Euroheat & Power

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 While many DHC activities are formally eligible, outdated and overly complex criteria prevent meaningful alignment and therefore restrict access to sustainable finance.

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.

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.

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.

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.

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.

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 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.