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52 | THE PERFECT FIT REGULATORY ASSISTANCE PROJECT 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 to early 1980s Swedish government aimed to reduce oil dependency. Deployment of heat pumps supported by direct investment grants, low interest loans, and the Swedish building code. Mid-1980s 1990-1995 Technology procurement programme (NUTEK) - investment subsidies and information campaigns. 1993 2006 GSHP Swan eco-label development & for heat pumps commercialisation introduced. programme. 5.5 Varmepumpe and lämpöpumppu: heat pumps in Sweden and Finland The Nordic EU Member States of Sweden and Finland represent a somewhat exceptional example of mass deployment of heat pumps. It is exceptional because mass penetration of heat pumps has already been achieved, but also because these countries never used fossil gas as a dominant heating technology. Among the Nordic countries’ heat pump success, Finland is perhaps the most successful with around a third of all homes now using heat pumps,89 making it a world leader. A combination of different policy measures including grants, increased taxes on fossil fuels, ever-tightening buildings standards, and communication campaigns have underpinned this Finnish success story. As is shown in Figure 15, Sweden also experienced a significant growth in heat pump deployment from the late 1990s. This growth was also supported by a combination of measures including labelling and standards, carbon pricing and direct subsidies for households.90 Figure 15. Sweden: heat pump support policies and market development, 1982-2013 Mid-1970s 1991 Carbon tax introduced at a standard rate of $44 per metric ton of CO2. 1998 2005 1993-2014 Carbon tax more than tripled, e.g. the standard rate was: $45/tCO2 in 1993, $105/tCO2 in 2003, and $168/tCO2 in 2014. Heat pump market collapsed, partly due to declining oil prices, the ending of government subsidies, poor technical standards, and a slowdown in the construction of new homes. 1998-2010 Subsidies for households to switch from electric heating to alternative heating systems (1998-99, 2001-03, 2006-10). P-label quality mark for heat pumps and development. installer certification training. Swan eco-label for heat pumps – stakeholder criteria Source recreated from: Hanna, R., et al. (2016). UKERC Technology and Policy Assessment — Best practice in heat decarbonisation policy: A review of the international experience of policies to promote the uptake of low-carbon heat supply. UKERC. 89 Sovacool, B. & Martiskainen, M. (2020). Hot transformations: Governing rapid and deep household heating transitions in China, Denmark, Finland and the United Kingdom. Energy Policy, Volume 139, April 2020, 111330. https://doi.org/10.1016/j.enpol.2020.111330 90 Hanna, R., Parrish, B., & Gross, R. (2016). UKERC Technology and Policy Assessment — Best practice in heat decarbonisation policy: A review of the international experience of policies to promote the uptake of low-carbon heat supply. UKERC. https://www.theccc.org.uk/wp-content/uploads/2017/01/UKERC-for-the- CCC-Best-practice-in-heat-decarbonisation-policy.pdf 1982 1985 1990 1995 2000 2005 2010 2013 Annual heat pump sales (units sold)PDF Image | RAP Perfect Fit Heat Pump
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