Heat Pumps

Heat pumps are one of the most energy-efficient ways to heat (and cool!) buildings.

Everything you need to know about heat pumps


Heat pump technology is not new; the first model was built in the 1830s1. With advances in design, heat pumps have become a super-efficient, planet-friendly way to both heat and cool buildings. This dual functionality provides consistent indoor temperatures throughout the year, enhancing comfort, convenience, and productivity.

How do heat pumps work?

Heat pump functionality varies somewhat from model to model, largely depending on the size of the space being heated or cooled and the level of temperature adjustment needed.

The core functionality remains the same across all heat pumps, however. In cold seasons, these appliances draw in heat energy from a building’s exterior (either from the surrounding air or from geothermal energy in the ground). Chemicals known as refrigerants are used to extract this heat, which is then transferred indoors through radiators, ductwork, or under-floor heating.

In warm seasons, heat pumps use the same process to extract heat from indoor air and send it outdoors, following the exact same steps as a standard air conditioner. (That’s because air conditioners are technically a type of heat pump. In fact, in some parts of the world, “air conditioning” refers to both heating and cooling.)

To understand the benefits of heat pumps, it’s important to understand how they differ from other heating technologies. Devices like wall heaters, baseboard heaters, and portable space heaters rely on electric resistance technology, which works by making a conducting material like copper or rubber oppose the flow of electrical current. When the current encounters this resistance, some electrical energy is converted into heat.

Other heating devices, such as boilers, burn fossil fuels like natural gas or oil to generate heat. For gas and oil boilers, the fuel is fed into a combustion chamber, where an electric spark ignites the fuel; once it’s burning, hot gases are channeled through a heat exchanger, which transfers heat to air or water circulating in a separate system.

In contrast to these technologies, heat pumps transfer heat rather than creating it, which is much less energy -intensive. Some heat pumps can reach up to 300% or 400% efficiency2—or, in other words, can deliver up to three or four times the heat energy to a building per unit of energy consumed. This easily tops the performance of electric resistance heaters, which can achieve only around 100% efficiency, or gas systems, which top out between 80% and 99% efficiency.

Where are heat pumps used?

Today, heat pumps are used in commercial, industrial, and residential settings. According to the International Energy Agency (IEA), heat pumps met roughly 10% of all space heating needs in 2021.3

Asia is a major market for these appliances. Japan has the world’s highest penetration of heat pumps, with more than 90% of homes4 using them for space heating and cooling. China has the world’s largest heat pump market.

In parts of Europe and the United States, adoption is relatively high and growing. Finland, France, Germany, and Sweden have the highest adoption in Europe; in Sweden, 29%5 of all homes use heat pumps. In the US, heat pumps are more common in the Midwest and South, although their numbers are growing in places like Massachusetts and New York.

Why are heat pumps an important climate solution?

Space heaters consume a massive amount of energy. Together with water heaters, they are responsible for half of the global energy use in buildings.6 Since much of this energy is produced either by burning fossil fuels in the heater or using electricity produced with fossil fuels, the emissions from space heating are enormous. According to the IEA, heating buildings is responsible for 4 gigatons of CO2 emissions every year—10% of the global total.7

Heat pumps’ high efficiency and ability to run on electricity (which can be powered by renewable energy) makes them a powerful solution to space heating’s climate challenge. Stopping the sale of fossil fuel–based heating appliances and fully transitioning stock to heat pumps by 2050 could avoid 1.8 gigatons of CO2 emissions in 20508—equivalent to the annual emissions of 475 coal-burning power plants.9

Can heat pumps help people save money?

Since heat pumps are far more efficient than traditional gas and electric heating systems, they can significantly reduce energy bills. (The specific cost-savings potential varies, depending on the cost of the heat pump as well as fuel and electricity prices.)

Because heat pumps provide both heating and cooling, they can also save consumers money by eliminating the need to purchase and maintain two separate temperature-control systems.

While the upfront costs of purchasing and installing heat pumps can be higher than those of other space-heating solutions, the long-term savings on energy bills offset this expense in some cases.

CLASP has identified 10 appliances critical to fighting climate change and improving people's lives. Heat pumps are one.

A technician examining a heat pump

[Photo: Shutterstock]

A heat pump in a snowy location

[Photo: Shutterstock]

A technician speaking with a family in front of a heat pump

[Photo: Shutterstock]

What is the solution?


Increasing awareness, trust, and deployment of energy-efficient heat pumps will cool and warm buildings like homes, businesses, schools, and hospitals while using less energy, generating fewer climate emissions, and potentially lowering energy bills for some users.

Efficient heat pump technology already exists; it just needs to be deployed across the world.

Heat pump in use [Photo: Shutterstock]

How can we achieve this?


Governments

  • Develop, promote, and incentivize the production, import, and national adoption of energy-efficient heat pumps and those that use refrigerants with low global warming potential (GWP).
  • Invest in and increase access to renewable energy options for homes and business to power heat pumps sustainably.
  • Set policies to phase out the production, trade, and sale of inefficient space heating and cooling systems.
  • Use labels to indicate and promote the most efficient models.
  • Ensure that building standards and codes provide efficient heat pumps as the default.
  • Reduce the need for mechanical heating and cooling by ensuring building standards and codes require high-performance buildings as the default.

Heat pump manufacturers

  • Invest in research and development to improve the efficiency, affordability, and climate-friendliness of heat pumps to match global best practice.

Consumers and consumer groups

  • Choose the most efficient heat pump optimized for your local weather conditions to lower your energy bills and reduce your carbon emissions.
  • Help increase awareness of the cost and environmental benefits of efficient heat pumps for heating and cooling spaces.
  • Contact government representatives to request ambitious efficiency policies for all appliances.
  • Increase the insulation and layers of glazing on your homes and businesses to help manage temperature fluctuations and reduce the need for space cooling and heating.

Recent News


Are you a policymaker working on heat pumps? Explore CLASP's free tools:


Net Zero Appliances NDC Toolkit

  • Learn how (and why) to maximize the potential of appliance efficiency in NDCs.

World's Best MEPS: Tracking Leaders in Appliance Energy Efficiency Standards

  • Find the world’s most ambitious energy performance standards for six key appliances and equipment.

Mepsy: The Appliance & Equipment Climate Impact Calculator

  • Analyze efficiency policy options for key appliances across 162 countries.

0. David Banks, ”An Introduction to Thermogeology: Ground Source Heating and Cooling, 2nd Edition” (John Wiley and Sons, Ltd., June 2012) Chapter 5, pp. 114-132. https://onlinelibrary.wiley.com/doi/10.1002/9781118447512.ch5.

2. ”The Future of Heat Pumps,” IEA, accessed July 8, 2025. https://www.iea.org/reports/the-future-of-heat-pumps/executive-summary.

3. ”Global Energy Transitions Stocktake”, IEA, 2023. https://www.iea.org/topics/global-energy-transitions-stocktake.

4. ”Technology and Innovation Pathways for Zero-Carbon-Ready Buildings by 2030: A strategic vision from the IEA Technology Collaborations Programmes”, IEA, 2022, https://www.iea.org/reports/technology-and-innovation-pathways-for-zero-carbon-ready-buildings-by-2030.

5. ”Heating,” IEA, July 11, 2023. https://www.iea.org/energy-system/buildings/heating.

6. ”The Future of Heat Pumps,” IEA, November 2022. https://www.iea.org/reports/the-future-of-heat-pumps.

7. ”Net Zero Heroes: Scaling Efficient Appliances for Climate Mitigation, Adaptation, and Resilience,” CLASP, November 2023. https://www.clasp.ngo/report/net-zero-heroes/executive-summary/.

8. ”Greenhouse Gas Equivalencies Calculator,” United States Environmental Protection Agency. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator#results.