The challenges and opportunities of heat pumps on international and EU level

1. The challenges and opportunities of heat pumps on international and EU level Stefaan Vanderstraeten - Daikin Europe N.V.

2. Overview The importance of heat pumps : • On International level : Heat pumps in the Climate Change debate • On European level : Heat Pumps in the Energy & Climate Package • On National Level : Heat Pumps as part of national policies

3. 1.International Level : HP in the Climate Change Debate 10 10 - - UNEP April 2007 October 2007 December 2008 1. Buildings are responsible for 30%-40% of total energy use and energy-related CO2 emissions 2. Energy mainly (>80%) consumed in the building use phase (heating, Cooling, hot water,….)

4. 10 - 25% 10 10 - - 25% 25% Hot Water 3% Space Cooling Hot Water Hot Water 50-60% Others 50 50 - - 60% 60% Space Heating 20% Space Space Heating Heating 1.International Level : HP in the Climate Change Debate(2) Big opportunities for Heat pump technology Although improving building efficiency is often profitable, investments are hindered by barriers : Including misplaced incentives, distorted energy price/tax regimes, fragmented industry and building design processes, limited access to financing, lack of information and awareness, regulatory failures, etc. Therefore, only strong policies can catalyse markets in capturing the potentially cost-effective investments

5. 1.International Level : HP in the Climate Change Debate (3) Heat pump potential recognized globally International Energy Agency : IEA Heat Pump Technology Center Japan : heat pumps can reduce Japanese CO2 emissions by 10 % IEA : heat pumps can reduce global CO2 emissions by 8%

6. 2.European Level : HP in the Energy and Climate Package “Energy” is the key word for 3 reasons: “20-20-20 policy” Economy (Lisbon) 20% less primary energy use compared to 2020 projections Global Warming (Kyoto) ENERGY CO2 eq. emissions : 20% reduction by 2020 against 1990 (30% reduction depending on Copenhagen negotiations) Security (supply) 20% share of Renewable Energy sources by 2020

7. 2.European Level : HP in the Energy and Climate Package How is the policy translated ? • Developments of criteria for Ecodesign Directive : • Water heaters, boilers, air conditioners, heat pumps, … • Addition and revision of Energy labels • Revision of Energy performance of buildings Directive • Ecolabel : the EU ecoflower • Energy savings Directive 20% less primary energy 6. Regulation on fluorinated greenhouse gases (F gas regulation) 7. Emission Trading 20% less CO emissions 2 20% share 8. the Renewable Energy Source directive, incl. aerothermal, hydrothermal & geothermal energy renewable energy

8. G F E D A+++ C B A A+ A++ What does EU say about heat pumps ? ECODESIGN for Energy using products , lot 1, task 7, p. 17 (comparing heating technologies, incl. gas & fuel boilers, CHP,…) : “Heat pump technologies represent an interesting option with a large saving potential and should be promoted whenever and wherever possible. As such they should therefore have their place in the highest ranks of a labelling scheme.” Space Heating* Heat pumps are considered as Best Available Technology HEAT PUMPS 120% 104% 88% Gas Cond. boiler 80% Ban 2013 72% 64% 56% 48% 40%

9. What does EU say about heat pumps ? ENERGY PERFORMANCE FOR BUILDINGS DIRECTIVE Recast suggested by EU Commission and EU Parliament , now discussed by EU Council : New buildings : For new buildings Member States shall ensure that, before construction starts, the technical, environmental and economic feasibility of […] alternative systems is considered and taken into account such as : heat pumps Existing buildings & systems : Member States may decide to take measures to ensure the provision of advice to the users on the replacement of boilers, other modifications to the heating system and on alternative solutions

10. What does EU say about heat pumps ? • DIRECTIVE for the promotion of renewable energy sources : • Not only geothermal energy, but also aerothermal and hydrothermal energy are renewable energy sources (cfr definitions of RES) • - “Aerothermal, geothermal and hydrothermal heat energy captured by heat pumps shall be taken into account provided that the final energy output significantly exceeds the primary energy input required to drive the heat pumps”. • In the case of heat pumps, Member States shall promote those that fulfil the minimum requirements of EU eco-labelling • - Member States shall ensure that certification schemes or equivalent qualification schemes become or are available by 31 December 2012 for installers of small-scale biomass boilers and stoves, solar photovoltaic and solar thermal systems, shallow geothermal systems and heat pumps.

11. What is the EU Ecolabel ? • ECOLABEL : the EU Ecoflower • The European Ecolabel, also known as 'The Flower' is… • an official environmental label for products and services established by the EU Commission in 1992 in cooperation with national member states. • known by 37% of EU citizens • - The EU Eco-label guarantees that the awarded products meet EU-wide valid strong environmental criteria • - Compliance is checked during a certification procedure led by a national Competent Body.

12. What does EU say about heat pumps ? • DIRECTIVE on energy end-use efficiency and energy services : • Heat Pumps are examples of eligible energy efficiency improvements measures for heating and cooling in residential and tertiary sectors. • Heat Pumps are “cost-effective, practicable and reasonable measures to contribute to the national indicative energy savings target of 9% by 2017. • In the evaluation of the National Energy Efficiency Action Plans, the European Commission consider Heat Pumps as part of programmes for more efficient electricity use..

13. 3.National Level : HP as part of national policies • Now the Member States have to set up their national action plans to implement the EU policies • Eg. RES, ESD, GPP, EPBD,…… • Heat pumps will be of major importance to reach Member State targets on energy efficiency, CO2 emissions reduction and renewable energy • National & Regional Incentives to increase the awareness of the end-user.

14. Summary Overview Incentives Heat pumps F 2009 (1) UD X X UD UD

15. X X X X X X X

16. X Cooling not allowed +Incentives decreased E-Level X Cooling not allowed X +Incentives decreased E-Level UD

17. UK government commissioned report : heat pumps key to meet RES target

18. July 09 : Mr Blair recognises the heat pump potential. 1.Heat pumps are most suitable for use in cooling, space heating, hot water and industrial heat. 2.Heat pumps can reduce 0.77 GtCO2 in 2050Heat pumps are 1 out of 17 key technologies which according to IEA’s BLUE Map Scenario will be responsible for approximately 80% of total emissions reductions needed to 2050, equivalent to 42 GtCO2. Heat pumps have the potential to provide savings of 0.77 GtCO2 (1.6% of overall energy-related emissions reduction), if the technology is deployed in 50-70% of buildings in OECD countries by 2050.

19. Sept 09 : Sarkozy launches Tax on Fossil Fuels during visit at heat pump manufacturer CIAT The carbon tax would add roughly 80 euros to the annual gas bill of a two-bedroom apartment

20. Conclusion • No doubt about it : Heat pumps are a key solution on EU and International level to : • Save energy • Reduce CO2 emissions • Use renewable energy sources