Search Climate Insights Directory
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Five policies to lower heating bills and accelerate heat pump adoption in Illinois
RMI proposes five policies to accelerate heat pump adoption in Illinois: increasing incentives for heat pumps and weatherization while phasing out gas equipment subsidies, providing 0% financing, reforming electric and gas rate designs, implementing an AC-to-heat pump replacement policy, and adopting electric-friendly standards for new construction. The brief notes that while heat pumps can reduce energy bills for most Illinois households—particularly those using propane or electric resistance heat—high up-front costs remain a primary barrier.
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Document type: Policy brief
It’s Time to Rethink Utilities’ Energy Efficiency Programs
The policy brief examines the misalignment between legacy gas utility energy efficiency programs and current state climate goals in the United States. It highlights how traditional cost-effectiveness tests often prioritize short-term gas appliance rebates over high-impact weatherization and electrification. Using examples from states like New York and Massachusetts, the document proposes six strategic reforms to redirect ratepayer funding toward long-term decarbonization and building efficiency.
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Document type: Policy brief
Australia’s 2035 National Climate Plan: A Robust Climate Target for Economic Certainty and Global Credibility
The report advocates for Australia to set a 2035 emissions reduction target of at least 75% below 2005 levels, aligning with a 1.5°C pathway. It argues that such a target provides the predictability businesses need for capital allocation and infrastructure investment, while mitigating risks associated with fossil fuel dependence. The authors propose a comprehensive implementation framework including sectoral pathways, a National Climate Investment and Accountability Council, and blended finance platforms to drive the transition.
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Document type: Report
Submission to the CleanBC Independent Review Panel
The Canadian Association of Physicians for the Environment (CAPE) argues that British Columbia's current climate strategy is insufficient to meet its 2025 and 2030 targets, primarily due to continued support for fracked gas and liquefied natural gas (LNG) expansion. CAPE highlights significant health risks associated with fracking, including respiratory disease and cancer, noting a critical loss of physicians in northeastern B.C. The submission calls for a moratorium on new fracking and LNG development, a ban on gas connections in new buildings by 2025, and increased investment in active transportation and public transit to address the province's largest emissions source. CAPE also emphasizes the need for equitable electrification and a just transition for fossil fuel workers.
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Document type: Statement
EV Loads Are Coming — Here’s How They’ll Affect the Grid
RMI's GridUp tool analyzes EV load growth in New York State, specifically within the service territories of Consolidated Edison and National Grid. The analysis indicates that unmanaged EV charging could overload several substation banks by 2035, but managed charging could reduce the EV contribution to system peak load by approximately 33 percent, potentially deferring costly infrastructure investments.
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Document type: Report
Reforming Energy Efficiency Programs to Increase Heat Pump Adoption
The report argues that current US energy efficiency programs are overly complex, resulting in low participation rates (0.5% to 3% of households) and significant barriers for low-to-moderate income (LMI) families. To drive heat pump adoption and meet climate targets, the document recommends simplifying incentive structures (e.g., using $/unit instead of $/BTUh), aligning equipment specifications with federal standards like ENERGY STAR, and providing up-front discounts with prompt contractor reimbursement. It emphasizes the need for long-term funding (3-5 years), market development through workforce training, and a 'climate-forward' framework that prioritizes greenhouse gas reductions over simple energy savings. For equity, it suggests partnering with community-based organizations, setting LMI-specific budget targets, and funding pre-electrification measures like electrical panel upgrades.
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Document type: Report
Electric Rates Can Help or Hinder Heat Pump Progress
The document examines how current electricity rate designs in the U.S. often overcharge heat pump users because their peak demand occurs in winter, while grid peaks typically occur in summer. Using data from NIPSCO in Northern Indiana, the brief demonstrates that aligning rates with the actual cost of service could save electrified customers hundreds of dollars annually. It proposes several rate reform options—including seasonal heating rates, time-varying rates, and separate customer classes—while emphasizing the need for affordability measures for low-income households and the long-term evolution of rates as the grid transitions to clean energy.
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Document type: Policy brief
How “Digital Twins” Are Enabling City-Wide Electrification
The City of Ithaca collaborated with Cornell University and RMI to model 5,468 buildings using a combination of the Urban Building Energy Model (UBEM) and the Green Upgrade Calculator (GUC). The analysis found that combining air-source heat pumps with envelope improvements and rooftop solar significantly reduces operating costs and electricity demand. The study identifies residential homes in low-income communities and certain downtown commercial buildings as high-priority targets for cost-effective decarbonization.
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Document type: Case study
How Regulators Can Direct Utilities to Leverage IRA Savings
The document outlines strategies for regulators to direct utilities to incorporate Inflation Reduction Act (IRA) tax credits, rebates, and grants into their planning and procurement processes. It highlights specific actions taken by PUCs in Washington, Georgia, Oregon, and New Jersey to improve grid affordability and reliability by mandating the investigation of federal funding, creating financial incentives for matching requirements, and integrating federal rebates into state energy efficiency programs.
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Document type: Guide
Comment la politique peut-elle garantir un chauffage abordable et fiable des bâtiments dans le cadre de la transition vers la carboneutralité au Canada?
The document argues that achieving cost-effective net-zero emissions in Canada's building sector requires a significant shift toward electrification and a cessation of gas network expansion. It highlights a misalignment between current utility regulations—which continue to incentivize gas infrastructure growth—and the necessary transition to clean energy. The briefing recommends that provincial governments legally mandate net-zero targets for regulators, prioritize electrification over gas for new developments, and develop managed contraction plans for existing gas networks to avoid stranded assets and protect taxpayers.
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Document type: Briefing
Comment les politiques d’aujourd’hui stimuleront ou retarderont la transition des bâtiments vers un chauffage propre et fiable
The report argues that achieving cost-optimal carbon neutrality in Canada's building sector requires a massive shift toward electrification, primarily through heat pumps, and a significant reduction in gas network reliance. It warns that current regulatory inertia and the continued expansion of gas infrastructure create risks of 'stranded assets' and higher costs for taxpayers. The authors recommend that provincial governments provide clear long-term strategic guidance, mandate net-zero targets, and empower regulators to prioritize electrification over gas expansion to protect long-term affordability and reliability.
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Document type: Report
HEAT EXCHANGE
The report finds that a cost-optimal path to net zero in Canada requires a massive shift toward electrification of building heat, with electricity powering 78% to 91% of annual space heating demand by 2050. It argues that continued expansion of gas networks is inconsistent with these goals and risks creating stranded assets. The analysis highlights a critical gap in provincial policy leadership, noting that current utility regulation—which incentivizes infrastructure growth—is ill-suited for the energy transition. To mitigate risks, the report recommends that provincial governments legislate net zero targets, mandate electrification for new buildings, and equip regulators to manage the gradual contraction of gas networks while investing in electricity capacity and peak demand management.
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Document type: Report
TESTIMONY OF EARTHJUSTICE BEFORE THE JOINT HEARING OF THE SENATE FINANCE AND ASSEMBLY WAYS AND MEANS COMMITTEES REGARDING THE FISCAL YEAR 2024-25 ENVIRONMENTAL AND ENERGY BUDGET PROPOSALS
Earthjustice urges New York State to increase funding for water infrastructure and environmental protection while accelerating the transition from fossil fuels to electricity. The testimony specifically advocates for the NY HEAT Act to downsize the gas system, the RAPID Act to speed up electric transmission, and the Green Transit, Green Jobs bill to electrify bus fleets. It also calls for urgent action on childhood lead poisoning and the reduction of agricultural greenhouse gas emissions, while opposing 'false solutions' like hydrogen and renewable natural gas.
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Document type: Briefing
Harnessing the Transformative Potential of the Greenhouse Gas Reduction Fund
The Greenhouse Gas Reduction Fund (GGRF), established by the U.S. Inflation Reduction Act 2022, provides USD 27 billion in grants to reduce GHG emissions, specifically targeting low-income and disadvantaged communities (LIDACs). While the fund can catalyze wealth and resilience through clean energy and transport, it faces hurdles including short disbursement timeframes, varying operational capacities of community development financial institutions (CDFIs) and green banks, and limited workforce capacity. To address these, the Climate Policy Initiative (CPI) recommends catalyzing private capital, standardizing underwriting, coordinating technical assistance, aligning government efforts, and fostering a collaborative learning culture. CPI estimates that achieving net-zero GHG emissions by 2050 requires USD 9.1 trillion in priority project categories through 2035, with USD 2.8 trillion specifically needed in LIDACs.
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Document type: Briefing
CITIES FOR A FOSSIL FREE FUTURE POLICY BRIEF
The document positions cities as central actors in the global movement to end fossil fuel dependence, noting that while they are major emitters, they can lead through 'city diplomacy' and local policy. It outlines 21 key recommendations divided into two main categories: enhancing city diplomacy and removing the 'social licence' of the fossil fuel industry, and implementing sectoral decarbonisation in transportation, energy, the built environment, and waste management. The brief emphasizes that urban action must be coupled with national-level pressure to ensure a just transition for workers and marginalized communities.
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Document type: Policy brief
Gaps and Barriers to Stacking Federal, State, and Local Incentives
The report identifies significant barriers to 'stacking' (combining) multiple financial incentives for US residential energy retrofits, including complex application processes, inconsistent performance standards, and funding gaps for health and safety repairs. It analyzes the interaction between Inflation Reduction Act (IRA) tax credits and rebates, noting that while clean energy retrofits can be more affordable than fossil fuel alternatives after incentives, low-income households often lack the 'tax appetite' to benefit from tax credits. RMI recommends that state program administrators prioritize funding for pre-electrification upgrades, consolidate application processes, and increase allocations for underserved communities and multi-family housing.
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Document type: Report
Developing an Impactful Solar for All Proposal
The document outlines how to develop a competitive proposal for the EPA's Solar for All program, part of the $27 billion Greenhouse Gas Reduction Fund. It provides detailed guidance on five key evaluation criteria: impact assessment, meaningful benefits, market strategy, financial assistance, and equitable access. The guide emphasizes reducing upfront costs, leveraging federal tax credits via third-party ownership, and integrating energy efficiency to maximize benefits for disadvantaged communities.
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Document type: Guide
How Real Estate Investment Trusts (REITs) Can Drive Solar Development
REITs in the US control approximately 38.5 billion sq. ft. of solar-appropriate surface area, capable of generating over 25 percent of electricity used in US commercial buildings. While on-site solar is economically viable for 90 percent of the top 50 REITs by 2025, adoption is hindered by tax credit complexities, IRS recapture rules, and risks associated with tenant turnover and low energy intensity in industrial warehouses. Community solar is proposed as a solution to these barriers, offering additional tax credit bonuses of 10–20 percent when serving low- and moderate-income residents. Currently, only nine US states support rooftop community solar, though some leading REITs like Prologis, Lineage Logistics, Blackstone, Brookfield, and Hartz Mountain have already installed significant capacity.
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Document type: Guide
Clean Energy 101: Geothermal Heat Pumps
Geothermal heat pumps (GHPs) use the constant temperature of the earth to provide efficient heating and cooling with zero direct emissions. While installation costs are higher than fossil fuel alternatives, the Inflation Reduction Act provides tax credits and rebates that can reduce these costs by up to 50%. In the U.S. Midwest, GHPs can reduce emissions by 85-90% compared to gas or propane furnaces and use approximately 80% less energy annually. The document highlights 'networked geothermal' systems for campuses and neighborhoods as a way to achieve over 500% efficiency and lower individual costs through economies of scale.
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Document type: Fact sheet
How to Get Your Local Government to 100 Percent Clean Electricity
RMI developed the Local Energy Action Framework (LEAF) to help US local governments move from setting carbon-neutrality goals to implementing efficient energy projects. By analyzing six US cities and counties, the framework emphasizes a holistic approach that considers the interaction between energy efficiency, electrification, and renewable procurement. Key findings suggest that prioritizing high-demand facilities like water treatment plants for efficiency and using flexible loads or batteries to manage peak demand are critical for achieving 24/7 clean electricity. The guide also highlights that while electrification significantly reduces emissions, it increases building loads, necessitating the use of efficient technologies like heat pumps and the procurement of off-site non-solar renewable energy to fill remaining gaps.
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Document type: Guide