Offshore wind turbines generate electricity by converting the energy from rotating turbine blades into electrical energy. The main components of offshore wind turbines include rotor blades, a tower to raise the rotor above the water, a nacelle hub that houses the generator and other key components, and a foundation that stabilizes the structure in the water. Offshore wind farms require additional infrastructure to transport generated energy through undersea cables to transformers and power substations before electricity can be supplied to consumers (Figure 1). To optimize performance, offshore turbines often use advanced control systems (e.g., yaw, pitch, and safety sensors).
Deploy Offshore Wind Turbines

Offshore wind turbines are ocean-based machines that harness natural wind to generate electricity. These turbines use the relatively strong winds over the water to rotate their blades, which power a generator to make electricity. The electricity travels through underwater cables to reach the land. There are two main types: fixed-bottom turbines, which are attached to the seabed in shallow waters (typically up to 60 meters deep), and floating turbines, which sit on platforms anchored in deeper waters. Offshore wind farms can produce more electricity than land-based wind farms because ocean winds are usually stronger and steadier than winds on land.
Deploying additional offshore wind turbines reduces CO₂ emissions by increasing the availability of renewable energy sources to meet electricity demand, therefore reducing dependence on fossil fuel-based sources in the overall electricity grid mix.
Offshore wind turbines are often placed far from the coast to avoid causing noise pollution or taking up space on land. Foundations can be fixed to the seafloor (fixed-bottom) or floating depending on water depth and other characteristics, such as seabed topography and operational logistics (Afridi et al., 2024). Most offshore wind turbines operating in 2023 were fixed-bottom and limited to seafloor depths around 50 meters. Floating wind farms access wind resources over deeper waters, up to 1,000 meters (de La Beaumelle et al., 2023).
Wind speeds over water are generally higher and more consistent than over land, which allows for more reliable and increased electricity generation. Potential power generated from offshore wind turbines is directly proportional to the swept area of the rotor blades and the wind speed cubed; a doubling of wind speed corresponds to an eightfold increase in power (U.S. Energy Information Administration [U.S. EIA], 2024). The maximum electrical power a turbine can generate is its capacity in MW. The average installed offshore wind turbine rating grew from 7.7 MW in 2022 to 9.7 MW in 2023 (McCoy et al., 2024), with the total global installed capacity reaching 75.2 gigawatts (GW) in 2023 (Global Wind Energy Council [GWEC], 2024).
The global weighted average capacity factor for offshore wind turbines has reached 41% (International Renewable Energy Agency [IRENA], 2024c) – an increase from 38% a decade earlier – driven by advancements in turbine efficiency, hub height, rotor diameter, and siting optimization. Our analysis assumed an offshore wind turbine capacity factor of 41% (IRENA, 2024c). Offshore wind capacity varies across regions due to differences in policy support, coastal geography, water depths, and infrastructure readiness. Electric power output can be converted to energy generated by multiplying capacity by the time interval and the capacity factor. For annual generation, we multiply by 8,760 hours for one year.
The main siting considerations for offshore wind farms are distance from shore and water depth, but energy output can also be impacted by atmospheric wind conditions as well as the configuration of turbines within a wind farm (de La Beaumelle et al., 2023; IRENA, 2024c). Protected areas are also excluded during siting.
Since wind is a clean and renewable resource, offshore wind turbines do not contribute to GHG emissions or air pollution while generating energy. There are emissions associated with the manufacturing and transportation of turbine components. For this assessment, we did not quantify emissions during the construction of offshore wind farms; these emissions can be addressed with industry-sector solution assessments. Increased deployment of offshore wind turbines contributes to reduced CO₂ emissions when it reduces the need for electricity generation from fossil fuels.
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Lead Fellow
Michael Dioha, Ph.D.
Contributors
Ruthie Burrows, Ph.D.
Daniel Jasper
Internal Reviewers
James Gerber, Ph.D.
Megan Matthews, Ph.D.
Amanda Smith, Ph.D.
Based on data provided by the International Energy Agency (IEA), global emissions from electricity generation accounted for an estimated 530 kg CO₂‑eq /MWh (540 kg CO₂‑eq /MWh, 20-yr basis). To convert from MWh to MW, we used the global weighted average capacity factor for offshore wind turbines of 41% (IRENA, 2024c). We estimated offshore wind turbines to reduce 1,900 t CO₂‑eq /MW (1,900 t CO₂‑eq /MW, 20-yr basis) of installed capacity annually (Table 1).
Table 1. Effectiveness at reducing emissions.
Unit: t CO₂‑eq /MW installed capacity/yr, 100-yr basis
Estimate | 1900 |
To estimate the effectiveness of offshore wind turbines, we assumed that electricity generated by newly installed offshore wind displaces an equivalent MWh of the global electricity grid mix. Then, the reduction in emissions from additional offshore wind capacity was equal to emissions (per MWh) from the 2023 global electricity grid mix as per the IEA World Energy Balances (IEA, 2024a). We then used the offshore wind capacity factor to convert to annual emissions per MW of installed capacity.
During operation, offshore wind turbines do not emit GHGs, so we assumed zero emissions per MW of installed capacity. However, emissions arise during the manufacturing of components, transportation, installation, maintenance, and decommissioning (Atilgan Turkmen & Germirli Babuna, 2024; Kaldellis & Apostolou, 2017; Mello et al., 2020; Yuan et al., 2023). Life-cycle analyses estimate that lifetime GHG emissions of offshore wind turbines are approximately 25.76 g CO₂‑eq /kWh of electricity generated (Yuan et al., 2023).
In our analysis, we focused solely on emissions produced during electricity generation, so carbon payback time and embodied life-cycle emissions were not included in our estimates of effectiveness or climate impacts.
We estimated a mean levelized cost of electricity (LCOE) for offshore wind turbines of US$96/MWh based on three industry reports (IEA, 2024b; IRENA, 2024c; Nuclear Energy Agency & IEA, 2020). LCOE is a widely used metric that allows for cost comparison across generation technologies, incorporating installed capital costs, operation and maintenance, project lifespan, and energy output. Between 2010–2023, the global weighted average LCOE for offshore wind fell by 63%, from US$203/MWh to US$75/MWh, reflecting improvements in turbine size, supply chains, and regulatory support (IRENA, 2024c).
Regional costs vary significantly. Denmark had the lowest LCOE in 2023 at US$48/MWh due to favorable siting conditions and grid cost exemptions. The UK and Germany achieved the largest LCOE reductions since 2010, of 73% and 67%, respectively (IRENA, 2024c). In contrast, recent U.S. estimates exceed US$120/MWh for unsubsidized projects (McCoy et al., 2024), reflecting higher labor costs, permitting challenges, and nascent supply chains. Lazard (2023) reports a broad range of US$72–140/MWh, emphasizing how siting, project size, and technology selection influence cost outcomes.
These values mask substantial variability and project-specific risk factors. LCOEs are highly sensitive to financing terms, interest rates, permitting delays, regional grid integration requirements, and the availability of local supply chains. For context, offshore wind costs are increasingly competitive with fossil fuel–based power generation, which ranges between US$70–176/MWh (IRENA, 2024c). Offshore wind gigawatt-scale potential near load centers makes it a good potential option for decarbonizing coastal grids.
Offshore wind turbines exhibit a clear learning curve, with costs declining as deployment scales and the technology matures. Learning rates for offshore wind could vary from 7.2–43%, depending on the type of costs considered, study period, technological advancements, and regional conditions. Most of the cost decline is driven by reductions in capital expenditure, particularly from larger turbines, improved manufacturing, streamlined installation, and economies of scale.
According to IRENA (2024c), the global weighted-average installed cost of offshore wind between 2010–2023 reflects a learning rate of 14.2%. Modeling by the U.S. National Renewable Energy Laboratory (NREL) estimates capital cost reductions per doubling of installed capacity at 8.8% for fixed-bottom turbines and 11.5% for floating turbines (Shields et al., 2022). European forecasts suggest that ongoing innovation and learning by doing could reduce offshore wind’s LCOE by up to 25% by 2030 relative to 2020, with learning rates of 6–12% (TNO & BLIX, 2021).
Earlier meta-analyses found offshore wind learning rates of 5–19% between 1985–2001, driven by improved turbine design and installation methods (Rubin et al., 2015). More recent assessments focused on 2010–2016 suggest capital cost learning rates of 10–12% (Beiter et al., 2021). Looking ahead, global experts project cost reductions of 37–49% by 2050 due to continued technological progress (Wiser et al., 2021).
Learning rates also vary by geography. Mature markets like Europe benefit from robust supply chains and permitting frameworks, leading to faster cost declines. On the other hand, emerging markets face higher initial costs and slower learning trajectories. We estimated a 15.8% median global learning rate for offshore wind, implying a 15.8% reduction in LCOE for each doubling of installed capacity (Table 2).
Table 2. Learning rate: drop in cost per doubling of the installed solution base.
Unit: %
25th percentile | 11.9 |
mean | 15.8 |
median (50th percentile) | 15.8 |
75th percentile | 19.6 |
Speed of action refers to how quickly a climate solution physically affects the atmosphere after it is deployed. This is different from speed of deployment, which is the pace at which solutions are adopted.
At Project Drawdown, we define the speed of action for each climate solution as emergency brake, gradual, or delayed.
Deploy Offshore Wind Turbines is a GRADUAL climate solution. It has a steady, linear impact on the atmosphere. The cumulative effect over time builds as a straight line.
One limitation of our approach is the assumption that each additional MWh generated by offshore wind turbines displaces an equivalent MWh of the existing grid mix. This simplification implies that new offshore wind may, at times, displace other renewables such as onshore wind, rather than fossil-based sources. In reality, the extent of avoided emissions varies based on regional grid dynamics, marginal generation sources, and the timing and location of electricity production. This approach could be refined in the future, as emerging evidence suggests that in some cases, wind generation tends to displace a larger share of fossil-fuel output than assumed in average grid-mix methods (e.g., Millstein et al., 2024). While offshore wind avoids many of the land-use constraints associated with onshore wind, it introduces unique challenges that may limit scaling. These include high up-front capital costs, limited port infrastructure, specialized vessels, and supply-chain constraints for large components such as floating platforms and subsea cables. There is also growing competition for ocean space from fisheries, marine conservation zones, and shipping corridors (IEA, 2019).
Like all large-scale infrastructure, offshore wind systems face some risk of early retirement or component failure, which can affect their life-cycle emissions. However, because offshore wind turbines produce zero emissions during operation, any electricity they generate displaces fossil-based power and avoids associated emissions. These benefits are not reversed if a turbine is decommissioned early. Most offshore wind turbines operate for 25–30 years, with newer designs expected to exceed this lifespan (Bills, 2021; IEA, 2019). The bulk of their life-cycle emissions are front-loaded, arising from manufacturing, transportation, and installation. As a result, early retirement reduces the amount of clean electricity generated over the turbine’s lifetime, but it does not erase the emissions already avoided during its operation.
As of 2023, the global installed capacity for offshore wind energy reached approximately 73,000 MW (Table 3; IRENA, 2024b). Although we used 2023 as our baseline for current adoption, in 2024 an additional 10,000 MW of offshore wind capacity was installed, bringing the global total to over 83,000 MW (GWEC, 2025).
Table 3. Current adoption level, 2023.
Unit: MW installed capacity
total | 73,000 |
China currently leads in offshore wind deployment, accounting for more than 40 GW, or over half of the global installed capacity. Adoption remains negligible in many countries with several regions – particularly in Africa, Latin America, and parts of Southeast Asia – reporting minimal or no offshore wind installations to date, despite their huge potential (GWEC, 2025). For example, the United States, despite its vast technical potential, had installed only 41 MW by 2023 (IRENA, 2024b).
The global offshore wind market has gained significant momentum in recent years. A record number of new installations occurred in 2021, with continued but slower growth in 2022 and 2023. The most active markets remain concentrated in Asia and Europe, with China, the United Kingdom, Germany, and the Netherlands leading in cumulative capacity. The European Union collectively reached 18.1 GW by 2023 (IRENA, 2024b), driven by favorable policy environments and advanced maritime infrastructure (IRENA, 2024a).
Global offshore wind capacity has grown rapidly, expanding from less than 1 GW in 2000 to about 73 GW by 2023 (Figure 2), reflecting technological progress, supportive policies, and accelerating investment.
Figure 2. Global offshore wind turbine installed capacity, 2000–2023. Global offshore wind capacity expanded from less than 1 GW in 2000 to about 73 GW by 2023, reflecting rapid technological progress, supportive policies, and accelerating investment in clean energy.
International Renewable Energy Agency. (2024). Renewable capacity statistics 2024. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Mar/IRENA_RE_Capacity_Statistics_2024.pdf
We calculated global adoption for each year 2013–2023 and took the year-to-year difference. The adoption trend of offshore wind energy from 2013–2023 reveals a rapid and accelerating growth trajectory with significant regional disparities. Globally, installed capacity expanded from 7,200 MW in 2013 to 73,000 MW in 2023, reflecting a 10-fold increase over the decade. The most dramatic acceleration occurred in 2020–2021, when global capacity jumped from 34,000 MW to 54,000 MW. Comparing year-to-year global adoption, the mean global adoption trend was adding approximately 6,000 MW of installed capacity per year (Table 4), but expansion was unevenly distributed geographically.
Table 4. Adoption trend, 2013–2023.
Unit: MW installed capacity/yr
25th percentile | 3,000 |
mean | 6,000 |
median (50th percentile) | 5,000 |
75th percentile | 7,000 |
Regionally, Asia demonstrated the most remarkable growth. This growth was particularly pronounced in 2020–2021, when capacity soared from 9,400 MW to 28,000 MW, largely driven by China’s rapid deployment. Meanwhile, Europe also experienced steady growth, with installed capacity increasing from 8,000 MW in 2014 to 33,000 MW in 2023. In contrast, North America lags behind, with only 41 MW of installed capacity recorded as of 2023, indicating slow current adoption trends. The slow adoption of offshore wind technology in North America may be attributed to various factors, including regulatory and social barriers as well as high interest rates (McCoy et al., 2024).
Looking ahead, according to forecasts from the World Forum Offshore Wind (WFO, 2024), global offshore wind capacity is anticipated to reach 414 GW by 2032. The GWEC projects more than 350 GW of new offshore wind capacity in 2025–2034, with annual additions surpassing 30 GW by 2030 and 50 GW by 2033, bringing total capacity to about 441 GW by 2034 (GWEC, 2025).
The adoption ceiling for offshore wind turbines (Table 5) is determined by the technology’s global technical potential, representing the theoretical maximum deployment based on physical resource availability. Offshore wind benefits from vast oceanic areas with higher and more consistent wind speeds than onshore sites. However, its realizable potential is shaped by factors such as water depth, distance to shore, seabed conditions, regional wind patterns, and technological limitations.
Table 5. Adoption ceiling: upper limit for adoption level.
Unit: MW installed capacity
25th percentile | 58,000,000 |
mean | 62,000,000 |
median (50th percentile) | 62,000,000 |
75th percentile | 67,000,000 |
Estimates of offshore wind’s technical potential vary widely. A meta-analysis by de La Beaumelle et al. (2023) found values of 4.17–626 petawatt-hours (PWh)/year, with a median of 193 PWh/year. The World Bank’s Energy Sector Management Assistance Program (ESMAP) analysis (2019; n.d.) suggests over 71,000 GW of global offshore wind potential, with more than 70% located in deep waters suitable only for floating turbines. Roughly 25% of this resource lies within low- and middle-income countries, offering major opportunities for clean energy expansion.
Technical potential is typically calculated using wind speed maps, turbine power curves, and water depth data. For example, the ESMAP-IFC 2019 study identified 3.1 terawatts (TW) of potential across eight emerging markets using global wind and ocean depth data (ESMAP, 2019). These figures, however, do not reflect constraints such as economics, regulation, infrastructure, or marine uses that would compete with offshore wind (ESMAP, 2019). Challenges like ecological impact, permitting, and grid integration could significantly reduce practical deployment.
Despite these hurdles, offshore wind’s potential remains vast. For this analysis, we defined the adoption ceiling using installable capacity rather than generation output to avoid forecasting uncertainty. Based on the literature, we estimated an adoption ceiling of 62,000,000 MW. The scaling of floating wind turbines, especially in deep waters, will be critical to unlocking this resource, and will require continued innovation and policy support (Tumse et al., 2024).
The IEA’s World Energy Outlook (WEO) 2024 includes several key scenarios that explore different energy futures based on varying levels of policy intervention, technological development, and market dynamics. We define the adoption achievable range for offshore wind turbines based on the Stated Policies Scenario (STEPS) and Announced Pledges Scenario (APS) (IEA, 2024b).
Achievable – Low
The low achievable adoption level is based on STEPS, which captured the current trajectory for increased adoption of offshore wind energy as well as future projections based on existing and announced policies. Under this scenario, offshore wind capacity is projected to increase more than 13-fold from 73,000 MW to 1,000,000 MW by 2050 (Table 6). This corresponds to an average compound annual growth rate (CAGR) of 10.2%.
Table 6. Range of achievable adoption levels.
Unit: MW installed capacity
Current Adoption | 73,000 |
Achievable – Low | 1,000,000 |
Achievable – High | 1,600,000 |
Adoption Ceiling | 62,000,000 |
Achievable – High
The high achievable adoption level is based on APS, which assumes the same policy framework as STEPS, plus full realization of announced national energy and climate targets – including net-zero commitments supported by stronger clean energy investments. Under this scenario, offshore wind capacity is projected to increase by a magnitude of approximately 22, from 73,000 MW to 1,600,000 MW by 2050 (Table 6). This would require a CAGR of roughly 12.1% over the same period.
Using our adoption ceiling of 62 million MW, the current adoption of offshore wind turbines constitutes approximately 0.1% of its technical potential. The achievable adoption range, as calculated, is 1.6–2.6% of this potential.
Using baseline global adoption and effectiveness, we estimated the current total climate impact of offshore wind turbines to be approximately 0.14 Gt CO₂‑eq (0.14 Gt CO₂‑eq , 20-yr basis) of reduced emissions per year (Table 7). We estimated future climate impacts using the emissions from the 2023 baseline electricity grid. Actual emissions reductions could differ depending on how the emissions intensity of electricity generation changes over time. Assuming global policies on offshore wind power – both existing and announced – are backed with adequate implementation provisions, global adoption could reach 1 million MW by 2050. This would result in an increased emissions reduction of approximately 1.9 Gt CO₂‑eq per year. If every nation’s energy and climate targets (including net-zero commitments backed by stronger clean energy investments) are realized, offshore wind adoption could reach 1.6 million MW by 2050. This would lead to an estimated 3.0 Gt CO₂‑eq of reduced emissions per year.
Table 7. Annual climate impact at different levels of adoption.
Unit: Gt CO₂‑eq , 100-yr basis
Current Adoption | 0.14 |
Achievable – Low | 1.9 |
Achievable – High | 3.0 |
Adoption Ceiling | 120 |
We based the adoption ceiling solely on the technical potential of offshore wind resources, neglecting social and economic constraints. Thus, offshore wind turbines are unlikely to reach an average of 62 million MW of installed capacity in the next 100 years. However, reaching the adoption ceiling would correspond to annual emissions reductions of 120 Gt CO₂‑eq/yr.
Income and Work
Wind power has a strong positive impact on the economy. Wind energy projects have been shown to increase total income and employment in high-income and low- and middle-income countries, although the costs of new projects may be higher in emerging markets until the market develops (Adeyeye et al., 2020; GWEC & Global Wind Organization, 2021; World Bank Group, 2021). As the offshore wind sector expands, so will the demand for workers. A report from NREL estimated that U.S. offshore wind projects between 2024–2030 will require an annual average of 15,000–58,000 full-time workers (Stefek et al., 2022). In California, planned and proposed offshore wind farms would add about 5,750 jobs and US$15 billion in wages and further contribute to the local economy by generating tax revenue (E2, 2023). Offshore wind could also strengthen energy security by diversifying the power mix and reducing dependence on imported fuels.
Health
Reduction in air pollution directly translates into health benefits and avoided premature mortality. Simulations of offshore wind projects in China estimate that reductions in air pollution could prevent about 165,000 premature deaths each year (Ren et al., 2025). Proposed offshore wind farms on the Atlantic and Gulf coasts of the United States could prevent about 2,100 premature deaths annually and save money in health benefits from improved air quality (Buonocore et al., 2016; Shawhan et al., 2024). Because these offshore wind projects would lessen demand for natural gas and coal-powered electricity generation, populated communities downwind from power plants along the East Coast of the United States – such as New York City – would experience health benefits from improved air quality (Shawhan et al., 2024). Although the economic benefits of improved health associated with wind power have already increased rapidly from US$2 billion in 2014 to US$16 billion in 2022, these benefits could be maximized by replacing fossil fuel power plants in regions with higher health damages (Qiu et al., 2022).
Nature Protection
While there are some risks through increased ship traffic and noise and light pollution, offshore wind may provide some benefits to fish and marine life (National Oceanic and Atmospheric Administration, n.d.; Galparsoro et al., 2022; World Economic Forum, 2025). Once constructed, offshore wind farms can serve as an artificial reef, providing new habitats in the submerged portion of the turbine (Degraer et al., 2020). When these habitats are colonized by marine organisms, this increases availability of food such as zooplankton and algae, which can increase the abundance of small fish nearby (Wilhelmsson et al., 2006).
Air Quality
Offshore wind energy reduces air pollutants released from fossil fuels, thereby reducing the emissions associated with burning coal and natural gas. A recent analysis of 32 planned or proposed offshore wind farms along the U.S. Atlantic and Gulf coasts estimated these projects could reduce emissions of nitrogen oxides by 4%, sulfur dioxide by 5%, and PM 2.5 by 6% (Shawhan et al., 2024). Modeling analyses of offshore wind in China estimate these projects could reduce about 3% of air pollution from electricity by lowering emissions from coal-powered electricity generation (Ren et al., 2025).
Implementing offshore wind energy involves several risks. Technically, offshore projects face harsh marine environments that can affect long-term reliability and increase maintenance costs (IRENA, 2024a). These risks can be reduced through advanced materials, corrosion‑resistant designs, predictive maintenance systems, and improved installation practices that extend turbine lifespans and reduce downtime. High capital costs and regulatory uncertainty remain among the most significant barriers, especially in emerging markets where financing, insurance, and investor confidence are limited (ESMAP, 2019). Addressing these challenges often requires stable policy frameworks, innovative financing mechanisms such as Contracts for Difference (CFDs) and blended finance, and public‑private partnerships to de‑risk investments and attract private capital.
There are also ecological risks associated with offshore wind farms, which can disrupt marine habitats, impact migratory birds and marine mammals, and cause seabed disturbances during installation (Galparsoro et al., 2022). Mitigation strategies such as adaptive siting, seasonal construction limits, and biodiversity offsets are increasingly used to minimize these impacts. Social resistance can arise from local communities due to factors such as visual impact, place attachment, perceived lack of benefits, and competing uses of marine space, such as fisheries and shipping lanes (Gonyo et al., 2021; Haggett, 2011).
Reinforcing
Increased availability of renewable energy from offshore wind turbines helps reduce emissions from the electricity grid as a whole. Reduced emissions from the electricity grid lead to lower downstream emissions for these solutions that rely on electricity use. Deploying offshore wind turbines also supports increased integration of solar photovoltaic technology by diversifying the renewable energy mix and reducing overreliance on solar variability.
Electrification of transportation systems will be more beneficial in reducing global emissions if the underlying grid includes a higher proportion of non-emitting power sources. Electric transportation systems can also reduce curtailment of wind energy through controlled-time charging and other load-shifting technologies.
Competing
Offshore wind could compete for policy attention and funding with onshore wind turbines, potentially slowing deployment in regions where onshore resources are also viable. Also, increased development and installation of offshore wind turbines could potentially compete with the deployment of those onshore, due to competition for raw materials.
Solution Basics
MW installed capacity
Climate Impact
CO₂ , CH₄, N₂O, BC
Offshore wind turbines do not emit GHGs during operation, but they are associated with embodied emissions from manufacturing, transport, and installation (Yuan et al., 2023). The Intergovernmental Panel on Climate Change (IPCC) life-cycle assessment estimates indicate that offshore wind energy produces about 8–35 g CO₂‑eq /kWh, compared to about 400–1,000 g CO₂ --eq/kWh for fossil-based electricity generators (Schlömer et al., 2014).
Increasing steel and concrete demand for turbine construction may cause indirect emissions in the industrial sector. These trade‑offs can be mitigated through circular economy approaches such as recycling and repurposing turbine components to cut material demand and emissions. Despite these trade-offs, the emissions saved over a turbine’s 25- to 30-year lifetime greatly exceed the upfront emissions.
Technical potential for offshore wind
Highlighted areas are suitable for offshore wind development for fixed turbines (those fixed to the seafloor, typically in waters less than 50 meters deep) and floating turbines (those anchored on platforms in waters less than 1,000 meters deep).
Energy Sector Management Assistant Program & The World Bank Group (2021). Global offshore wind technical potential (version 3) [Data set]. The World Bank Group. Link to source: https://datacatalog.worldbank.org/search/dataset/0037787
Technical potential for offshore wind
Highlighted areas are suitable for offshore wind development for fixed turbines (those fixed to the seafloor, typically in waters less than 50 meters deep) and floating turbines (those anchored on platforms in waters less than 1,000 meters deep).
Energy Sector Management Assistant Program & The World Bank Group (2021). Global offshore wind technical potential (version 3) [Data set]. The World Bank Group. Link to source: https://datacatalog.worldbank.org/search/dataset/0037787
Offshore wind energy is most promising in coastal regions with high wind resources and the physical and regulatory capacity to support utility-scale deployment. It is particularly valuable for countries with limited land availability or high coastal population density, offering a scalable and increasingly cost-effective pathway toward decarbonization. Offshore wind’s effectiveness is underpinned by its strong technical fundamentals, especially its relatively high capacity factor.
We estimated global offshore wind technical potential at around 62,000,000 MW. Notably, more than 70% of the technical potential lies in waters deeper than 50 meters. As of 2023, global installed offshore wind capacity had reached 73 GW, a nearly 20-fold increase since 2010. Europe and Asia account for nearly equal shares of current capacity. Europe remains a global leader with around 30 GW, led by the United Kingdom, Germany, Denmark, and Netherlands.
In Asia, China dominates the offshore wind space, with more than 30 GW installed and annual additions of nearly 17 GW in 2021 alone. Japan has set targets of 10 GW by 2030 and 30–45 GW by 2040, while South Korea aims for 14.3 GW by 2030 (IRENA, 2024a). The United States has vast offshore wind potential, with NREL estimating 1,476 GW for fixed‑bottom and 2,773 GW for floating installations (Lopez et al., 2022). The United States is beginning to scale up offshore wind through policy support from the Inflation Reduction Act, and large-scale projects are now under development along the East Coast. As of May 31, 2024, the country had 174 MW of offshore wind capacity installed (McCoy et al., 2024). While this installed capacity remains modest compared to Europe or China, it represents an initial step in building the domestic industry. Importantly, the U.S. offshore wind project development and operational pipeline exceeds 80,000 MW, highlighting the scale of development expected in the coming decade. Canada, with 9.3 TW of technical potential (7.2 TW of which is suitable for floating wind), has begun leasing processes in Nova Scotia targeting 5 GW by 2030 and integrating offshore wind into its green hydrogen strategy, while Australia’s Victoria state aims for 9 GW by 2040 (IRENA, 2024a).
Several emerging markets represent strong opportunities for future deployment. Brazil has more than 1,200 GW of estimated technical potential and is currently developing a national framework for offshore wind licensing. India plans to reach 37 GW by 2030, with auctions for 7.2 GW already scheduled (IRENA, 2024a). Other countries such as Vietnam and South Africa are beginning to position themselves as offshore wind markets (IRENA, 2024a).
- Integrate perspectives from key stakeholders into the decision-making process, including fisherfolk, coastal communities, port authorities, and other groups impacted by offshore wind development.
- Simplify and standardize offshore environmental licensing and marine spatial planning to accelerate project approvals while preserving biodiversity safeguards.
- Offer subsidies, grants, low-interest loans, preferential tax policies, and other incentives for developing and operating offshore wind farms and specialized port infrastructures.
- Develop regulations, standards, and codes to ensure quality equipment production and operation – ideally, before development and adoption to prevent accidents.
- Prioritize expansion of high-voltage subsea and coastal transmission infrastructure.
- Offer equipment testing and certification systems, market information disclosures, and assistance with onsite supervision.
- Set quotas for power companies and offer expedited permitting processes for renewable energy production, including offshore wind.
- Set adjustments for wind power on-grid pricing through mechanisms such as feed-in tariffs, renewable energy auctions, or other guaranteed pricing methods for wind energy.
- Provide financing for research and development to improve the performance of wind turbines, wind forecasting, and other related technology.
- Mandate onsite wind power forecasting and set standards for data integrity.
- Create training programs for engineers, operators, and other personnel.
- Coordinate voluntary agreements with industry to increase offshore wind capacity and power generation.
- Initiate public awareness campaigns focusing on wind turbine functionality, benefits, and any public concerns.
- Implement carbon taxes and use funds to de-risk offshore investments.
Further information:
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Floating offshore wind outlook. IRENA (2024)
- Government relations and public policy job function action guide. Project Drawdown (2022)
- Legal job function action guide. Project Drawdown (2022)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Work with external organizations to enter new markets and identify challenges early in development.
- Plan integrated offshore logistics to anticipate specialized vessel needs and port upgrades.
- Engage in marine spatial planning and cross-sector stakeholder dialogues to remove conflicts.
- Investigate community-led or cooperative offshore business models to improve local acceptance.
- Partner with academic institutions, technical institutions, vocational programs, and other external organizations to provide workforce development programs.
- Focus research and development efforts on increasing the productivity and efficiency of turbines, improving offshore design, and supporting technology such as wind forecasting.
- Utilize and integrate materials and designs that enhance recyclability and foster circular supply chains.
- Participate in voluntary agreements with government bodies to increase policy support for onshore wind capacity and power generation.
- Support and participate in public awareness campaigns focusing on wind turbine functionality, benefits, and any public concerns.
- Stay abreast of changing policies, regulations, zoning laws, tax incentives, and other related developments.
Further information:
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Floating offshore wind outlook. IRENA (2024)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Enter into Purchase Power Agreements (PPAs).
- Purchase high-integrity Renewable Energy Certificates (RECs).
- Invest in companies that provide offshore wind energy, transmission assets, shared port facilities, component manufacturers, or related technology, such as forecasting.
- Initiate or join voluntary agreements with national or international bodies and support industry collaboration.
- Develop workforce partnerships, offer employee scholarships, or sponsor training for careers in offshore wind or related professions such as marine engineering.
- Support long-term, stable contracts (e.g., power purchase agreements or CFDs) that de-risk investment in floating offshore wind foundation technologies, encouraging their development and deployment.
- Support community engagement initiatives in areas where you do business to educate and highlight the local economic benefits of offshore wind.
Further information:
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Floating offshore wind outlook. IRENA (2024)
- Climate solutions at work. Project Drawdown (2021)
- Drawdown-aligned business framework. Project Drawdown (2021)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Advocate for favorable policies and incentives for offshore wind energy development, such as financing, preferential tax policies, guaranteed pricing methods, quotas, community engagement, and comanagement models.
- Advocate for fair and transparent benefit-sharing with coastal communities affected by offshore wind.
- Help conduct proactive land use planning to avoid infrastructure or development projects that might interfere with protected areas, biodiversity, cultural heritage, or traditional marine uses.
- Propose or help develop regulations, standards, and codes to ensure quality equipment production and operation.
- Conduct open-access research to improve the performance of wind turbines, wind forecasting, and other related technology.
- Operate or assist with equipment testing and certification systems, market information disclosures, and onsite supervision.
- Create or assist with training programs for engineers, operators, and other personnel.
- Coordinate voluntary agreements between governments and industry to increase offshore wind capacity and power generation.
- Initiate public awareness campaigns focusing on wind turbine functionality, benefits, and any public concerns.
Further information:
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Floating offshore wind outlook. IRENA (2024)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Invest in the development of offshore wind farms.
- Invest in exchange-traded funds (ETFs) and environmental, social, and governance (ESG) funds that hold offshore wind companies in their portfolios.
- Consider offering flexible and low-interest loans for developing and operating offshore wind farms.
- Invest in supporting infrastructure such as utility companies, grid development, and access roads.
- Invest in component technology and related science, such as wind forecasting.
- Help develop insurance products tailored to marine risks and early-stage offshore projects.
- Invest in green bonds for companies developing offshore wind energy or supporting infrastructure.
- Align investments with existing public-private partnerships, voluntary agreements, or voluntary guidance that might apply in the location of the investment (including those that apply to biodiversity).
Further information:
- Floating offshore wind outlook. IRENA (2024)
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Provide catalytic financing for or help develop offshore wind farms.
- Award grants to improve supporting infrastructure such as utility companies, grid development, and access roads.
- Support the development of component technology and related science, such as wind forecasting.
- Fund updates to high-resolution marine wind atlases and oceanographic data systems.
- Foster cooperation between low- and middle-income countries for floating wind and deepwater innovation in emerging economies.
- Advocate for favorable policies and incentives for offshore wind energy development, such as financing, preferential tax policies, guaranteed pricing methods, and quotas.
- Propose, build capacity for, or help develop regulations, standards, and codes for marine permitting, offshore market design, equipment production, and operation.
- Initiate public awareness campaigns focusing on wind turbine functionality, benefits, and any public concerns.
- Facilitate partnerships to share wind turbine technology and best practices between established and emerging markets, promoting energy equity and access.
Further information:
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Floating offshore wind outlook. IRENA (2024)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Advocate for favorable policies and incentives for offshore wind energy development, such as financing, preferential tax policies, guaranteed pricing methods, and quotas.
- Propose or help develop regulations, standards, and codes to ensure quality equipment production and operation.
- Conduct research to improve the performance of wind turbines, wind forecasting, and other related technology.
- Initiate public awareness campaigns focusing on how wind turbines function, benefits, and why they are necessary, addressing any public concerns.
- Advocate for community engagement, respect for Indigenous rights, and preservation of cultural heritage and traditional ways of life to be included in wind power expansion efforts.
Further information:
- Floating offshore wind outlook. IRENA (2024)
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Improve the productivity and efficiency of wind turbines.
- Improve battery capacity for electricity storage.
- Develop more accurate, timely, and cost-effective means of offshore wind forecasting.
- Engineer new or improved means of manufacturing towers and components – ideally with locally sourced materials.
- Enhance design features such as wake steering, bladeless wind power, and quiet wind turbines.
- Optimize power output, efficiency, and deployment for vertical-axis turbines.
- Refine methods for retaining power for low-speed winds.
- Research and develop optimal ways offshore wind can provide habitats for marine species and reduce negative impacts on biodiversity; research total impact of offshore wind on local ecosystems.
- Develop strategies to minimize the impact of the noise of offshore wind turbines, both under and above water.
- Develop more accurate forecasting models for the performance of fixed-base and floating offshore wind turbines.
- Improve the aero-servo-elasticity of floating offshore wind turbines to accommodate more advanced components.
- Improve existing – or develop new – materials and designs that can withstand marine environments.
- Help develop designs and operational protocols to facilitate installation, minimize maintenance, improve safety, and reduce overall costs.
- Develop materials and designs that facilitate recycling and circulate supply chains.
- Innovate grid connections and transmission infrastructure for offshore and deep-sea wind farms.
- Improve smart grid connections to manage integrating offshore wind farms.
Further information:
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Floating offshore wind outlook. IRENA (2024)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Purchase high-integrity RECs, which track ownership of renewable energy generation.
- If your utility company offers transparent green pricing, which charges a premium to cover the extra cost of renewable energy, opt into it if possible.
- Conduct research on the benefits and development of wind energy and share the information with your friends, family, and networks.
- Stay informed about wind development projects that impact your community and support them when possible.
- Support the development of community wind cooperatives or shared ownership structures that allow local communities to directly benefit from offshore wind projects.
- Participate in public consultations, licensing hearings, and awareness campaigns focused on offshore wind projects.
- Advocate for favorable policies and incentives for offshore wind energy development, such as financing, preferential tax policies, guaranteed pricing methods, and quotas.
Further information:
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Floating offshore wind outlook. IRENA (2024)
- Socio-economic impact study of offshore wind. Sylvest (2020)
- Winds of progress: an in-depth exploration of offshore, floating, and onshore wind turbines as cornerstones for sustainable energy generation and environmental stewardship. Afridi et al. (2024)
- Assessment of factors affecting onshore wind power deployment in India. Das et al. (2020)
- Barriers to onshore wind farm implementation in Brazil. Farkat Diógenes et al. (2019)
- Barriers to onshore wind energy implementation: a systematic review. Farkat Diógenes et al. (2020)
- Overcoming barriers to onshore wind farm implementation in Brazil. Farkat Diógenes et al. (2020)
- Analysis of the promotion of onshore wind energy in the EU: Feed-in tariff or renewable portfolio standard? García-Álvarez et al. (2017)
- Global wind report. GWEC. (2024)
- Renewable energy policies: a comparative analysis of Nigeria and the USA. Idoko et al. (2024)
- Renewables 2022 – analysis and forecast to 2027. IEA (2022)
- Energy systems. IPCC (2022)
- Floating offshore wind outlook. IRENA (2024)
- Enabling frameworks for offshore wind scale up. IRENA (2023)
- Highlighting the need to embed circular economy in low carbon infrastructure decommissioning: the case of offshore wind. Jensen et al. (2020)
- Smart grids and renewable energy systems: Perspectives and grid integration challenges. Khalid (2024)
- Analysis and recommendations for onshore wind power policies in China. Li et al. (2018)
- Renewable energy resources, policies and gaps in BRICS countries and the global impact. Pathak et al. (2019)
- The need for comprehensive and well targeted instrument mixes to stimulate energy transitions: The case of energy efficiency policy. Rosenow et al. (2017)
- Grand challenges in the design, manufacture, and operation of future wind turbine systems. Veers et al. (2023)
Consensus of effectiveness in reducing GHG emissions: High
The scientific literature on offshore wind turbines reflects high consensus regarding their potential to significantly contribute to reducing GHG emissions and supporting the transition to sustainable energy. Technological advancements, decreasing costs, and increasing efficiency have positioned offshore wind as a key player in achieving global climate targets (Jansen et al., 2020; Letcher, 2023).
Offshore wind turbines reduce GHG emissions by displacing fossil fuel-based electricity generation, thus avoiding the release of CO₂ and other climate pollutants (Akhtar et al., 2024; Nagababu et al., 2023; Shawhan et al., 2025). The strong and consistent wind speeds found over ocean surfaces make offshore turbines especially efficient, with relatively high-capacity factors and increasingly competitive costs (Akhtar et al., 2021; Bosch et al., 2018; Zhou et al., 2022).
The technical potential of offshore wind refers to the maximum electricity generation achievable using available wind resources, constrained only by physical and technological factors. Scientific reviews highlight the significant technical potential of offshore wind to meet global electricity demand many times over, particularly through expansion in deep waters using floating technologies (de La Beaumelle et al., 2023). The World Bank estimates the global technical potential for fixed and floating offshore wind at approximately 71,000 GW globally using current technology (ESMAP, n.d.). With just 83 GW installed so far (GWEC, 2025), this indicates that offshore wind’s potential remains largely untapped.
The IPCC also sees offshore wind as a key low-emissions technology for achieving net-zero pathways and can be integrated into energy systems at scale with manageable economic and technical challenges (IPCC, 2023). While there is broad scientific agreement on the potential of offshore wind turbines to significantly reduce GHG emissions, there are also growing concerns, including uncertainties around floating platform scalability, ecological impacts, supply chain readiness, and long-term operations. Most of these issues are captured in the Risks & Trade-Offs section of this document.
The results presented in this document summarize findings from 17 peer reviewed academic papers (including 6 reviews and 11 research articles), 2 books and 11 agency or institutional reports, reflecting current evidence from representative regions around the world. We recognize this limited geographic scope creates bias, and hope this work inspires research and data sharing on this topic in underrepresented regions.
Deploy Onshore Wind Turbines

Mean Wind Speed at 100 meters above surface
This map shows average wind speeds at 100 meters above the surface, roughly the height of modern turbine towers. Wind speeds above 6 meters per second (m/s) are generally suitable for onshore wind farms, while 9–10 m/s and higher are considered excellent for power generation. The color scale highlights differences: lighter areas show weaker winds, while darker areas indicate strong winds that make onshore projects most efficient.
Global Wind Atlas (2025). Mean wind speed (version 4.0) [Data set]. Technical University of Denmark (DTU). Link to source: https://globalwindatlas.info/
Mean Wind Speed at 100 meters above surface
This map shows average wind speeds at 100 meters above the surface, roughly the height of modern turbine towers. Wind speeds above 6 meters per second (m/s) are generally suitable for onshore wind farms, while 9–10 m/s and higher are considered excellent for power generation. The color scale highlights differences: lighter areas show weaker winds, while darker areas indicate strong winds that make onshore projects most efficient.
Global Wind Atlas (2025). Mean wind speed (version 4.0) [Data set]. Technical University of Denmark (DTU). Link to source: https://globalwindatlas.info/
China, the United States, and Germany lead the market for installed onshore wind capacity, with 60% of global capacity in the United States and China. Installed capacity in China alone was greater than installed capacity across the rest of the world, excluding the United States (IRENA, 2024b).
Capacity factors vary geographically. In 2023, Brazil had the sixth-highest installed capacity globally (29,000 MW) and reported the highest capacity factors, 54%, while capacity factors in China were only 34%, below the global median capacity factor of 37% (IRENA, 2024). Higher capacity factors lead to better performance and increased electricity output from clean energy sources.
Regions with fossil fuel–dominated grid mixes use onshore wind turbines to diversify electricity sources and cut emissions from electricity generation. Although China led the onshore wind market in 2023, wind energy from both offshore and onshore turbines only accounted for 6% of electricity generation in Asia and the Pacific, while 56% came from coal (IEA, 2022). Germany and Spain had the highest installed capacity in Europe as of 2023 with combined onshore and offshore energy contributing 14% of total electricity generation, the highest percentage of any regional grid (IEA, 2022b).
While expanding onshore wind in established markets such as Europe is important, targeting regions with little to no electricity generation from renewables could have a larger impact on emissions reductions by providing a clean energy alternative to fossil fuels. It is also critical to ensure that as wind power expands into low- and middle-income countries, the transition to a more renewable electricity grid is done equitably and benefits local communities (Gorayeb et al., 2018).
In 2023, China, the United States, Brazil, Germany, and India cumulatively made up 82% of new global additions to onshore wind capacity (Global Wind Energy Council, 2024). Across all countries with new onshore wind installations in 2023, the median global trend was adding 39 MW of installed capacity per year, but expansion was unevenly distributed around the world. China and India were examples of rapidly expanding markets, with adoption trends of more than 32,000 MW per year and 2,600 MW per year, respectively. Despite a reduction in installations in 2023 compared with 2022, previous installations in the United States contributed to a high 10-year adoption trend of 8,800 MW per year (IRENA 2024). The slowest expanding countries, Denmark and the Netherlands, were adding 130–430 MW of onshore wind turbine capacity per year, most likely due to highly saturated existing markets for wind power.
There is ample technical potential for onshore wind adoption in Latin America, Africa, the Middle East, and the Pacific, although current installed capacity is relatively low in those regions (IRENA, 2024b; Wiser et al., 2011). The Global Wind Energy Council highlighted Australia, Azerbaijan, Brazil, China, Egypt, India, Japan, Kenya, the Philippines, Saudi Arabia, South Korea, the United States, and Vietnam as markets to watch for growth (GWEC 2024).
Deploy Concentrated Solar

Deploy Distributed Solar PV

Deploy Utility-Scale Solar PV

Deploy LED Lighting

We define the Deploy LED Lighting solution as replacing energy-inefficient light sources with light-emitting diodes (LEDs). Lighting accounts for 15–20% of electricity use in buildings. Using LEDs reduces the electricity that building lighting consumes, and thereby cuts GHG emissions from global electricity generation.
LED technology for lighting indoor and outdoor spaces is more energy-efficient than other lighting sources currently on the market (Zissis et al., 2021). This is because LEDs are solid-state semiconductors that emit light generated through a direct conversion of the flow of electricity (electroluminescence) rather than heating a tungsten filament to make it glow. More of the electrical energy goes to producing light in an LED lamp than in less-efficient alternative lighting technologies such as incandescent light bulbs or compact fluorescent lamps (CFLs) (Koretsky, 2021; Nair & Dhoble, 2021a). This difference offers significant energy-efficiency gains (see Figure 1).
Globally, lighting-related electricity consumption can account for as much as 20% of the total annual electricity used in buildings (Gayral, 2017; Pompei et al., 2020; Pompei et al., 2022). In 2022, the IEA estimated that total electricity consumption for lighting buildings globally was 1,736 TWh (Lane, 2023). Schleich et al. (2014) and others have argued that buildings consume more electricity for lighting due to a rebound effect when occupants perceive a lighting source as efficient. However, the growing adoption of LED lighting over the years has significantly optimized electricity consumption from building lighting, especially in residential buildings (Lane, 2023).
According to the Intergovernmental Panel on Climate Change (IPCC, 2006), generating electricity from fossil fuels emits CO₂, methane, and nitrous oxide. Replacing inefficient lamps with LEDs cuts these emissions by reducing electricity demand. LEDs often have a power rating of 4–10 W, which is 3–10 times lower than alternatives. LEDs also last significantly longer: With a lifespan that can exceed 25,000 hours, they vastly outperform incandescent bulbs (1,000 hours) and CFLs (10,000 hours), as shown in Figure 1. LED’s longevity leads to potential long-term savings due to fewer replacements. The amount of light produced per energy input (luminous efficacy) is up to 10 times greater than alternative lighting sources. This means substantially more lighting for less energy.
Figure 1. A comparison of light sources for building lighting (data from Lane, 2023; Mathias et al., 2023; Nair & Dhoble, 2021b; Xu, 2019).
Light source type | Power rating (watts) | Luminous efficacy (lumens/watt) | Lifespan (hours) |
---|---|---|---|
Incandescent | 40–100 | 10–15 | 1,000 |
CFL | 12–20 | 60–63 | 10,000 |
LED | 4–10 | 110–150 | 25,000–100,000 |
The International Energy Agency (IEA) and other international bodies report LED market penetration in terms of percentages of the global lighting market (Lane, 2023). We chose this approach to track the impact of adopting LEDs.
Would you like to help deploy LED lighting? Below are some ways you can make a difference, depending on the roles you play in your professional or personal life.
These actions are meant to be starting points for involvement and may or may not be the most important, impactful, or doable actions you can take. We encourage you to explore, get creative, and take a step that is right for you!
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Lead Fellow
Henry Igugu, Ph.D.
Contributors
Ruthie Burrows, Ph.D.
James Gerber, Ph.D.
Daniel Jasper
Alex Sweeney
Internal Reviewers
Aiyana Bodi
Hannah Henkin
Megan Matthews, Ph.D.
Ted Otte
Amanda D. Smith, Ph.D.
Christina Swanson, Ph.D.
Replacing 1% of the building lighting market with LED lamps avoids approximately 7.09 Mt CO₂‑eq/yr emissions on a 100-yr basis (Table 1) or 7.15 Mt CO₂‑eq/yr on a 20-yr basis.
We estimated this solution’s effectiveness (Table 1) by multiplying the global electricity savings intensity (kWh/%) by an emissions intensity for each GHG emitted (in g/kWh) due to electricity generation. Using the IEA (2024)’s energy balances data, we estimated emissions intensities of approximately 529 g/kWh for CO₂, 0.07 g/kWh for methane, and 0.01 g/kWh for nitrous oxide. Country-specific data were limited. Therefore, we developed the savings intensity using the IEA’s adoption trend (%/yr) and electricity consumption reduction (kWh/yr) for residential buildings globally (Lane, 2023). We then scaled up the savings intensity to represent all buildings (since LEDs are applicable in all types of buildings), but we could not find global data specifying the energy savings potential of converting the lighting market in nonresidential buildings to LEDs. Notably, artificial lighting’s energy consumption varies across building types (Moadab et al., 2021) and is typically greater in nonresidential buildings (Build Up, 2019). This presents some level of uncertainty, but also suggests that our estimates could be conservative – and that there is potential for even greater savings in nonresidential buildings.
Table 1. Effectiveness at reducing emissions.
Unit: t CO₂‑eq/% lamps LED/yr, 100-yr basis
Estimate | 7090000 |
Our lifetime initial cost estimate of switching 1% of the global building lighting market to LEDs is approximately US$1.5 billion. Because LEDs use less electricity than alternative lamps, they cost less to operate, resulting in operating costs of –US$1.3 billion/yr (i.e., cost savings). Building owners typically are not paid to use LED lighting; therefore, the revenue is zero. After we amortize the initial cost over 30 years, the net annual cost for this solution is –US$1.2 billion/yr globally. Thus, replacing other bulbs with LEDs saves money despite the initial cost.
We estimated the cost (Table 2) by first identifying initial and operating costs from studies that retrofitted buildings with LEDs, such as Periyannan et al. (2023), Hasan et al. (2025), and Forastiere et al. (2024). We then divided the costs by the impact of the LED retrofit on the amount of electricity consumed by lighting in each study and multiplied this by the global electricity savings intensity (kWh/%) we estimated during the effectiveness analysis. The result was the cost per percent of lamps in buildings converted to LED lighting (US$/% lamps LED).
We estimated the cost per unit climate impact by dividing the annual cost savings per adoption unit by the CO₂‑eq emissions reduced yearly per adoption unit (Table 2).
Table 2. Cost per unit climate impact.
Unit: 2023 US$/t CO₂‑eq, 100-yr basis
median | -175.0 |
Negative values reflect cost savings.
As LEDs became more common in building lighting, costs dropped significantly in recent years.
Trends based on LED adoption data (Lane, 2023) and the cost of LED lighting (Pattison et al., 2020) showed a 29.7% drop in cost as LED adoption doubled between 2016 and 2019.
The cost data we used to identify the learning curve for this solution (Table 3) are specific to the United States and limited to pre-2020. More recent LED cost data may show additional benefits with respect to cost, but this value may not be applicable for other countries. However, the cost data we analyzed do provide a useful sample of the broader LED cost-reduction trend.
Table 3. Learning rate: drop in cost per doubling of the installed solution base
Units: %
Estimate | 29.7 |
Speed of action refers to how quickly a climate solution physically affects the atmosphere after it is deployed. This is different from speed of deployment, which is the pace at which solutions are adopted.
At Project Drawdown, we define the speed of action for each climate solution as emergency brake, gradual, or delayed.
Deploy LED Lighting is a GRADUAL climate solution. It has a steady, linear impact on the atmosphere. The cumulative effect over time builds as a straight line.
Our effectiveness analysis is based on the current state of LED technology. If the adoption ceiling is attained, further improvements to the amount of light that LEDs generate per unit electricity could enhance the solution’s impact through further reductions in electricity use.
The rebound effect – where building occupants use more lighting in response to increased energy-efficiency of lamps – is a well-established concern (Saunders and Tsao, 2012; Schleich et al., 2014). We attempted to address this concern by using IEA data on actual electricity consumption originating from building lighting to determine both its effectiveness and cost implications (Lane, 2023).
We did not fully account for the cost savings that potentially arise from fewer bulb replacements, since LEDs may replace various types of lamps. Because LEDs last significantly longer than all alternative lamp technologies, building owners may require fewer replacements when using LED lamps compared with other lighting sources.
Lane (2023) found that LED lamps represented 50.5% of the lighting market globally for residential buildings in 2022, but does not provide adoption data specific to nonresidential buildings. Studies that provide global or geographically segmented LED adoption data for all building types are also limited. Therefore, we assume 50.5% to be representative of LED adoption across all buildings globally (Table 4).
Other studies highlight adoption levels across various countries. The data captured in these studies and reports provide context with specific adoption levels from different regions (see Geographic Guidance).
The IEA and U.S. Department of Energy (DOE) report that LEDs are increasingly the preferred choice of homeowners and the general building lighting market. This preference is evident in the growing market share of LED lamps sold and installed annually (Lane, 2023; Lee et al., 2024).
In general, the solution’s current adoption globally is substantial, and we recognize that some countries possess more room for the solution to scale. While adoption barriers vary across regions, many countries are establishing lighting standards to drive LED adoption, especially across Africa [(IEA, 2022; United Nations Industrial Development Organization (UNIDO), 2021].
Table 4. Current (2022) adoption level.
Units: % lamps LED
Estimate | 50.5 |
Adoption of LEDs has grown approximately 3.75%/yr over the past two decades.
Lane (2023) found that the proportion of lamps sold annually for building lighting that are LEDs grew from 1.1% in 2010 to 50.5% in 2022 (Figure 2). We estimated the adoption trend (Table 5) by determining the percentage growth between successive years, and calculating the variances.
Figure 2. Trend in LED adoption between 2010 and 2022 (adapted from Lane, 2023).
Source: Lane, K. (2023, 11 July 2023). Lighting. International Energy Agency (IEA). Retrieved 13 December 2024 from https://www.iea.org/energy-system/buildings/lighting
Data on the growth of LEDs across regional building lighting markets are limited. Lee et al. (2024)’s analysis of the U.S. lighting market found 46.5% growth 2010–2020, which translates to 4.65% annually. Zissis et al. (2021) reported 26% growth for France for 2017–2020, which averages 8.67% annually.
Table 5. 2010–2022 adoption trend.
Units: % lamps LED market share growth/yr
25th percentile | 2.85 |
mean | 4.12 |
median (50th percentile) | 3.75 |
75th percentile | 5.4 |
The adoption ceiling (Table 6) is 100%, meaning all lamps in buildings are LEDs. Lane (2023) projects 100% LED market penetration by 2030. If current adoption trends continue, 100% LED adoption is a practical and achievable upper limit. However, countries will need to overcome challenges such as regulatory enforcement, financial, and technology access issues, while preventing the entrance of inferior quality LEDs into their lighting market (IEA, 2022).
Table 6. Adoption ceiling
Units: % lamps LED
Estimate | 100 |
We estimate a low achievable adoption scenario of 87% based on Statista’s projections about LED lighting market penetration by 2030 (Placek, 2023). The values were similar in Zissis et al. (2021).
For the high achievable scenario, we projected 10 years beyond the 2022 adoption level using the mean adoption trend of 4.12%/yr. This translates to a 41% growth on top of the current adoption level of 50.5%, summing up to a 92% LED adoption level (Table 7).
Table 7. Range of achievable adoption levels.
Unit: % lamps LED
Current Adoption | 50.5 |
Achievable – Low | 87 |
Achievable – High | 92 |
Adoption Ceiling | 100 |
We estimated that current adoption cuts about 0.36 Gt CO₂‑eq emissions on a 100-yr basis compared with the previous alternative lighting sources (Table 8). The low achievable adoption scenario of 87% LED lamps could cut emissions 0.62 Gt CO₂‑eq/yr due to reduced electricity consumption, while a high achievable adoption scenario of 92% LED lamps could cut emissions 0.65 Gt CO₂‑eq/yr. If the adoption ceiling of 100% LEDs for lighting buildings is reached, we estimate that 0.71 Gt CO₂‑eq/yr could be avoided (Table 8).
LED lighting could further cut electricity consumption as LED technology continues to improve. However, the technology’s future climate impacts will depend on the emissions of future electricity-generation systems.
Table 8. Climate impact at different levels of adoption.
Unit: Gt CO₂‑eq/yr, 100-yr basis
Current Adoption | 0.36 |
Achievable – Low | 0.62 |
Achievable – High | 0.65 |
Adoption Ceiling | 0.71 |
Income and Work
Because LEDs use less electricity than fluorescent and incandescent light bulbs (Khan & Abas, 2011), households and businesses using LED technology can save money on electricity costs. The payback period for the initial investment from lower utility bills is about one year for residential buildings and about two months for commercial buildings (Amann et al., 2022). LED lighting can contribute to savings by minimizing energy demand for cooling, since LEDs emit less heat than fluorescent and incandescent bulbs (Albatayneh et al., 2021; Schratz et al., 2016). However, it could also lead to a greater need for space heating in some regions. LED lights also last longer than alternative lighting technologies, which can lead to lower maintenance costs (Schratz et al., 2016).
Health
Reductions in air pollution due to LED lighting’s lower electricity demand decrease exposures to pollutants such as mercury and fine particulate matter generated from fossil fuel-based power plants, improving the health of nearby communities [Environmental Protection Agency (EPA), 2024]. These pollutants have been linked to increased morbidity from cardiovascular and respiratory disease, asthma, infections, and cancer, and to increased risk of mortality (Gasparotto & Martinello, 2021; Henneman et al., 2023). Because LEDs do not contain mercury, they can mitigate small health risks associated with mercury exposure when fluorescent light bulbs break (Bose-O’Reilly et al., 2010; Sarigiannis et al., 2012). Switching to LEDs can also enhance a visual environment and improve occupants’ well-being, visual comfort, and overall productivity when lamps with the appropriate lighting quality and correlated color temperature are selected (Fu et al., 2023; Iskra-Golec et al., 2012; Nair & Dhoble, 2021b).
Air and Water Quality
The lower electricity demand of LEDs could help reduce emissions from power plants and improve air quality (Amann et al., 2022). Additionally, LEDs can mitigate small amounts of mercury found in fluorescent lights (Amann et al., 2022). Mercury contamination from discarded bulbs in landfills can leach into surrounding water bodies and accumulate in aquatic life. LEDs also have longer lifespans than fluorescent and incandescent bulbs (Nair & Dhoble, 2021b) which can reduce the amount of discarded bulbs and further mitigate environmental degradation from landfills.
We found limited data indicating risks with choosing LEDs over other lighting sources. Concerns about eye health raised in the early days of LED adoption (Behar-Cohen et al., 2011) have been allayed by studies that found that LEDs do not pose a greater risk to the eye than comparable lighting sources (Moyano et al., 2020).
LED manufacturing uses metals like gold, indium, and gallium (Gao et al., 2022). This creates environmental risks due to mining (Xiong et al., 2023) and makes LED supply chains susceptible to macroeconomic uncertainties (Lee et al., 2021). With growing adoption of LED lights, there is also the risk of greater electronic waste at the end of the LED’s lifespan. Therefore, recycling is increasingly important (Cenci et al., 2020).
Reinforcing
Other lighting sources such as incandescent lamps are known to produce some heat, thus adding to the cooling load. LEDs are more energy-efficient, and therefore could reduce the cooling requirements of a space.
Competing
Some studies demonstrate an increase in the indoor heating requirements when switching to LED lighting from other lighting sources, such as incandescent lamps, that produce more heat than LEDs. The difference is often small, but worth taking into account when adopting LEDs in a building with previously energy-inefficient lighting.
Solution Basics
% lamps LED
Climate Impact
CO₂, CH₄, N₂O, BC
LED lamp manufacturing creates more emissions than manufacturing other types of lamps. For example, Zhang et al. (2023) compared the manufacturing emissions of a 12.5W LED lamp with a 14W CFL and a 60W incandescent bulb. These light sources provided similar levels of illumination (850–900 lumens). The production of one LED bulb resulted in 9.81 kg CO₂‑eq emissions, while the CFL and incandescent resulted in 2.29 and 0.73 kg CO₂‑eq emissions, respectively. However, LEDs are preferred because their longevity results in fewer LED lamps required to provide the same amount of lighting over time. LEDs can last 25 times longer than incandescent lamps with an identical lumen output (Nair & Dhoble, 2021b; Xu, 2019; Zhang et al., 2023).
Percentage of lamps that are LEDs, circa 2020
The percentage of lamps used to light buildings that are LEDs varies around the world, with limited data available on a per-country basis.
Miah, M. A. R., & Kabir, R. (2023). Energy savings forecast for solid-state lighting in residential and commercial buildings in Bangladesh. IEEE PES 15th Asia-Pacific Power and Energy Engineering Conference (APPEEC), pp. 1-6, Link to source: https://doi.org/10.1109/APPEEC57400.2023.10561921
U.S. Department of Energy (2024). 2020 U.S. lighting market characterization. Link to source: https://www.energy.gov/sites/default/files/2024-08/ssl-lmc2020_apr24.pdf
World Furniture Online (2017). The lighting fixtures market in Australia and New Zealand. Link to source: https://www.worldfurnitureonline.com/report/the-lighting-fixtures-market-in-australia-and-new-zealand/
Zissis, G., Bertoldi, P., & Serrenho, T. (2021). Update on the status of LED-lighting world market since 2018. Publications Office of the European Union. Link to source: https://publications.jrc.ec.europa.eu/repository/handle/JRC122760
Percentage of lamps that are LEDs, circa 2020
The percentage of lamps used to light buildings that are LEDs varies around the world, with limited data available on a per-country basis.
Miah, M. A. R., & Kabir, R. (2023). Energy savings forecast for solid-state lighting in residential and commercial buildings in Bangladesh. IEEE PES 15th Asia-Pacific Power and Energy Engineering Conference (APPEEC), pp. 1-6, Link to source: https://doi.org/10.1109/APPEEC57400.2023.10561921
U.S. Department of Energy (2024). 2020 U.S. lighting market characterization. Link to source: https://www.energy.gov/sites/default/files/2024-08/ssl-lmc2020_apr24.pdf
World Furniture Online (2017). The lighting fixtures market in Australia and New Zealand. Link to source: https://www.worldfurnitureonline.com/report/the-lighting-fixtures-market-in-australia-and-new-zealand/
Zissis, G., Bertoldi, P., & Serrenho, T. (2021). Update on the status of LED-lighting world market since 2018. Publications Office of the European Union. Link to source: https://publications.jrc.ec.europa.eu/repository/handle/JRC122760
The Deploy LED Lighting solution can be equally effective at reducing electricity use across global regions because the efficiency gained by replacing other bulbs with LEDs is functionally identical. However, its climate impact will vary with the emissions intensity of each region’s electricity grid. Secondary considerations associated with uptake of LED lighting also can vary with climate and hence geography. In particular, the decrease in heating associated with LED lighting can reduce demands on air conditioning, leading to increased incentive for solution uptake in warmer climates.
Historically, a few countries typically account for the bulk of LEDs purchased. For example, 30% of the 5 billion LEDs sold globally in 2016 were sold in China. In the same period, North America accounted for 15% while Western Europe, Japan, and India represented 11%, 10%, and 8% of the LEDs sold, respectively (Kamat et al., 2020; U.S. DOE, 2016). Essentially, the growing sales of LEDs drove global adoption levels from 17.6% of the building lighting market in 2016 to 50.5% in 2022 (Lane, 2023). However, current adoption still varies considerably around the world. For instance, Lee et al. (2024) reported that LED market penetration in the U.S. was 47.5% in 2020, compared with 43.3% globally in the same period (Lane, 2023). Meanwhile, LED adoption in France was 35% in 2017, and countries in the Middle East such as the United Arab Emirates, Saudi Arabia, and Turkey had over 70% LED adoption that same year; residential buildings in the United Kingdom had 13% LED adoption in 2018, while Japan had 60% LED adoption as of 2019 (Zissis et al., 2021). This demonstrates potential to scale LED adoption in the future, especially in low- and middle-income countries where the bulk of new building occurs (IEA, 2023).
- Use regulations to phase out and replace energy-inefficient lighting sources with LEDs.
- Set regulations that encourage sufficient lighting to limit the overuse of LEDs (or rebound effects).
- Require that public lighting use LEDs.
- Use financial incentives such as tax breaks, subsidies, and grants to facilitate the transition to LEDs.
- Revise building energy-efficiency standards to reflect energy savings of LEDs.
- Develop production standards and mandate labeling for LEDs.
- Build sufficient inspection capacity for LED manufacturers and penalize noncompliance with standards.
- Use energy-efficiency purchase agreements to help support utility companies during the transition to LED lighting.
- Invest in research and development that improves the cost and efficiency of LED lighting.
- Develop a certification program for LED lighting.
- Create exchange programs or buy-back programs for inefficient light bulbs.
- Start demonstration projects to promote LED lighting.
- Join, support, or create educational programs that raise public awareness about the cost savings and energy-efficiency gains associated with LEDs.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Government relations and public policy job function action guide. Project Drawdown (2022)
- Legal job function action guide. Project Drawdown (2022)
- Take advantage of or advocate for financial incentives such as tax breaks, subsidies, and grants to facilitate the production of LED lighting.
- Help develop circular supply chains in renovating, remanufacturing, reusing, and redistributing materials.
- Invest in research and development to improve efficiency and cost of LEDs.
- Adhere to, or advocate for, national LED standards.
- Develop, produce, and sell LED lighting that imitates incandescent or other familiar lighting.
- Consider bundling services with retrofitting companies and collaborating with utility companies to offer rebates or other incentives.
- Improve self-service of LEDs by reducing obstacles to installation and ensuring LEDs can be easily replaced.
- Help create positive perceptions of LED lighting by showcasing usage, cost savings, and emissions reductions.
- Create feedback mechanisms, such as apps that alert users to real-time benefits such as energy and cost savings.
- Start demonstration projects to promote LED lighting.
- Join, support, or create educational programs that raise public awareness about the cost savings and energy-efficiency gains associated with LEDs.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Retrofit existing operations for LEDs, replace inefficient bulbs, and purchase only LEDs going forward.
- Help develop circular supply chains in renovating, remanufacturing, reusing, and redistributing LED lighting materials.
- Take advantage of financial incentives such as tax breaks, subsidies, and grants to facilitate the transition to LED lighting.
- Invest in research and development that improves the cost and efficiency of LED lighting.
- Join, support, or create educational programs that raise public awareness about the cost savings and energy-efficiency gains associated with LEDs.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Retrofit existing operations for LEDs, replace inefficient bulbs, and purchase only LEDs going forward.
- Help develop circular supply chains in renovating, remanufacturing, reusing, and redistributing LED lighting materials.
- Take advantage of, or advocate for, financial incentives such as tax breaks, subsidies, and grants to facilitate the transition to LED lighting.
- Advocate for regulations to phase out and replace energy-inefficient lighting sources with LEDs.
- Advocate for production standards and labeling for LEDs.
- Call for regulations that encourage sufficient lighting to limit the overuse of LEDs (or rebound effects).
- Start demonstration projects to promote LED lighting.
- Help develop, support, or administer a certification program for LED lighting.
- Create national catalogs of LED manufacturers, suppliers, and retailers.
- Join, support, or create educational programs that raise public awareness about the cost savings and energy-efficiency gains associated with LEDs.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Retrofit existing operations for LEDs, replace inefficient bulbs, and purchase only LEDs going forward.
- Take advantage of financial incentives such as tax breaks, subsidies, and grants to facilitate the transition to LED lighting.
- Invest in LED manufacturers, supply chains, and supportive industries.
- Support research and development to improve the efficiency and cost of LEDs.
- Invest in LED companies.
- Fund companies that provide retrofitting services (energy service companies).
- Invest in businesses dedicated to advancing LED use.
- Ensure portfolio companies do not produce or support non-LED lighting supply chains.
- Join, support, or create educational programs that raise public awareness about the cost savings and energy-efficiency gains associated with LEDs.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Retrofit existing operations for LEDs, replace inefficient bulbs, and purchase only LEDs going forward.
- Take advantage of financial incentives such as tax breaks, subsidies, and grants to facilitate the transition to LED lighting.
- Provide financing such as low-interest loans, grants, and micro-grants to help accelerate LED adoption.
- Fund companies that provide retrofitting services (energy service companies).
- Advocate for regulations to phase out energy-inefficient lighting sources and replace them with LEDs.
- Call for regulations that encourage sufficient lighting to limit the overuse of LEDs (or rebound effects).
- Start demonstration projects to promote LED lighting.
- Help develop, support, or administer a certification program for LED lighting.
- Create national catalogs of LED manufacturers, suppliers, and retailers.
- Join, support, or create educational programs that raise public awareness about the cost savings and energy-efficiency gains associated with LEDs.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Retrofit buildings for LED lighting, replace inefficient bulbs, and purchase only LEDs going forward.
- Help create positive perceptions of LED lighting by highlighting your personal usage, cost and energy savings, and emissions reductions.
- Help develop circular supply chains in renovating, remanufacturing, reusing, and redistributing materials.
- Take advantage of, or advocate for, financial incentives such as tax breaks, subsidies, and grants to facilitate the transition to LED lighting.
- Advocate for regulations to phase out energy-inefficient lighting sources and replace them with LEDs.
- Advocate for LED standards.
- Advocate for regulations that encourage sufficient lighting and guard against overuse of LEDs (or rebound effects).
- Start demonstration projects to promote LED lighting.
- Help develop, support, or administer a certification program for LED lighting.
- Create national catalogs of LED manufacturers, suppliers, and retailers.
- Join, support, or create educational programs that raise public awareness about the cost savings and energy-efficiency gains associated with LEDs.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Develop circular supply chains in renovating, remanufacturing, reusing, and redistributing materials.
- Improve the efficiency and cost of LEDs.
- Improve LED lighting to imitate familiar lighting, offer customers settings, and augment color rendering.
- Improve self-service of LEDs by reducing obstacles to installation and ensuring LEDs can be replaced individually.
- Help develop standards for LEDs.
- Create feedback mechanisms, such as apps that alert users to real-time benefits such as energy and cost savings.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Retrofit for LEDs, replace inefficient bulbs, and purchase only LEDs going forward.
- Help create positive perceptions of LED lighting by highlighting your personal usage, cost and energy savings, and emissions reductions.
- Help develop circular supply chains in renovating, remanufacturing, reusing, and redistributing materials.
- Take advantage of or advocate for financial incentives such as tax breaks, subsidies, and grants to facilitate the transition to LED lighting.
- Advocate for regulations to phase out and replace energy-inefficient lighting sources with LEDs.
- Advocate for LED standards.
- Advocate for regulations that encourage sufficient lighting to limit the overuse of LEDs (or rebound effects).
- Join, support, or create educational programs that raise public awareness about the cost savings and energy-efficiency gains associated with LEDs.
Further information:
- Lighting. International Energy Agency (2023)
- Energy efficient LED lighting-guide: a guide for business. Sustainable Energy Authority of Ireland (n.d.)
- Accelerating the global adoption of energy-efficient lighting. United for Energy Efficiency (2017)
- Study on policy and measures, standards and certification system of LED lighting industry in Malaysia. Ding et al. (2020)
- Study on policy and standard system of LED lighting industry in EU. Ding et al. (2020)
- LEDs for lighting: basic physics and prospects for energy savings. Gayral (2017)
- Lighting. International Energy Agency (2023)
- Phasing out an embedded technology: insights from banning the incandescent light bulb in Europe. Koretsky (2021)
- Role of street-level policy entrepreneurs in sustainability transition: evidence from India’s transition to LED lighting. Sharma (2024)
- Policy performance of green lighting industry in China: a DID analysis from the perspective of energy conservation and emission reduction. Wang et al. (2020)
Consensus of effectiveness in reducing GHG emissions from electricity generation: High
Using LEDs significantly minimizes the electricity required to light buildings, thereby reducing GHG emissions from electricity generation. Many countries are phasing out other lighting sources to reduce GHG emissions (Lane, 2023).
The IEA reported that global adoption of LEDs drove a nearly 30% reduction in annual electricity consumption for lighting in homes between 2010 and 2022 (Lane, 2023). Hasan et al. (2025) indicated that LEDs could reduce the lighting energy usage of buildings (and their resulting GHG emissions) in Bangladesh by 50%. Periyannan et al. (2023) recorded significant electricity savings after evaluating the impact of retrofitting hotels in Sri Lanka with LEDs. Forastiere et al. (2024)’s analysis of the retail buildings in Italy showed an 11% reduction in energy consumption from replacing other lamps with LEDs. Booysen et al., (2021) also achieved significant energy reduction with lighting retrofits in South African educational buildings.
The results presented in this document summarize findings from six original studies and three public sector/multilateral agency reports, which collectively reflect current evidence both globally and from six countries on four different continents. We recognize this limited geographic scope creates bias, and hope this work inspires research and data sharing on this topic in underrepresented regions.
Deploy District Cooling

Deploying district cooling is the process of connecting multiple buildings in a dense area to a single, highly efficient source of cooling. The increased energy efficiency and reduction in use of high global warming potential refrigerants can translate into substantial emissions reductions and lower operating expenses. District cooling systems that integrate cool thermal storage have the potential to significantly reduce electricity demand during peaks when demand for cooling can strain electricity grids. However, the high upfront cost, long-term planning, and large number of stakeholders involved make this a challenging solution, especially in low- and middle-income countries where new demand for cooling is growing. Lack of publicly available data also makes this potential solution difficult to explore in greater depth. Based on our assessment, we will “Keep Watching” this potential solution.
What is our assessment?
Based on our analysis, deploying district cooling is a potentially impactful option for reducing emissions from buildings as demand for cooling continues to grow. However, upfront cost and project complexity are major barriers to deployment, and a lack of data is a barrier to deeper analysis. This potential solution is therefore classified as “Keep Watching.”
Plausible | Could it work? | Yes |
---|---|---|
Ready | Is it ready? | Yes |
Evidence | Are there data to evaluate it? | No |
Effective | Does it consistently work? | Yes |
Impact | Is it big enough to matter? | Yes |
Risk | Is it risky or harmful? | No |
Cost | Is it cheap? | No |
What is it?
District cooling consists of a centralized cooling system that distributes chilled water to multiple buildings through a network of insulated underground pipes. The cooled water absorbs heat from the buildings, replacing the need for air conditioners or chillers in each building. District cooling can produce cooled water from a variety of renewable sources, such as renewable electricity, solar cooling, and natural cooling sources, including seawater, lakewater, rivers, and groundwater. It can even use waste heat from industry to generate cooling. Many systems include thermal energy storage facilities where frozen water, cold water, or phase change materials are cooled when electricity prices are low for use during peak hours to save costs and reduce strain on the electricity grid. District cooling is best applied to high-density areas and can be combined with district heating to provide year-round conditioning.
Does it work?
When district cooling replaces conventional standalone systems in residential and commercial buildings, it can reduce emissions through two main mechanisms. First, many district cooling systems exchange heat with natural sources of cooling such as oceans, deep lakes, and rivers, a process that can be many times more energy efficient than conventional cooling systems. This results in reduced energy use and reduced emissions from the electricity used to operate the system. Second, district cooling systems can reduce the use of refrigerants with high global warming potentials, which can leak at all stages of a cooling system’s lifespan. When replacing standalone systems, district cooling can significantly reduce the total volume of refrigerants used. In addition, some district cooling systems do not use any refrigerants at all (e.g., exchanging heat with ocean or deep lake water), and many are able to use refrigerants with low global warming potentials. For instance, the Zuidas International Business Hub in the Netherlands adopted a district cooling system that uses lake cooling combined with chillers, reducing emissions by 75% compared to conventional cooling systems.
Why are we excited?
According to the International Energy Agency (IEA), global carbon emissions from cooling buildings reached 1.02 Gt CO₂‑eq in 2022. The majority of emissions associated with cooling are from standalone systems such as window air conditioners and chillers that serve a single building. District cooling systems are relatively rare at this time, with most capacity found in the United States and the Gulf Arab States. While existing district cooling systems can be made less emitting, there may be greater potential for new systems because demand for cooling is increasing by ~4%/yr as global temperatures rise and as standards of living improve in regions that experience high temperatures. This is raising concerns about the new electricity generating capacity needed when demand peaks on very hot days. District cooling systems can reduce overall energy use for cooling relative to standalone systems, and when paired with cool thermal storage, can significantly reduce demand during peak hours and on hot days. Building owners can enjoy less maintenance costs, more reliable cooling, and increased floor space when district cooling systems replace bulkier standalone cooling systems. In dense areas with good access to natural or low-cost cooling sources, district cooling systems can cost less to operate and offer lifetime savings despite the higher upfront costs.
Why are we concerned?
Deploying district cooling systems has high upfront costs and requires extensive planning and coordination among a wide range of stakeholders. These projects can face challenges in getting financing due to a lack of confidence for both investors and customers, uncertainty about future loads, and regulatory barriers. These can be especially challenging in low- and middle-income countries where demand for cooling is growing rapidly. Many buildings are likely to invest in standalone systems in the near term, locking them into alternatives and weakening the business case for district systems in the area. Meanwhile, the full potential is difficult to assess due to a lack of data on district cooling systems globally.
Al-Nini, A., Ya, H. H., Al-Mahbashi, N., & Hussin, H. (2023). A Review on Green Cooling: Exploring the Benefits of Sustainable Energy-Powered District Cooling with Thermal Energy Storage. Sustainability, 15(6), 5433. Link to source: https://doi.org/10.3390/su15065433
Delmastro, C., Martinez-Gordon, R., Lane, K., Voswinkel, F., Chen, O., & Sloots, N. (2023). Space cooling. IEA. Link to source: https://www.iea.org/energy-system/buildings/space-cooling
Energy Sector Management Assistance Program. (2020). Primer for space cooling (Knowledge Series). World Bank. Link to source: https://documents1.worldbank.org/curated/en/131281601358070522/pdf/Primer-for-Space-Cooling.pdf
Eveloy, V., & Ayou, D. S. (2019). Sustainable District Cooling Systems: Status, Challenges, and Future Opportunities, with Emphasis on Cooling-Dominated Regions. Energies, 12(2), 235. Link to source: https://doi.org/10.3390/en12020235
IEA. (2018). The future of cooling: Opportunities for energy-efficient air conditioning. Link to source: https://iea.blob.core.windows.net/assets/0bb45525-277f-4c9c-8d0c-9c0cb5e7d525/The_Future_of_Cooling.pdf
IEA District Heating and Cooling. (2019). Sustainable district cooling guidelines. International Energy Agency. Link to source: https://iea.blob.core.windows.net/assets/a5da464f-8310-4e0d-8385-0d3647b46e30/2020_IEA_DHC_Sustainable_District_Cooling_Guidelines_new_design.pdf
International district energy association. (2008). District cooling best practice guide, first edition. Link to source: https://higherlogicdownload.s3.amazonaws.com/DISTRICTENERGY/998638d1-8c22-4b53-960c-286248642360/UploadedImages/Conferences/District_Cooling_Best_Practice_Guide.pdf
Lienard, V. (n.d.). How can we cool our cities? Euroheat and Power. Retrieved August 18, 2025, from Link to source: https://energy-cities.eu/wp-content/uploads/2025/03/District-cooling_Euro-Heat-and-Power.pdf
Voswinkel, F., Senat, D., Valle, N. D., D’Angiolini, G., & Callioni, F. (2025, July 28). Staying cool without overheating the energy system. IEA. Link to source: https://www.iea.org/commentaries/staying-cool-without-overheating-the-energy-system
Werner, S. (2017). International review of district heating and cooling. Energy, 137, 617–631. Link to source: https://doi.org/10.1016/j.energy.2017.04.045
Lead Fellow
- Heather McDiarmid, Ph.D.
Internal Reviewers
- Christina Swanson, Ph.D.
Use Cool Roofs

Use Heat Pumps

Heat pumps use electricity to efficiently move heat from one place to another. This solution focuses on the replacement of fossil fuel–based heating systems with electric heat pumps. Heat pumps are remarkably efficient because they collect heat from the outside air, ground, or water using a refrigerant and use a pump to move the heat into buildings to keep them warm in colder months. Heat pumps typically replace heating systems such as boilers, furnaces, and electric resistance heaters. Many will also replace air conditioners, because the same pump can move heat out of a building in warmer months.
Heat pumps use a refrigerant cycle to move heat. When the liquid refrigerant enters a low pressure environment, it absorbs heat from the surrounding air (air-source heat pumps), water, or ground (ground-source heat pumps) as it evaporates. When the refrigerant vapor is compressed, it condenses back into a liquid, releasing the stored heat into the building. By passing the refrigerant through this cycle, a heat pump can move heat from outside to inside a building.
Absorbing heat from the outside gets more difficult as temperatures drop. However, modern cold-climate heat pumps are designed to work effectively at temperatures approaching –30 °C (–22 °F) (Gibb et al., 2023). The freezer in your home uses the same technology, moving heat out of the cold box into the warm room to keep your food frozen. In most systems, the refrigerant cycle in a heat pump can be reversed in warmer months, moving heat out of a building to ensure its occupants are comfortable year-round.
Heat pumps are very efficient at using electricity for heating. This is because they move heat rather than generating heat (e.g., by combustion). For example, a heat pump may have a seasonal coefficient of performance (SCOP) of 3, meaning it can move an average of three units of heat energy for every unit of electrical energy that it consumes. Conventional combustion and electric resistance heaters cannot produce more than one unit of heat energy for every unit of fuel energy or electrical energy provided.
Heat pump systems may be all-electric or hybrid, where a secondary fossil fuel-based heating system takes over in colder weather.
A heat pump’s potential to reduce GHG emissions depends on the heating source it replaces and the emissions intensity of the electricity used to run it. When heat pumps replace fossil fuel-based heating, they displace the GHG emissions – primarily CO₂ – generated when the fuel is burned. When replacing electric resistance heaters, heat pumps reduce the GHG emissions from the electricity to power the system because heat pumps are much more energy efficient. As electrical grids decarbonize, the GHG emissions from operating heat pumps will decrease.
All-electric heat pumps provide the most climate benefit because they can be powered with clean energy, but hybrid heat pumps also play an important emissions-reduction role. Hybrids consist of a smaller electric heat pump system that switches to fuel-based heating systems in colder weather. They may be attractive due to lower up-front costs and because they have lower peak power demand on cold days, but hybrids also have a smaller emissions impact. Our cost and emissions analyses assumed all-electric air-source heat pumps, while the data used in the adoption analysis included all types of heat pumps with the expectation that all-electric versions will dominate in the longer term.
In this analysis, we calculated effectiveness and cost outcomes from specific countries with high heat-pump adoption (European countries, Canada, the United States, Japan, and China) to avoid comparing research studies that use different assumptions. The analysis used global assumptions for heating system efficiency: 90% for fueled systems (International Gas Union, 2019), 100% for electric resistance (U.S. Department of Energy [U.S. DOE], n.d.), and SCOP of 3 for heat pumps (Crownhart, 2023). We also assumed all existing fueled systems use natural gas, which is currently the dominant fossil fuel used for space heating globally (International Energy Agency [IEA], 2023b). The analysis did not include emissions or costs from cooling but did assume the heat pump is replacing both a heating and cooling system.
The cost and effectiveness analyses focused on residential heating systems due to availability of data and also because large variations in the cost and size of commercial systems make it more challenging to estimate their global impacts. Commercial heating systems are typically larger than residential systems, and their emissions impacts are expected to be proportionally greater per unit. Cost savings may be different due the greater complexity of heating and cooling systems (Tejani & Toshniwal, 2023). Available data on heat pump adoption, on the other hand, typically include both residential and commercial units. Our adoption analysis therefore included both residential and commercial buildings, with greater adoption assumed in the residential sector.
Air-Conditioning, Heating, and Refrigeration Institute. (2025). AHRI releases November 2024 U.S. heating and cooling equipment shipment data. Link to source: https://www.ahrinet.org/sites/default/files/Stat%20Release%20Nov%2024/November%202024%20Statistical%20Release.pdf
Asahi, T. (2023, July 3). The role of heat pumps toward decarbonization [PowerPoint slides]. Japan Refrigeration and Air Conditioning Industry Association. Link to source: https://www.jraia.or.jp/english/relations/file/2023_July_OEWG45_JRAIA_side_event_Presentation_4.pdf
Benz, S. A., & Burney, J. A. (2021). Widespread race and class disparities in surface urban heat extremes across the United States. Earth’s Future, 9(7), Article e2021EF002016. Link to source: https://doi.org/10.1029/2021EF002016
Bloess, A., Schill, W.-P., & Zerrahn, A. (2018). Power-to-heat for renewable energy integration: A review of technologies, modeling approaches, and flexibility potentials. Applied Energy, 212, 1611–1626. Link to source: https://doi.org/10.1016/j.apenergy.2017.12.073
Canadian Climate Institute. (2023). Heat pumps pay off [Report]. Link to source: https://climateinstitute.ca/wp-content/uploads/2023/09/Heat-Pumps-Pay-Off-Unlocking-lower-cost-heating-and-cooling-in-Canada-Canadian-Climate-Institute.pdf
Carella, A., & D’Orazio, A. (2021). The heat pumps for better urban air quality. Sustainable Cities and Society, 75, Article 103314. Link to source: https://doi.org/10.1016/j.scs.2021.103314
City of Vancouver. (n.d.). Climate change adaptation strategy [Report]. Retrieved September 2, 2025, from Link to source: https://vancouver.ca/files/cov/vancouver-climate-change-adaptation-strategy-2024-25.pdf
Congedo, P. M., Baglivo, C., D’Agostino, D., & Mazzeo, D. (2023). The impact of climate change on air source heat pumps. Energy Conversion and Management, 276, Article 116554. Link to source: https://doi.org/10.1016/j.enconman.2022.116554
Cooper, S. J. G., Hammond, G. P., McManus, M. C., & Pudjianto, D. (2016). Detailed simulation of electrical demands due to nationwide adoption of heat pumps, taking account of renewable generation and mitigation. IET Renewable Power Generation, 10(3), 380–387. Link to source: https://doi.org/10.1049/iet-rpg.2015.0127
Crownhart, C. (2023, February 14). Everything you need to know about the wild world of heat pumps. MIT Technology Review. Link to source: https://www.technologyreview.com/2023/02/14/1068582/everything-you-need-to-know-about-heat-pumps/
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Lead Fellow
Heather McDiarmid, Ph.D.
Contributors
Stephen Agyeman, Ph.D.
Ruthie Burrows, Ph.D.
James Gerber, Ph.D.
Sarah Gleeson, Ph.D.
Yusuf Jameel, Ph.D.
Daniel Jasper
Jason Lam
Cameron Roberts, Ph.D.
Alex Sweeney
Eric Wilczynski
Internal Reviewers
Aiyana Bodi
Hannah Henkin
Jason Lam
Zoltan Nagy, Ph.D.
Ted Otte
Amanda D. Smith, Ph.D.
Our analysis showed that each all-electric residential heat pump for space heating reduces emissions by an average of 0.95 t CO₂‑eq /heat pump system/yr (20-yr and 100-yr basis, Table 1).
Heat pumps reduce emissions by reducing the amount of fossil fuels burned for space heating or by reducing the use of less efficient electric resistance heating. Operating a heat pump generates no on-site emissions except refrigerant leaks, which are addressed by the Improve Refrigerant Management solution. Our analysis included the emissions from the electricity used to power heat pumps. Thus, the emissions reduction from heat pump adoption is expected to improve as electricity generation incorporates more renewable energy (Knobloch et al., 2020).
There are significant regional differences in heat pump effectiveness due to the electricity mix, climate, and types of heating systems used today (Knobloch et al., 2020). The global average is weighted based on regional heating requirements and existing heating technologies.
We did not quantify the reduction in pollutants such as nitrogen oxides, sulfur oxides, and particulate matter, which are released when fossil fuels are burned for space heating. We also refrained from estimating the global warming impacts of refrigerant leaks associated with the use of heat pumps, which is addressed by our Improve Refrigerant Management solution, or natural gas leaks associated with the use of fossil fuels for heating.
Table 1. Effectiveness at reducing emissions from space heating.
Unit: t CO₂‑eq/heat pump system/yr, 100-yr basis
mean | 0.95 |
A residential air-source heat pump has a mean initial installed cost of US$6,800 and an estimated US$540/yr operational cost for heating. Over a 15-year lifespan, this results in a net cost of US$990/yr. A heat pump generally replaces both a heating and cooling system with a combined mean installed cost of US$5,300. Operating a baseline heating system costs US$830/yr (operational cooling cost was not included in this analysis). Over a 15-year lifespan, the baseline case has a net cost of US$1,180/yr. This results in a net US$190 savings for households that switch to a heat pump. This translates to US$200 savings/t CO₂‑eq reduced (Table 2).
These values include the average annual cost to operate the equipment for heating and the annualized up-front cost of a heat pump relative to both a heating and cooling system that it replaces. There can be significant variability in the up-front cost of equipment based on the type of heat pump installed, the size of the building, and the climate in which it is designed to operate. We assumed the cost to operate the equipment for cooling to be the same with heat pumps and the air conditioners they replace.
There are significant regional differences in the operational cost of heating systems due to climate, utility rates, and the heating systems in use today. The global average outcomes described here are weighted averages from Europe, Canada, the United States, China, and Japan based on regional heating requirements and existing heating technologies.
Utility cost estimates are from June 2023 (Global Petrol Prices, 2024) and may vary substantially over time due to factors such as volatile fossil fuel prices, changing carbon prices, and heat pump incentives. Additional installation costs, such as upgrades to electrical systems, ductwork, or radiators, are not included.
Table 2. Cost per unit climate impact. Negative values reflect cost savings.
Unit: 2023 US$/t CO₂‑eq , 100-yr basis
mean | –200 |
Insufficient data exist to quantify the learning curve for heat pumps.
The cost of installing a heat pump includes both equipment costs and the labor cost of installation. According to the U.S. Energy Information Administration ([U.S. EIA] 2023), retail equipment costs are 60–80% of the total installed cost of residential air-source heat pumps (central and ductless).
Equipment costs can decrease with economies of scale and as local markets mature, but may be confounded by technological advances as well as equipment and/or refrigerant regulations that can also increase costs (IEA, 2022). European estimated learning rates for heat pump equipment costs range from 3.3% for ground-source heat pumps (Renaldi et al., 2021) to 18% for air-source heat pumps (Jakob et al., 2020). Ease and cost of installation is a research and development goal for manufacturers (IEA, 2022).
The installed cost is also affected by rising labor costs and projected labor shortages (IEA, 2022). Renaldi et al. (2021) showed negative learning rates for the total installed costs in the United Kingdom due to increasing installation costs: –2.3% and –0.8% for air-source and ground-source heat pumps, respectively.
Heat pump manufacturer efforts to improve the performance of the technology may impact learning curves as well. In North America, the Residential Heat Pump Technology Challenge has supported the development of heat pumps with improved cold-climate performance (U.S. DOE, 2022).
Speed of action refers to how quickly a climate solution physically affects the atmosphere after it is deployed. This is different from speed of deployment, which is the pace at which solutions are adopted.
At Project Drawdown, we define the speed of action for each climate solution as emergency brake, gradual, or delayed.
Use Heat Pumps is a GRADUAL climate solution. It has a steady, linear impact on the atmosphere. The cumulative effect over time builds as a straight line.
Heat pumps can increase demand for electricity and can therefore increase demand for fossil fuel-based power generation. In areas where power generation relies heavily on fossil fuels, heat pumps may generate more emissions than gas heating systems. As the electricity sector adopts more renewables and phases out fossil fuel-based generation, the emissions impact of heat pumps will decrease. Once a building has been designed or retrofitted to accommodate a heat pump it is likely that new heat pumps will be installed at the end of equipment life, perpetuating the benefit.
Efforts are underway to retrofit buildings by improving insulation, air-sealing, and upgrading windows. When done alongside heat pump adoption, retrofits can reduce the size of heat pump needed and increase total energy, emissions, and cost savings.
As heat pump adoption grows, so too will the manufacture of refrigerants, some of which have high global warming potentials when they escape to the atmosphere. See Deploy Alternative Refrigerants and Improve Refrigerant Management solutions for more on accelerating change in this sector.
Our analysis suggests that 130 million heat pumps for heating are currently in operation primarily based on data in Europe, Canada, the United States, China, and Japan (Table 3). These include both all-electric heat pumps and hybrid heat pumps. The IEA (2023a) estimated that 12% of global space heating demand was met by heat pumps in 2022.
This value is based on market reports and national data sources plus IEA (2022) estimates of total GW of installed capacity. To convert installed capacity to the number of heat pumps, we used the median from the range of suggested average capacities (7.5 kW for Europe and North America, 4 kW in Japan and China, 5 kW global average). In Japan, where heat pump units typically heat only one room, we assumed 2.4 units per heat pump (International Renewable Energy Agency [IRENA], 2022).
Table 3. Current heat pump adoption level (2020–2022).
Unit: Heat pump systems in operation
mean | 130,000,000 |
Our estimates put the median adoption trend at 17 million new all-electric and hybrid heat pumps in operation per year (Table 4). This analysis is based on product shipment data (used as a proxy for installed heat pumps), market reports, national statistics, and IEA data for growth in installed capacity. For the IEA data (2010–2023), we assumed a global average of 5 kW of heat capacity per heat pump unit (IEA, 2024).
Shipment and market analysis reports consistently show growing markets for heat pumps in much of the world (Asahi, 2023; European Heat Pump Association, 2024; IEA, 2024). In the United States, shipments of heat pumps have outnumbered gas furnaces since at least 2022 (Air-Conditioning, Heating, and Refrigeration Institute, 2025).
Table 4. Heat pump adoption trend (2010–2023).
Unit: Heat pump systems in operation/yr
25th percentile | 12,000,000 |
mean | 15,000,000 |
median (50th percentile) | 17,000,000 |
75th percentile | 18,000,000 |
Our adoption ceiling is set at 1.200 billion heat pumps for space heating by 2050 (Table 5), most of which are expected to be in residential buildings. This is based on the IEA’s Net Zero Roadmap projection that heat pumps will represent 6,500 GW of heating capacity globally by 2050, covering 55% of space heating demand (IEA, 2023a). Our adoption ceiling assumes all-electric heat pumps cover all space heating demand.
We assumed that average heat pump sizes (capacities) will increase over time as heat pumps cover a greater portion of a building’s heating load and as more commercial buildings with larger heating loads install heat pumps. Using a global average of 10 kW per heat pump, the IEA projections imply 650 million heat pumps will be in operation by 2050 with the technical adoption ceiling for 1,200 million heat pumps if all heating demand were met by heat pumps.
Table 5. Heat pump adoption ceiling: upper limit for adoption level.
Unit: Heat pump systems in operation by 2050
mean | 1,200,000,000 |
We estimate the achievable range for heat pump adoption to be 600–960 million heat pumps in operation by 2050 (Table 6).
Most existing space heating systems will be replaced at least once between now and 2050 because this equipment typically has lifetimes of 15–30 years (U.S. EIA, 2023). Policies that encourage high efficiency heat pumps alongside insulation upgrades have the potential to provide lifetime savings, greater comfort, and energy efficiency benefits (Wilson et al., 2024). Given the available timelines and potential benefits, near full adoption is technically feasible.
We have set the Achievable – High heat pump adoption at 80% of the adoption ceiling to account for systems that are difficult to electrify due to very cold climates, policy, economic barriers, and grid constraints. This high achievable value assumes that some systems may be replaced before their end of life to meet climate and/or financial goals.
We have set the Achievable – Low heat pump adoption at 50% of the adoption ceiling. This is roughly consistent with the current adoption trend continuing out to 2050.
Our heat pump units adopted include both all-electric and hybrid heat pumps. This analysis assumes that hybrid heat pumps will become less common as fuels are phased out and that all-electric heat pumps will dominate by 2050.
Table 6. Range of achievable adoption levels.
Unit: Heat pump systems installed
Current Adoption | 130,000,000 |
Achievable – Low | 600,000,000 |
Achievable – High | 960,000,000 |
Adoption Ceiling | 1,200,000,000 |
Our estimates show the global impact of existing heat pumps for space heating to be a reduction of 0.12 Gt CO₂‑eq/yr (100- and 20-yr basis) based on current adoption and today’s electricity grid emissions (Table 7). Because electricity grid emissions are decreasing for each kWh of electricity generated (IEA, 2025), the actual impact will be greater than our estimates when future electricity generation emissions are lower.
For the adoption ceiling, assuming heat pumps supply all of the IEA’s projected global heating demand in 2050 (IEA, 2023a), 1.1 Gt CO₂‑eq/yr (100- and 20-yr basis) could be avoided per year with today’s electricity grid emissions.
A high-end achievable target is 80% of the adoption ceiling, accounting for systems that might continue to use fossil fuels for heating due to factors such as cold climates, economic barriers, and grid constraints. This would result in avoiding 0.91 Gt CO₂‑eq/yr (100- and 20-yr basis) with today’s electricity grid emissions.
A low-end achievable target is 50% of the adoption ceiling, roughly equivalent to heat pump adoption continuing at today’s rate. This would result in avoiding 0.57 Gt CO₂‑eq/yr (100- and 20-yr basis) with today’s electricity grid emissions.
Table 7. Climate impact at different levels of heat pump systems adoption.
Unit: Gt CO₂‑eq/yr, 100-yr basis
Current Adoption | 0.12 |
Achievable – Low | 0.57 |
Achievable – High | 0.91 |
Adoption Ceiling | 1.1 |
Heat Stress
Heat waves and extreme heat are becoming increasingly significant factors of morbidity and mortality worldwide (Romanello et al., 2024). Some buildings that replace heating systems with heat pumps will gain access to cooling (Congedo et al., 2023; Wilson et al., 2024; Zhang et al., 2017). This can provide protection from heat stress in regions experiencing increasingly hotter summers (where air conditioning was not previously necessary) and for populations that are vulnerable to heat stress, such as the elderly (Malmquist et al., 2022). Some jurisdictions incentivize heat pumps for this reason. For example, the United Kingdom plans to install 600,000 heat pumps by 2028 (Zahiri & Gupta, 2023), and local climate adaptation plans in Canada recommend the installation of heat pumps to provide space cooling that can reduce morbidity and mortality during heat waves (Canadian Climate Institute, 2023; City of Vancouver, n.d.). Because exposure to extreme heat is disproportionately higher for minority communities – particularly in urban environments – access to cooling has important implications for environmental justice (Benz & Burney, 2021).
Income and Work
Installing heat pumps can lead to greater household savings on electricity. Research has shown that across the United States, heat pumps can reduce electricity bills for 49 million homes with an average savings of US$350–600 per year, depending on the efficiency of the heat pump (Wilson et al., 2024). Wilson et al. (2024) found that higher efficiency heat pumps could be cost-effective for about 65 million households in the United States. Heat pumps also create jobs (Sovacool et al., 2023). In its post-COVID-19 recovery plan, the IEA (2020) estimated that every US$1 million investment in heat pumps could generate 9.1 new jobs and reduce 0.8 jobs in the fossil fuel industry. About half of the new jobs will be in manufacturing, with the remaining distributed between installation and maintenance.
Health
Burning fossil fuels for heating directly emits health-harming particulates and can generate carbon monoxide. Replacing fossil gas heating with heat pumps can reduce air pollution (Carella & D’Orazio, 2021) and contribute to improving health outcomes (Zhou et al., 2022). A study in China showed that as the power grid moves to incorporate renewable energy, the air quality and health benefits of heat pumps will increasingly outweigh the benefits of gas heaters (Zhou et al., 2022). The risk of carbon monoxide poisoning also decreases in buildings that switch from fuel-burning space heating to heat pumps. In buildings that burn fuels for applications such as space heating, carbon monoxide can pose serious health risks, including poisoning and death (Mattiuzzi & Lippi, 2020).
Heat pumps contain refrigerants that often have high global warming potentials. Refrigerant leaks can occur during installation, operation, and end of life (McDiarmid & Parker, 2024). As more heat pumps are adopted, there is a risk of increased emissions from refrigerant leaks during operation as well as refrigerant release at the end of equipment life. Alternate refrigerants with lower global warming potentials are being phased in due to an international agreement to reduce hydrofluorocarbons, including many refrigerants (Kigali Amendment).
Higher rates of heat pump installation will require upscaling heat pump manufacturing and training, plus certification of skilled labor to install them. Skilled labor shortages are already creating bottlenecks for heat pump adoption in some countries, some of which can be met by reskilling other heating technicians (IEA, 2022).
Reinforcing
Advancements in heat pump technology will support the development and adoption of heat pump technology for industrial applications.
Increased adoption of heat pumps will increase the market for alternative refrigerants and refrigerant management.
Competing
Alternative refrigerants require design changes (Kim et al., 2020) that could increase the up-front cost of heat pumps.
Heat pumps could compete with alternatives such as fossil fuel-based district heating and cooling systems that lack heat pumps as well as low-carbon biofuels.
Adoption of heat pumps for space heating is likely to generate seasonal peaks in power demand during cold days that may require building out extra generating capacity that decreases grid efficiency (Bloess et al., 2018). Heat pumps can compete with electric cars for power during peak times (Van Someren et al., 2021).
Solution Basics
heat pump systems
Climate Impact
CO₂ , CH₄, N₂O, BC
Enhanced grid infrastructure will be required to support widespread building electrification and the greater demand for electricity, especially on cold days when heat pumps are less efficient at moving heat (Cooper et al., 2016). Demand-side management, thermal storage, home batteries, bidirectional chargers, and greater adoption of ground-source heat pumps can all help to reduce this increased demand (Cooper et al., 2016; McDiarmid, 2023).
In general, heat pumps have higher up-front costs than do fueled alternatives but will save a building owner money over the lifetime of the system. This can create economic barriers to accessing the benefits of heat pumps, with low-income homeowners and renters who pay for their utilities being particularly vulnerable to being left behind in the transition (Sandoval et al., 2024). Equity advocates are also concerned that the cost of maintaining gas and other fossil fuel infrastructure may increasingly fall on lower-income building owners who struggle to afford the upfront cost of electrifying with heat pumps (Davis & Hausman, 2022).
Space heating demand
Heating degree days are a measure of total space heating demand to maintain an indoor temperature above 18°C.
Fick, S.E. & Hijmans, R.J. (2017). WorldClim 2: new 1km spatial resolution climate surfaces for global land areas (Version 2.1) [Data set]. International Journal of Climatology 37 (12): 4302-4315. Link to source: https://doi.org/10.1002/joc.5086
Space heating demand
Heating degree days are a measure of total space heating demand to maintain an indoor temperature above 18°C.
Fick, S.E. & Hijmans, R.J. (2017). WorldClim 2: new 1km spatial resolution climate surfaces for global land areas (Version 2.1) [Data set]. International Journal of Climatology 37 (12): 4302-4315. Link to source: https://doi.org/10.1002/joc.5086
In this solution, heat pumps replace space-heating options that rely on fossil fuels. This primarily applies to North America, Asia, and Europe. Limited data are available for some regions, so this analysis focuses on European countries, Canada, the United States, Japan and China.
The effectiveness of heat pumps at reducing GHG emissions is influenced by the heating needs of the region and the generation mix of the electricity grid. Areas with higher heating needs will generally show greater emissions reduction because more energy is needed to keep buildings warm. However, this is partially offset because heat pumps are less energy efficient on colder days. The local electricity grid mix matters because heat pumps are powered by electricity. Given the same outside temperature, regions with a largely emissions-free grid (e.g., France or Canada) will have higher emissions impacts from heat pump adoption than areas where electricity is largely generated from fossil fuels (e.g., China). The type of heat pumps (all-electric vs. hybrid) best suited to each region depends on technological and economic factors.
- Introduce zero-carbon ready building codes, clearly designating heat pumps as the default for all new buildings.
- Incentivize purchases with grants, loans, or tax rebates.
- Increasing training and support for heat pump installers.
- Expand the electrical grid and increase renewable energy generation.
- Streamline permitting processes.
- Incentivize complementary solutions such as better insulation, thermal storage, and air sealing.
- Institute a clean heat standard (similar to a renewable energy standard) with a well-defined implementation timeline.
- Launch performance labels for heating technology.
- Roll out new energy efficiency programs.
Further information:
- Heat pump programs can’t keep leaving low-income households behind. Kresowik (2024)
- How to mandate clean heat in our buildings. Haley (2023)
- All countries targeted for zero-carbon-ready codes for new buildings by 2030. IEA (2022)
- Overview of key barriers to accelerating the deployment of heat pumps and corresponding policy solutions. IEA (2022)
- A policy toolkit for global mass heat pump deployment version 2.0. Lowes et al. (2024)
- Poor-quality HVAC installs are costing us. A solution is within reach. Velez et al. (2023)
- Legal job function action guide. Project Drawdown (2022)
- Government relations and public policy job function action guide. Project Drawdown (2022)
- Clean heat standards handbook. Santini et al. (2024)
- Commit to zero-carbon construction, clearly designating heat pumps as the default for all new buildings.
- Increase the available workforce by encouraging trade organizations to promote career and workforce development programs.
- Design heat pumps that are simpler, faster, and cheaper to install.
- Educate customers on the benefits and train them on usage.
- Connect with users and early adopters to understand and adapt to consumer sentiment.
- Create appealing incentives and financing programs.
- Partner with builders and developers to improve product adoption and increase market demand for heat pumps.
Further information:
- All countries targeted for zero-carbon-ready codes for new buildings by 2030. IEA (2022)
- A policy toolkit for global mass heat pump deployment version 2.0. Lowes et al. (2024)
- Upgrade your heating and cooling with a heat pump. Rewiring America (n.d.)
- Why electrify. Rewiring America (n.d.)
- How to get contractors on board with heat pumps and electrification. St. John (2023)
- Clean heat standards handbook. Santini et al. (2024)
- Heat pump replacement. U.S. DOE (n.d.)
- Commit to zero-carbon construction, clearly designating heat pumps as the default for all new buildings.
- Deploy heat pumps in all owned and operated facilities.
- Encourage building owners and managers to switch to heat pumps in leased facilities.
- Promote the benefits of heat pumps and share government incentives with leased facilities and networks.
- Encourage employees to reduce emissions at home by providing educational resources on the benefits of domestic heat pumps.
Further information:
- Climate solutions at work. Project Drawdown (2021)
- Drawdown-aligned business framework. Project Drawdown (2021)
- Upgrade your heating and cooling with a heat pump. Rewiring America (n.d.)
- Why electrify. Rewiring America (n.d.)
- Heat pump replacement. U.S. DOE (n.d.)
- Advocate for zero-carbon construction and building codes that clearly designate heat pumps as the default for all new buildings.
- Deploy heat pumps in owned and operated facilities.
- Encourage building owners and managers to switch to heat pumps in leased facilities.
- Educate businesses and communities on the benefits of installing heat pumps and any tax incentives in their region.
- Advocate to policymakers for improved policies and incentives.
- Educate community leaders on the need for adoption.
Further information:
- Heat pump programs can’t keep leaving low-income households behind. Kresowik (2024)
- How to mandate clean heat in our buildings. Haley (2023)
- Overview of key barriers to accelerating the deployment of heat pumps and corresponding policy solutions. IEA (2022)
- A policy toolkit for global mass heat pump deployment version 2.0. Lowes et al. (2024)
- Poor-quality HVAC installs are costing us. A solution is within reach. Velez et al. (2023)
- Climate solutions at work. Project Drawdown (2021)
- Drawdown-aligned business framework. Project Drawdown (2021)
- Why electrify. Rewiring America (n.d.)
- Clean heat standards handbook. Santini et al. (2024)
- Heat pump replacement. U.S. DOE (n.d.)
- Commit to only finance zero-carbon construction with clear requirements for heat pumps as the default for all new development investments.
- Deploy capital to efforts that improve heat pump performance and reduce material, installation, and maintenance costs.
- Explore investment opportunities that address supply chain concerns.
- Consider investments that mitigate non-manufacturing barriers to scaling.
- Finance heat pump installations via low-interest loans.
Further information:
- Cooling down the U.S. with maximum heat pump adoption. Energy Solutions et al. (2022)
- The future of heat pumps. IEA (2022)
- Upgrade your heating and cooling with a heat pump. Rewiring America (n.d.)
- Why electrify. Rewiring America (n.d.)
- How to get contractors on board with heat pumps and electrification. St. John (2023)
- Heat pump replacement. U.S. DOE (n.d.)
- Directly distribute heat pumps, prioritizing locations where heat pumps maximize emissions reductions, and improve housing affordability.
- Advocate for zero-carbon construction and building codes that clearly designate heat pumps as the default for all new buildings.
- Fund R&D efforts and competitions to improve technology, reduce costs, and address supply chain concerns.
- Support consumer advocacy and education campaigns on heat pumps and how to maximize regulatory incentives.
- Support training or incentive programs for distributors and installers.
Further information:
- Cooling down the U.S. with maximum heat pump adoption. Energy Solutions et al. (2022)
- The future of heat pumps. IEA (2022)
- A policy toolkit for global mass heat pump deployment. Lowes et al (2022)
- A policy toolkit for global mass heat pump deployment version 2.0. Lowes et al. (2024)
- Upgrade your heating and cooling with a heat pump. Rewiring America (n.d.)
- Why electrify. Rewiring America (n.d..
- How to get contractors on board with heat pumps and electrification. St. John (2023)
- Clean heat standards handbook. Santini et al. (2024)
- Heat pump replacement. U.S. DOE (n.d.)
- Advocate for zero-carbon construction and building codes that clearly designate heat pumps as the default for all new buildings.
- Highlight the need to transition away from fossil-fuel-fired heating.
- Educate the public on the benefits of heat pumps and how they work.
- Provide case studies that present successes and lessons learned.
- Increase consumer comfort by including heat pumps in communication content on topics such as home remodeling and construction, technology, health, self-sufficiency, and personal finance.
- Provide up-to-date user information on available models.
Further information:
- A policy toolkit for global mass heat pump deployment version 2.0. Lowes et al. (2024)
- Nate the house whisperer. Nate Adams (n.d.)
- A policy toolkit for global mass heat pump deployment. Lowes et al (2022)
- Upgrade your heating and cooling with a heat pump. Rewiring America (n.d.)
- Why electrify. Rewiring America (n.d.)
- How to get contractors on board with heat pumps and electrification. St. John (2023)
- Clean heat standards handbook. Santini et al. (2024)
- Heat pump replacement. U.S. DOE (n.d.)
- Identify safe, cost-effective, and suitable alternative refrigerants.
- Design systems that require less refrigerant.
- Work to increase the longevity of heat pumps.
- Improve heat pumps’ efficiency and capacity at low temperatures as well as their ability to deliver higher temperature heat.
- Research external social factors critical to adoption.
- Identify appropriate methods for recycling and disposing of heat pumps and responsibly recovering their refrigerant chemicals at the end of the product life cycle.
Further information:
- The future of heat pumps. IEA (2022)
- Upgrade your heating and cooling with a heat pump. Rewiring America (n.d.)
- Why electrify. Rewiring America (n.d.)
- How to get contractors on board with heat pumps and electrification. St. John (2023)
- Heat pump replacement. U.S. DOE (n.d.)
- Install heat pumps when possible and encourage local heating, ventilation, and air conditioning (HVAC) retailers and installers to sell services and equipment.
- Increase consumer comfort by sharing your experience and tips for troubleshooting technologies.
- Advocate for zero-carbon construction and building codes that clearly designate heat pumps as the default for all new buildings.
- Build support networks for new users and connect to explore innovations.
- Encourage your property management company, employers, and government officials to accelerate adoption.
Further information:
- Upgrade your heating and cooling with a heat pump. Rewiring America (n.d.)
- Why electrify. Rewiring America (n.d.)
- How to get contractors on board with heat pumps and electrification. St. John (2023)
- Heat pump replacement. U.S. DOE (n.d.)
- Cooling down the U.S. with maximum heat pump adoption. Energy Solutions et al. (2022)
- How to mandate clean heat in our buildings. Haley (2023)
- The future of heat pumps. IEA (2022)
- Heat pump programs can’t keep leaving low-income households behind. Kresowik (2024)
- User innovation, niche construction and regime destabilization in heat pump transitions. Martiskainen et al. (2021)
- Accelerating heat pump adoption through the Inflation Reduction Act (IRA) and complementary policies. Malinowski et al. (2023)
- Poor-quality HVAC installs are costing us. A solution is within reach. Velez et al. (2023)
Consensus of effectiveness in reducing GHG emissions: High
Electric heat pumps are generally viewed as the primary strategy for reducing GHG emissions from buildings. The Intergovernmental Panel on Climate Change ([IPCC] 2023) noted that heat pumps drive electrification in buildings and help decrease emissions. The European Commission (2022) claimed that heat pumps are an essential way of decreasing reliance on gas in heating while increasing the use of renewable energy in the heating sector. The IEA (2022) reported that heat pumps powered by electricity generated with renewable energy “are the central technology in the global transition to secure and sustainable heating.” IRENA (2024) claimed heat pumps in buildings “will play a crucial role in reducing reliance on fossil fuels.”
In one of the largest scientific reviews on the topic, Gaur et al. (2021) concluded that heat pumps “have the potential to play a substantial role in the transition to low carbon heating,” and noted that emissions impacts of heat pumps are dependent on the type of heat pump technology, their location, and the electricity grid mix. Knobloch et al. (2020) studied 59 world regions and found that electrification of the heating sector via heat pumps will reduce emissions in most world regions where they are adopted.
The results presented in this document summarize findings from 46 reports, reviews and meta-analyses and 13 original studies reflecting current evidence from 30 countries, primarily European countries, Canada, the United States, Japan, and China. We recognize this limited geographic and technology scope creates bias, and hope this work inspires research and data sharing on this topic in underrepresented regions and in the commercial sector.
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