China＇s　carbon　dioxide　(CO2)　emission　ranks　the　highest　in　the　world.　CO2　emission　from　urban　central　heating,　which　has　an　average　annual　growth　rate　of　10.3%,　is　responsible　for　4.4%　of　China＇s　total　CO2　emission.　The　current　policy　for　improving　urban　central　heating　focuses　on　replacing　coal　with　natural　gas.　This　paper　analyzes　the　existing　situation　and　problems　pertaining　to　urban　heating,　and　evaluates　the　potential　for　reducing　energy　consumption　and　CO2　emission　by　heat　pump　heating.　The　results　show　that　the　current　policy　of　replacing　coal　with　natural　gas　for　urban　central　heating　decreases　energy　consumption　and　CO2　emission　by　16.6%　and　63.5%,　respectively.　On　the　other　hand,　replacing　coal-based　urban　central　heating　with　heat　pump　heating　is　capable　of　decreasing　energy　consumption　and　CO2　emission　by　57.6%　and　81.4%,　respectively.　Replacing　both　urban　central　and　decentralized　heating　with　heat　pump　heating　can　lead　to　67.7%　and　85.8%　reduction　in　energy　consumption　and　CO2　emission,　respectively.　The　decreases　in　CO2　emission　will　account　for　24.5%　of　China＇s　target　to　reduce　total　CO2　emission　by　2020.　Crown　Copyright　(C)　2013　Published　by　Elsevier　Ltd.　All　rights　reserved.