Euroheat & Power

Delivering sustainable heating and cooling is fundamental to achieve Europe’s climate neutrality ambition. District heating and cooling (DHC) can contribute to advancing this goal, supporting the delivery of the energy and climate objectives outlined in the EU Green Deal.

The EU Taxonomy has not yet delivered its intended effect for the district heating and cooling (DHC) sector. While many DHC activities are formally eligible, outdated and overly complex criteria prevent meaningful alignment and therefore restrict access to sustainable finance.

POSITION PAPER Ref. Ares(2021)2019117 - 22/03/2021 22 MARCH 2021 EHP RESPONSE TO THE IIA ROADMAP ON THE EPBD Euroheat & Power, the association representing the district heating and cooling (DHC) sector in Europe and internationally, supports the European Commission’s intention to revise the Energy Performance of Buildings Directive (EPBD).

Opening of the attached position paper · the full paper is on the Commission’s record (source link above)

The proposed European Competitiveness Fund (ECF), part of the 20282034 Multiannual Financial Framework, represents an important opportunity to accelerate Europes clean energy transition and strengthen competitiveness. To achieve this, the Fund should clearly prioritise buildings, heating, and cooling, as these sectors are central to affordable, secure, and decarbonised energy.

Heating and cooling account for half of the energy consumed in the European Union. Despite significant and essential measures aimed at reducing demand – it is still expected to represent most of the demand in 2050. Delivering sustainable heating and cooling solutions to ever-growing cities is fundamental to achieve Europe’s climate neutrality ambitions.

DHC supplies heat to around 12% of Europes total heat demand and serves more than 70 million EU citizens . As a flexible, locally anchored solution, DHC can rapidly integrate renewable energy, waste heat, and clean technologies. Today, over 40% of the heat in DHC systems is already decarbonised, an upward trend supported by ongoing investment and policy alignment . Yet, major challenges remain.

District heating and cooling (DHC) supplies around 13% of Europe's heat demand and serves more than 80 million EU citizens. As a flexible, locally anchored solution, it can rapidly integrate renewable energy, waste heat, and clean technologies. Over 44% of the heat in DHC systems is already decarbonised. Euroheat & Power fully supports the EU's climate objectives and a well-functioning ETS.

Euroheat & Power, the association representing the district heating and cooling sector in Europe and beyond, welcomes the European Commission initiative to assess the effectiveness of the Energy Efficiency Directive (EED) in delivering the energy and climate objectives announced in the EU Green Deal.

Euroheat & Power (EHP), representing the District Heating and Cooling sector (DHC) in Europe and beyond, is committed to pursuing the full decarbonisation of its European networks, in 2050, to contribute to the goals set out in the Paris Agreement (see our sector’s pledge). EHP also supports a higher ambition for 2030 to set the EU on track to carbon neutrality by 2050.

The 2003 Directive on Energy Taxation is obsolete and needs to be reviewed so that a) it provides an effective framework for Member States to reach their decarbonisation targets and b) facilitate a smooth functioning of the internal market.

Dear Madam, dear Sir, Please find attached the position paper of Euroheat & Power, the European district heating and cooling association, on the post-2030 renewable energy legal framework. For any questions, please do not hesitate to reach out. Kind regards.

Euroheat & Power welcomes the Commissions efforts to simplify the framework and better align it with the latest developments in EU energy and climate legislation. This review is timely and necessary. As a tool intended to guide capital towards sustainable activities, the Taxonomy should be practical, coherent and capable of supporting investment in sectors essential to the transition.

To set the EU on track to 2050, the upcoming post-2030 framework needs to prioritise heating and cooling decarbonisation, phasing out fossil fuels, in full coordination with the implementation of the energy efficiency first principle. This was pointed out by 15 Member States in May 2024, echoing the call of 18 European organisations.

The IED’s main purpose is to set environmental protection standards for the industry and provide a framework for industrial operations to meet the identified best available techniques. Euroheat & Power (EHP), representing the District Heating and Cooling (DHC) sector in Europe and beyond, support the ambition to achieve a high level of environmental protection.

Euroheat & Power strongly supports the objectives of the European Grids Package to accelerate infrastructure deployment, simplify permitting, and enable a more integrated and decarbonised energy system. To deliver on these goals, the Package should formally recognise district heating and cooling (DHC) as Europes fourth energy grid, alongside electricity, gas, and hydrogen.

The rapid growth of renewable electricity in Europe has been a major success, with wind and solar now covering almost half of generation. Yet this shift has also exposed the limits of todays system. In 2024, wholesale prices across Europe fell by around 20%, but volatility increased sharply, and average prices remain more than 40% above pre-crisis levels.

Heating and cooling make up half of Europes energy use, over a quarter of its CO2 emissions and a large share of its fossil imports. This dependence has exposed EU consumers and industries to rising energy prices, and energy security concerns.

According to the IEA, wastewater treatment plants can account for up 30-40% of municipal energy consumption. While these plants are energy consumers, they are also a significant source of thermal energy that is largely untapped. Wastewater discharged from domestic, industrial, and commercial buildings has temperature ranging from 10 to 25°C.

Dear Madam/Sir, Please find attached a position paper by Euroheat & Power, the European District Heating Association. For any questions, please do not hesitate to reach out to [name removed], Senior Policy Advisor ([email removed]). Thank you in advance for taking into account our recommendations. Kind regards, [name removed]

Dear Madam, dear Sir, Please find attached the position paper of Euroheat & Power, the European district heating and cooling association, for the post-2030 legal framework for energy efficiency. For any questions, please do not hesitate to reach out to me. Kind regards, [name removed]

Heating and cooling accounts for half of Europes energy demand and remains heavily dependent on fossil fuels. The potential of local clean and renewable heat sources is significant in Europe and heavily untapped, and district heating and cooling is a solution which could deliver such sustainable heat sources to households, services and industries.

Euroheat & Power welcomes that the European Commission has chosen a targeted approach to the revision of the EMD instead of deep changes. It is crucial to avoid the re-appearance of revenue caps for existing and/or new assets. Revenue caps can limit investment in the energy sector and reduce the competitiveness of the market.

Affordable energy and competitiveness depend on accelerating the heat transition. Heating and cooling account for around half of the EUs final energy demand and still rely heavily on fossil fuels, which keeps households and industry exposed to import dependence and price volatility.

Europes existing energy security rules were designed for a fossil-fuel-based system focused on gas and electricity. Todays challenges call for a more coherent and coordinated approach to energy security across sectors and levels of governance. Heating and cooling account for nearly half of EU energy use and 35% of gas demand, making this sector central to Europes resilience.

Dear Sir or Madam, On behalf of Euroheat & Power, the European district heating and cooling association, I have the pleasure to submit the following feedback to the consultation on the rating scheme for data centres in Europe. District heating and cooling networks are the only energy infrastructure able to recover waste heat sources to supply buildings and industry.

The decarbonisation of heating and cooling (H&C) sectors is an essential milestone to achieve the ambitious climate and energy targets of the European Union (EU). In fact, H&C accounts for about half of the total end energy demand in Europe and they are by far the largest energy consuming sectors.

Euroheat & Power is the international network representing the district energy sector. We promote the rapid roll-out of sustainable heating and cooling in Europe and beyond, with the objective of full decarbonisation before 2050. As we work towards this common objective shared with the EU, we appreciate the efforts of the Commission to drive progress in the run-up to carbon neutrality in 2050.

The proposed Performance Regulation (COM(2025) 545 final) represents a positive step toward coherent and transparent EU budget governance under a single rulebook. Euroheat & Power welcomes the inclusion of climate and environmental spending criteria and the high recognition of district heating and cooling (DHC) activities in Annex I.

Euroheat & Power welcomes the opportunity to contribute to the proposed draft implementing act concerning the revision of greenhouse gas emissions monitoring and reporting within the revised EU Emissions Trading System (EU ETS) framework, referred to as the MRR revision. EHP regards the recent EU ETS revision as significant progress towards industrial sector decarbonisation.

Euroheat & Power welcomes the European Commission’s proposal to improve the protection of ‘critical entities’ in the EU and is grateful for the opportunity to provide feedback. The Directive 2008/114/EC on critical infrastructure is providing a focus which is too narrow and some provisions/definitions which are too general to address in an effective manner the rapidly changing picture of systemic risks faced by…

Euroheat and Power (EHP) highlights the critical role of private lenders in advancing Europes energy efficiency and climate goals. Buildings account for 40% of Europes energy use, with heating, cooling, and hot water making up the majority of demand, often met by fossil fuels.

District heating and cooling (DHC) are critical for transitioning away from fossil fuels, currently serving 77 million Europeans and offering scalable decarbonization solutions with a 2030 phase-out target for new fossil fuel additions according to the Efficient District Heating and Cooling requirements of EED.

ETS2 is an important component of the EU climate framework, extending carbon pricing to fuel use in buildings is crucial to enable the decarbonisation of the heating and cooling sector. Its effective implementation will depend on clear and workable rules that avoid unintended double counting or unintended coverage and provide a reliable remedy where this nevertheless occurs.

Euroheat & Power welcomes the opportunity to provide feedback on the draft Commission Implementing Regulation amending Implementing Regulation (EU) 2019/1842 regarding adjustments to the free allocation of emission allowances due to activity level changes (the "draft ALCR"). We value the Commission's efforts to enhance clarity and coherence following the EU ETS revision.