a 40% drop in the single-family home boiler market, with total sales of fossil fuel heating systems falling in turn. As a result, heat pumps maintained their market share in 2023.

However, the unfavourable price ratio in Poland, typically more than three times as expensive for electricity as for gas, remains a key challenge. The recently elected government is considering policy reform options to address this, however.

Italy’s steep market decline, especially for air-to-water heat pumps, which fell by more than 50%, moves the country in the wrong direction for decarbonising its heating sector. The country’s 2023 heat pump sales were even lower than in 2021.

Key reasons for this include changes to the Superbonus energy efficiency support program, which lowered its reimbursement rate from 110% to 90% and a tightening of eligibility for the scheme. 

The heat pump market in the Netherlands was one of Europe’s fastest growing in 2023.

While there was a decline in sales in the country during the last quarter of 2023, due to supply chain constraints, the long-term outlook is for further growth. The market is expected to remain at similar levels throughout 2024.

 However, regulation expected to come into effect in 2026 that would have phased out installations of stand-alone fossil fuel heating systems is now expected to be scrapped. The new Dutch right-wing coalition government announced a u-turn on the policy along with a raft of other climate measures in May. 

In the UK, the heat pump market expanded slightly in 2023 compared to 2022. With around 60,000 units installed, however, it is well off the government’s target of 600,000 installations per year by 2028. 

In October, heat pump grants under the boiler upgrade scheme were increased from £5,000 to £7,500.

The government also recently confirmed that, from 2025, new homes will no longer be allowed to install fossil fuel heating systems or so-called “hydrogen-ready” boilers. This will result in a substantial market boost of more than 150,000 additional units per year, RAP analysis suggests, assuming most new homes will include heat pumps. 

However, there is continued uncertainty around the clean heat market mechanism, the main instrument expected to drive heat pump installations in existing buildings.

A one-year postponement of the scheme – which will set a rising standard for heat pumps as a proportion of fossil fuel boiler sales – was recently announced following pressure from the gas boiler industry. 

At EU level, previously strong indications of support have begun fading. The European Commission has delayed its heat pump action plan, which would have continued to lay the groundwork for the rapid expansion of the technology across the EU. 

More than 60 chief executive officers across the heat pump industry criticised the decision, warning that it risked billions of euros in investments. 

At the same time, the European Parliament and the European Council recently passed the revised Energy Performance in Buildings Directive, which will prohibit subsidies for standalone fossil fuel boilers after 2025 and aims for a full phaseout of fossil fuel boilers by 2040.

Consistent policy remains key

Heat pumps are the “central technology” for low-carbon heat and rapid growth in their market share is crucial for meeting national and international climate goals.

After expanding rapidly in 2021 and 2022, the plateau in the European heat pump market in 2023 highlights the impact of inconsistent policies in denting their long-term growth.

The variance in market performance across countries – stemming from a mix of policy shifts, funding cuts and regulatory changes – underscores the complexity of scaling heat pump technologies rapidly enough to meet Europe’s decarbonisation goals.

Nonetheless, far more heat pumps are being installed than in previous years and heat pumps are continuing to gain market share in Europe’s largest heating markets.

RAP analysis shows that consistent and forward-thinking policy packages are likely to be key to boosting this trend. Such interventions could lower the upfront cost of heat pumps and ensure their running cost competitiveness, as well as providing the industry with the market certainty necessary to spur investment, innovation and consumer confidence.

The post Guest post: Heat pumps gained European market share in 2023 despite falling sales appeared first on Carbon Brief.

Guest post: Heat pumps gained European market share in 2023 despite falling sales

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A New Tool Could Help Track Deep-Sea Mining Activity

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Countries are still debating whether to mine the seafloor for minerals, but exploratory efforts have already begun.

As demand for critical minerals surges around the world, countries are debating whether to mine the untapped deep-sea reserves of cobalt, copper and manganese, miles below the surface. But a growing body of research shows that these activities could have profound consequences for ocean ecosystems, and the industries and communities that rely on them.

A New Tool Could Help Track Deep-Sea Mining Activity

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IEA: Slow transition away from fossil fuels would cost over a million energy sector jobs

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A slower shift to clean energy could leave the world with 1.3 million fewer energy sector jobs by 2035 compared with a scenario in which governments fully implement their green policies, the International Energy Agency (IEA) has found.

In its annual World Energy Employment report, the Paris-based watchdog said on Friday that the Current Policies Scenario (CPS), which it reintroduced under pressure from the Trump administration, has “more muted” employment growth than the Stated Policies Scenario.

The CPS sees oil and gas demand continuing to rise until at least 2050 – a scenario that the IEA described as “cautious” and “anchored in enacted laws and measures” and was widely criticised by clean energy experts.

A fast energy transition would spur investment in construction, creating more jobs across the sector. New roles for electricians, building insulators, solar panel and energy-efficient lightbulb installers, and transition mineral miners would more than offset job losses in coal mines, power plants and oil and gas fields, the report found.

    Anabella Rosemberg, Just Transition lead at Climate Action Network International, lamented that the clean energy sector is “being undermined at a time when employment creation is of utmost priority”.

    “Climate ambition and decent job creation must go hand in hand – but as the recent conversations at COP30 showed, there is a need for both the right targets and just transition strategies to make it happen,” she added.

    A more ambitious Net Zero Emissions scenario, aligned with the Paris Agreement goal of limiting global warming to 1.5C, would see roughly ten million more energy jobs created than under the CPS, report author Daniel Wetzel told Climate Home News at a press conference.

    Bottleneck warnings

    The IEA warned that governments must act to train workers for these roles or risk facing shortages of electricians, welders, and grid specialists – a gap that could slow the energy transition and drive up wages and energy costs.

    IEA head Fatih Birol highlighted a particular shortage of qualified workers in the nuclear industry, warning that the problem could worsen as the sector’s workforce continues to age. “I hear nuclear is making a comeback, but the interest in the nuclear sector for the jobs is rather weak,” he said.

    Laura Cozzi, IEA’s Director of Sustainability, Technology and Outlooks, warned of a shortage of skilled workers in electricity grids. “That is one of the key ingredients why we are not seeing grids ramp up as [they] should,” she said. Over 60 governments pledged at COP29 to improve and expand their grids to enable clean electricity to flow to where it is needed.

      Bert De Wel, Global Coordinator for Climate Policy at the International Trade Union Confederation, celebrated that the energy transition is creating jobs but added that they should be good jobs with decent pay, conditions and union rights. Decent work would attract skilled workers, he added.

      The report found that wages in the oil and gas industry have generally risen faster over the past year than in the solar – and especially the wind – sectors. It noted that the oil and gas industry has a “historical tendency to offer highly competitive wages to attract and retain top talent”.

      At the COP30 climate summit, governments agreed to set up the Belém Action Mechanism to try and make the energy transition fairer to groups such as workers in the energy industry. It will give trade unions a formal role in shaping just transition policies, for what the ITUC says is the first time.

      ITUC General Secretary Luc Triangle called it a “decisive win for the union movement and working people across the world, in all sectors but especially those in transition industries.”

      The post IEA: Slow transition away from fossil fuels would cost over a million energy sector jobs appeared first on Climate Home News.

      IEA: Slow transition away from fossil fuels would cost over a million energy sector jobs

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      DeBriefed 5 December: Deadly Asia floods; Adaptation finance target examined; Global south IPCC scientists speak out

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      Welcome to Carbon Brief’s DeBriefed.
      An essential guide to the week’s key developments relating to climate change.

      This week

      Deadly floods in Asia

      MOUNTING DEVASTATION: The Associated Press reported that the death toll from catastrophic floods in south-east Asia had reached 1,500, with Indonesia, Sri Lanka and Thailand most affected and hundreds still missing. The newswire said “thousands” more face “severe” food and clean-water shortages. Heavy rains and thunderstorms are expected this weekend, it added, with “saturated soil and swollen rivers leaving communities on edge”. Earlier in the week, Bloomberg said the floods had caused “at least $20bn in losses”.

      CLIMATE CHANGE LINKS: A number of outlets have investigated the links between the floods and human-caused climate change. Agence France-Presse explained that climate change was “producing more intense rain events because a warmer atmosphere holds more moisture and warmer oceans can turbocharge storms”. Meanwhile, environmental groups told the Associated Press the situation had been exacerbated by “decades of deforestation”, which had “stripped away natural defenses that once absorbed rainfall and stabilised soil”.

      ‘NEW NORMAL’: The Associated Press quoted Malaysian researcher Dr Jemilah Mahmood saying: “South-east Asia should brace for a likely continuation and potential worsening of extreme weather in 2026 and for many years.” Al Jazeera reported that the International Federation of Red Cross and Red Crescent Societies had called for “stronger legal and policy frameworks to protect people in disasters”. The organisation’s Asia-Pacific director said the floods were a “stark reminder that climate-driven disasters are becoming the new normal”, the outlet said.

      Around the world

      • REVOKED: The UK and Netherlands withdrew $2.2bn of financial backing from a controversial liquified natural gas (LNG) project in Mozambique, Reuters reported. The Guardian noted that TotalEnergies’ “giant” project stood accused of “fuelling the climate crisis and deadly terror attacks”.
      • REVERSED: US president Donald Trump announced plans to “significantly weaken” Biden-era fuel efficiency requirements for cars, the New York Times said.
      • RESTRICTED: EU leaders agreed to ban the import of Russian gas from autumn 2027, the Financial Times reported. Meanwhile, Reuters said it is “likely” the European Commission will delay announcing a plan on auto sector climate targets next week, following pressure to “weaken” a 2035 cut-off for combustion engines.
      • RETRACTED: An influential Nature study that looked at the economic consequences of climate change has been withdrawn after “criticism from peers”, according to Bloomberg. [The research came second in Carbon Brief’s ranking of the climate papers most covered by the media in 2024.]
      • REBUKED: The federal government of Canada faced a backlash over an oil pipeline deal struck last week with the province of Alberta. CBC News noted that ​​First Nations chiefs voted “unanimously” to demand the withdrawal of the deal and Canada’s National Observer quoted author Naomi Klein as saying that the prime minister was “completely trashing Canada’s climate commitments”.
      • RESCHEDULED: The Indonesian government has cancelled plans to close a coal plant seven years early, Bloomberg reported. Meanwhile, Bloomberg separately reported that India is mulling an “unprecedented increase” in coal-power capacity that could see plants built “until at least 2047”.

      $518 billion a year

      The projected coastal flood damages for the Asia-Pacific region by 2100 if current policies continue, according to a Scientific Reports study covered this week by Carbon Brief.


      Latest climate research

      • More than 100 “climate-sensitive rivers” worldwide are experiencing “large and severe changes in streamflow volume and timing” | Environmental Research Letters
      • Africa’s forests have switched from a carbon sink into a source | Scientific Reports
      • Increasing urbanisation can “substantially intensify warming”, contributing up to 0.44C of additional temperature rise per year through 2060 | Communications Earth & Environment

      (For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Monday, Tuesday, Wednesday, Thursday and Friday.)

      Captured

      A new target for developed nations to triple adaptation finance by 2035, agreed at the COP30 climate summit, would not cover more than a third of developing countries’ estimated needs, Carbon Brief analysis showed. The chart above compares a straight line to meeting the adaptation finance target (blue), alongside an estimate of countries’ adaptation needs (grey), which was calculated using figures from the latest UN Environmental Programme adaptation gap report, based on countries’ UN climate plans (called “nationally determined contributions” or NDCs) and national adaptation plans (NAPs).

      Spotlight

      Inclusivity at the IPCC

      This week, Carbon Brief speaks to an IPCC lead author researching ways to improve the experience of global south scientists taking part in producing the UN climate body’s assessments.

      Hundreds of climate scientists from around the world met in Paris this week to start work on the Intergovernmental Panel on Climate Change’s (IPCC’s) newest set of climate reports.

      The IPCC is the UN body responsible for producing the world’s most authoritative climate science reports. Hundreds of scientists from across the globe contribute to each “assessment cycle”, which sees researchers aim to condense all published climate science over several years into three “working group” reports.

      The reports inform the decisions of governments – including at UN climate talks – as well as the public understanding of climate change.

      The experts gathering in Paris are the most diverse group ever convened by the IPCC.

      Earlier this year, Carbon Brief analysis found that – for the first time in an IPCC cycle – citizens of the global south make up 50% of authors of the three working group reports. The IPCC has celebrated this milestone, with IPCC chair Prof Jim Skea touting the seventh assessment report’s (AR7’s) “increased diversity” in August.

      But some IPCC scientists have cautioned that the growing involvement of global south scientists does not translate into an inclusive process.

      “What happens behind closed doors in these meeting rooms doesn’t necessarily mirror what the diversity numbers say,” Dr Shobha Maharaj, a Trinidadian climate scientist who is a coordinating lead author for working group two (WG2) of AR7, told Carbon Brief.

      Global south perspective

      Motivated by conversations with colleagues and her own “uncomfortable” experience working on the small-islands chapter of the sixth assessment cycle (AR6) WG2 report, Maharaj – an adjunct professor at the University of Fiji – reached out to dozens of fellow contributors to understand their experience.

      The exercise, she said, revealed a “dominance of thinking and opinions from global north scientists, whereas the global south scientists – the scientists who were people of colour – were generally suppressed”.

      The perspectives of scientists who took part in the survey and future recommendations for the IPCC are set out in a peer-reviewed essay – co-authored by 20 researchers – slated for publication in the journal PLOS Climate. (Maharaj also presented the findings to the IPCC in September.)

      The draft version of the essay notes that global south scientists working on WG2 in AR6 said they confronted a number of diversity, equity and inclusion (DEI) issues, including “skewed” author selection, “unequal” power dynamics and a “lack of respect and trust”. The researchers also pointed to logistical constraints faced by global south authors, such as visa issues and limited access to journals.

      The anonymous quotations from more than 30 scientists included in the essay, Maharaj said, are “clear data points” that she believes can advance a discussion about how to make academia more inclusive.

      “The literature is full of the problems that people of colour or global south authors have in academia, but what you don’t find very often is quotations – especially from climate scientists,” she said. “We tend to be quite a conservative bunch.”

      Road to ‘improvement’

      Among the recommendations set out in the essay are for DEI training, the appointment of a “diversity and inclusion ombudsman” and for updated codes of conduct.

      Marharaj said that these “tactical measures” need to occur alongside “transformative approaches” that help “address value systems, dismantle power structures [and] change the rules of participation”.

      With drafting of the AR7 reports now underway, Maharaj said she is “hopeful” the new cycle can be an improvement on the last, pointing to a number of “welcome” steps from the IPCC.

      This includes holding the first-ever expert meeting on DEI this autumn, new mechanisms where authors can flag concerns and the recruitment of a “science and capacity officer” to support WG2 authors.

      The hope, Maharaj explained, is to enhance – not undermine – climate science.

      “The idea here was to move forward and to improve the IPCC, rather than attack it,” she said. “Because we all love the science – and we really value what the IPCC brings to the world.”

      Watch, read, listen

      BROKEN PROMISES: Climate Home News spoke to communities in Nigeria let down by the government’s failure to clean up oil spills by foreign companies.

      ‘WHEN A ROAD GOES WRONG’: Inside Climate News looked at how a new road from Brazil’s western Amazon to Peru has become a “conduit for rampant deforestation and illegal gold mining”.

      SHADOWY COURTS: In the Guardian, George Monbiot lamented the rise of investor-state dispute settlements, which he described as “undemocratic offshore tribunals” that are already having a “chilling effect” on countries’ climate ambitions.

      Coming up

      Pick of the jobs

      DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.

      This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.

      The post DeBriefed 5 December: Deadly Asia floods; Adaptation finance target examined; Global south IPCC scientists speak out appeared first on Carbon Brief.

      DeBriefed 5 December: Deadly Asia floods; Adaptation finance target examined; Global south IPCC scientists speak out

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