Heating and cooling (H&C) is the largest source of energy end use (49 percent), ahead of electricity (20 percent) and transport (30 percent), according to the International Renewable Energy Agency (IRENA). The vast majority of energy demand in H&C is driven by heating purposes across two key sectors: industry and buildings. Not surprisingly, the H&C sector is responsible for approximately 40 percent of global energy-related carbon dioxide emissions, according to IRENA.

Most heating is still powered by fossil fuels — mainly gas, but also coal and oil. Both the United States and Europe are actively working on regulatory support for decarbonizing the H&C sector. This involves transitioning away from fossil fuels toward renewable-energy sources and improving energy efficiency across both buildings and industry. In 2023, renewables accounted for approximately 10 percent of global heat demand. However, we anticipate renewables to account for approximately 30 perce