Building Decarbonization Coalition - Experts & Thought Leaders

Supporting LG Electronics’ global business-to-business (B2B) expansion, the company aims to double its U.S. HVAC product sales by 2030, executives announced at LG Air Conditioning Technologies USA’s 2024 Dual Channel Leadership Summit. The two-day summit, which brought together pioneers from LG’s distribution customers and applied representatives, cultivated a collaborative environment supporting LG’s substantial B2B growth strategies. LG executives and gain insights Attendees had the opportunity to connect with LG executives and gain insights into products Attendees had the opportunity to connect with LG executives and gain insights into products, processes, the upcoming refrigerant transition, marketing initiatives, and more. "As we actively expand our B2B business in the United States, we intend to more than double our HVAC product sales by 2030," said Chris Jung, President and CEO of LG Electronics North America, who highlighted LG's innovations and aggressive B2B acceleration with HVAC being a primary growth driver worldwide. Smart HVAC solutions "Smart HVAC solutions are in demand due to rising commercial construction, energy-saving regulations, electrification and decarbonization, as well as Inflation Reduction Act rebates and incentives," adds Chris Jung. Thanking the applied reps and distributors for their partnership in transforming the industry, Chris Jung said, "We will never stop innovating and investing in solutions that help grow your business and will continue to build on the foundations of innovation and collaboration and collectively push the boundaries of what’s possible in the HVAC industry." New residential HVAC systems Chris Jung said LG aims to strengthen its U.S. air solutions business through strategic partnerships, fostering a deeper understanding of the importance of HVAC, especially as the electrification movement continues to expand. A significant LG focus is the company’s extensive range of HVAC solutions, particularly its hydronic and heat pump products. Heat pumps are a crucial element in the United States’ pursuit of achieving goals by 2030 Heat pumps are a crucial element in the United States’ pursuit of achieving electrification goals by 2030, with some states aiming to have 65 percent of all new residential HVAC and hot water heating systems consist of heat pumps by the end of the decade. The U.S. heat pump market, valued at $13.6 billion in 2023, is projected to grow at over 8.9 percent CAGR from 2024 to 2032. Related to building emissions Underscoring its commitment to electrification and decarbonization, LG invited Panama Bartholomy, Head of the Building Decarbonization Coalition (BDC) as the summit’s keynote speaker on 'The Path to a Decarbonized Future'. Bartholomy spoke about emerging laws and regulations related to building emissions, the trajectory for the decarbonization movement and the opportunity the changes bring for the HVAC industry.  Sustainability and climate goals Steve Scarbrough, Senior Vice President and General Manager for LG Air Conditioning Technologies USA, said, "LG is dedicated to delivering energy-efficient, environmentally-conscious solutions that contribute to sustainability and climate goals for our professionals, their customers and the U.S." Steve Scarbrough adds, "The Dual Channel Leadership Summit provides us with a platform to not only talk through our product innovations, but the many ways in which we are providing associates solutions that help them grow their businesses today and into the future." Portfolio of HVAC solutions For example, Scarbrough explained that, as a pioneering advocate of the electrification movement, LG offers a broad portfolio of HVAC solutions that enhance energy efficiency, contribute to environmental stewardship, and support the industry’s transition towards a greener future. LG Electronics’ global acceleration of B2B operations as a central component of its overall business portfolio innovation strategy. B2B capabilities By 2030, the company expects that its B2B areas will account for 45 percent of total sales versus 35 percent. Beyond air solutions, LG Electronics is rapidly strengthening its B2B capabilities across a wide range of other areas, including vehicle components, information displays, robots, EV charging systems, built-in appliances, and smart factory solutions.

The California Heat Pump Partnership (CAHPP) officially launched its first convening to bring together state agencies, manufacturers representing more than 90% of the U.S. consumer heat pump market, utilities, and other market actors to help achieve the state’s goal to install six million electric heat pumps by 2030. Launched with a shared vision to catalyze a sustainable, decarbonized future, the public-private partnership will drive forward a clean energy economy and advance California’s climate objectives by propelling widespread heat pump adoption through cross-sector collaboration and strategic partnerships. Heat pump technology “California knows how to scale clean energy. We've done this with electric vehicles, solar, wind, and battery storage and now it's time to take the benefits of heat pump technology mainstream," said California Energy Commission Chair David Hochschild. “Heat pumps provide Californians a way to both cool and heat their homes with no pollution. The California Heat Pump Partnership will help government and industry leaders do the barrier-busting necessary to ensure heat pumps are accessible to all Californians." Building Decarbonization Coalition “The Building Decarbonization Coalition is uniquely positioned to manage the partnership, and bring together state and industry leaders to rapidly grow the heat pump market in California,” said Terra Weeks, Director for the CAHPP. “Scaling this technology will usher California into a new era of clean electric heating and cooling, and propel the state toward a carbon neutral future.” Addressing technical, market, and policy barriers The partnership will also deploy a statewide consumer marketing campaign through The Switch Is On The CAHPP will develop a blueprint outlining how to address technical, market, and policy barriers to achieving the state’s heat pump targets. The partnership will also deploy a statewide consumer marketing campaign through The Switch Is On, an initiative launched by the Building Decarbonization Coalition, to educate, inspire, and make switching to electric appliances easier for communities, contractors, and all those who live and work in buildings. decarbonization goals “As California moves toward a carbon-neutral future, it's crucial to foster close coordination between state and market leaders to achieve our building decarbonization goals," said California Public Utilities Commission President Alice Reynolds. “The Heat Pump Partnership is a vital step in supporting California’s transition to clean electric heating and cooling. By aligning key stakeholders in the clean energy transition, we can minimize costs and maximize benefits for all Californians, driving us towards a more sustainable future.” climate and air quality solutions “California has advanced climate and air quality solutions through innovation and collaboration between government, communities, and industry to ensure equitable outcomes,” said California Air Resources Board Chair Liane Randolph. “The heat pump partnership is the latest example of how state agencies and other climate leaders are working together to face the growing threat of extreme heat and the need to decarbonize with action, urgency, and a commitment to addressing the needs of vulnerable Californians.” clean energy transition Scaling heat pump adoption in the world’s fifth-largest economy will also act as a global market signal California currently has about 1.5 million heat pumps deployed and is on pace to install less than 200,000 heat pumps a year. To close the gap of 4.5 million heat pumps by 2030, heat pump adoption will need to nearly quadruple with about 750,000 units installed annually. Large-scale coordination efforts like the CAHPP are crucial to align major players in the clean energy transition and support California’s climate goals. Scaling heat pump adoption in the world’s fifth largest economy will also act as a global market signal, with the potential to transform the world’s green economy. Energy-efficient heat pumps “As a global leader in intelligent climate and energy solutions, Carrier is committed to supporting the installation of six million heat pumps in California’s buildings by 2030,” said Kyle Gilley, Vice President of Government Relations at Carrier. “Electrification continues to be a solution for reducing greenhouse gas emissions and we are proud to be contributing to a greener tomorrow with our high quality, energy efficient, sustainable heat pump systems.” Inverter technology "The California Heat Pump Partnership represents the public-private collaboration that we need to accelerate the adoption of advanced heat pumps, such as those that utilize inverter technology," said David Calabrese, Senior Vice President of Government Affairs at Daikin. "As a global leader in providing heat pumps, we are committed to working with the California government, its utilities, the environmental community, and our industry to help meet the state's six million heat pump target and ensure that this technology is accessible to all Californians." enhance efficiency, load flexibility That agreement outlined commitments to help create manufacturing capacity, enhance efficiency The partnership also builds on an agreement made last year by ten of the world’s largest manufacturers, distributors, and suppliers of heating and cooling equipment for buildings to rapidly scale the heat pump market. That agreement outlined commitments to help create manufacturing capacity, enhance efficiency, and incorporate load flexibility to decarbonize California’s buildings. heat pump adoption “As a leading manufacturer serving the California market with efficient electric space, water heating, and pool heat pumps, Rheem is committed to supporting the state’s goals to install six million electric heat pumps by 2030,” said Chris Day, Vice President, Global Product Strategy, Marketing and Training at Rheem. “The objective of the Partnership and Market Advisory Board is to scale heat pump installations through collaboration with the entire supply chain and channel partners. I am excited about the ability of the Partnership to focus the state on the most important policy and market levers to drive heat pump adoption and Rheem’s role in enabling wide-scale building decarbonization.” saving money with decarbonization "Our company is pleased to participate and contribute its more than twenty years of heat pump water heating expertise to the California Heat Pump Partnership as the state of California embarks on its ambitious goal of installing six million new heat pumps and heat pump water heaters by 2030,” said Joshua C. Greene, Corporate Vice President for Government, Regulatory, and Industry Affairs at A. O. Smith. “Through the leadership of Governor Newsom and the California Energy Commission, these combined efforts will help emphasize the co-benefits that heat pump technology offers—decarbonizing the built environment to help mitigate the impacts of climate change and lowering utility costs that will save consumers money.” achieving ambitious heat pump goals “Decarbonizing the built environment is within reach and comes with improved air quality, lower energy use, and more personal comfort,” said Dana Fischer, Senior Director of Regulatory Strategy at Mitsubishi Electric. “Mitsubishi Electric Trane HVAC U.S. is ready to do our part in achieving ambitious heat pump goals in California. Together we can make changes for the better.” The California Heat Pump Partnership members Heat pump manufacturers, including A. O. Smith, Bradford White, Carrier, Daikin, Fujitsu General America, Inc., Johnson Controls, Lennox, LG, Mitsubishi Electric, Rheem, and Trane Technologies Distributor: Ferguson Electricity providers, including Pacific Gas and Electric, Edison International, Sacramento Municipal Utility District, and Ava Community Energy Policymakers representing the California Energy Commission, California Air Resources Board, California Public Utilities Commission, and the Office of Governor Gavin Newsom Innovation leader: Los Angeles Cleantech Incubator

LG Air Conditioning Technologies USA, a pioneer in the heating, ventilation, and air-conditioning industry, has opened the doors of its newest HVAC Training Academy outside of Boston. The new facility underscores LG's commitment to increasing the adoption of more sustainable HVAC products across the residential and commercial sectors. The latest of five Training Academies across the country, the Massachusetts facility will provide immersive lectures and hands-on lab experiences led by LG's seasoned instructors. This includes in-depth training on LG's heat pump technologies, such as the Inverter Heat Pump Water Heater and R32 Monobloc Air-to-Water Heat Pump. New heat pump adoption goals "Heat pump technology will be a key driver of building decarbonization, and contractor training is critical to making this market transformation a reality," said Steve Scarbrough, senior vice president and general manager of LG Air Conditioning Technologies, LG Electronics USA. "It was important for our latest academy to be in Massachusetts to support the state's new heat pump adoption goals and help homeowners and building managers reap the benefits of robust incentive programs like Mass Save, even during the hottest summers and coldest winters." Product recommendations and services The courses are designed to cover technical installation and service training, with an emphasis The Boston-area facility will serve as a hub for industry trade professionals across New England to learn about the latest HVAC technologies available, sharpen their installation and maintenance skills, and ultimately deliver better product recommendations and services to their customers.  The facility is scheduled to host thousands of training courses in its first year, guiding professionals through a spectrum of topics, spanning both the residential and commercial sectors, including installation, software evaluation, and best practices for servicing LG Air Solutions products. The courses are designed to cover technical installation and service training, with an emphasis on ducted and duct-free, VRF, heat pump water heaters and control solutions. Knowledge of new HVAC technologies Recognizing the industry's demand for more proficient specialists, LG is investing in further developing academies across the country to help bring training to an increasing number of professionals throughout the United States, elevating the education of the upcoming wave of contractors while empowering existing experts to hone their skills and deepen their knowledge of new HVAC technologies. This also includes 59 associate academies across the country and online training offerings for professionals who are unable to attend in person. LG is investing in further developing academies across the country to help bring training The academy's onsite lab will feature a range of LG heat pump products, including the Air-to-Water Heat Pump and ArtCool Mirror; several Multi V™ commercial air- and water-cooled outdoor units and a variety of indoor units, such as the High-Temperature Hydro Kit; the Split Compact M3 dedicated outdoor air system (DOAS); Multi-Position Vertical Air Handling Unit (AHU) and other ENERGY STAR® certified systems. LG's Energy Storage System equipment is also included in the training curriculum. LG appliances and HVAC systems LG's residential Home 8 ESS is a next-generation, all-in-one solution that enables homeowners to manage energy, provide backup power, and reduce dependence on the electric grid. The Home 8 ESS can be incorporated into a complete smart home environment with LG appliances and HVAC systems and can be managed by LG's ThinQ monitoring and control app to delegate how, where, and when the unit is used to maximize energy efficiency. Amenities at the facility include meeting rooms, a gym, a café, an auditorium, and a conference room The academy plans to evolve over the year, offering further training courses based on the changing industry landscape, new product solutions, and the needs of distributor associates and contractors. Amenities at the facility include meeting rooms, a gym, a café, an auditorium, and a conference room. LG's latest HVAC Training Academy LG's latest HVAC Training Academy, located at One Research Drive, Suite 110B, Westborough, Mass., was officially unveiled on May 15, with a ribbon-cutting ceremony attended by dozens of local industry pioneers and professionals. The Boston facility joins four other LG Training Academies located in Dallas; New Jersey; Orange County, Calif.; and Alpharetta, Ga.  As an ENERGY STAR Partner of the Year and a proud member of the Building Decarbonization Coalition, LG views contractor education generally and these academies specifically as keys to the electrification movement in the United States.