What’s EUp: The latest news on heating and cooling

Why local ambition needs clearer frameworks and stronger support from the EU


Local authorities are key players of the heating and cooling (H&C) transition. To better understand their needs, Energy Cities recently surveyed its members on their knowledge, priorities, and challenges around H&C in the EU context. The responses highlight both the ambition and the hurdles cities face—and point to a clear call for support, tools, and policy alignment. 

Local voices on heating and cooling: feedback from our members  

Our members signaled a strong need for clarity and updates on the forthcoming EU Heating & Cooling Strategy as well as the Affordable Energy Action Plan. As municipalities work toward decarbonisation, timely and transparent information on these frameworks is essential to help local actors align their planning efforts with EU-level ambitions. However, when asked about their cities’ readiness to take action on H&C planning, many respondents expressed neutral confidence. This reflects a situation where motivation is present, but systemic and structural obstacles continue to hold back progress. 

Strong foundations first: legal, technical and political support 

The survey results highlight that having a clear national or regional legal framework, supported by robust technical assistance, is fundamental to unlocking local H&C planning – echoing our EU Tracker recommendations. These foundations provide the necessary stability and guidance for cities to act effectively. Yet even with a strong framework, cities need better access to reliable data on energy demand and supply, and must be equipped with sufficient internal resources and expertise. 

Despite some cities showing leadership, one of the most cited barriers remains the lack of political prioritisation of heating and cooling at local level, often exacerbated by limited knowledge of local energy systems. This lack of visibility and urgency risks delaying the transition to cleaner, more efficient solutions. 

What the EU Strategy must deliver  

To meet its climate goals, the European Commission must adopt a comprehensive Heating and Cooling (H&C) Action Plan that integrates all renewable heat and cold sources. This strategy should establish clear decarbonisation pathways for industrial and urban heat, accelerate permitting, and unlock investment in clean technologies and infrastructure. Just as the EU successfully scaled renewable electricity, it must now do the same for heating and cooling—with local authorities at the core. 

Municipalities are pivotal to this transformation. Yet, they need tailored support, including: 

  • Practical tools (e.g., benchmarks, templates, heat mapping guides), 
  • Accessible funding aligned with local planning timelines, and 
  • Technology guidance suitable for diverse building and urban contexts. 

Current funding is fragmented and poorly matched to H&C realities. Energy Cities calls for an EU Heat Facility, modeled after programs like InvestEU and the EUCF. This facility would pool resources, simplify access for local governments, and provide guarantees to de-risk investments in clean and recovered heat solutions. 

A successful strategy must also enable system-wide change. This includes: 

  • Phasing out gas networks to create space—politically and physically—for clean alternatives, 
  • Promote and support renewable technologies  
  • Fiscal reform to favor electrification and renewables through fairer energy taxation, 
  • Strengthening local governance roles in planning and operating district heating, 
  • Socialising connection costs to ensure equitable access for all citizens. 

Retrofitting existing buildings remains a major challenge and must be met with dedicated financing and technical assistance, especially for vulnerable households.

The EU should also support regional collaboration, especially among small and cross-border municipalities, enabling them to pool resources and expertise through joint technical offices.

Curious to learn more about the EU Heating and Cooling Strategy? Dive into our conversation with Delia Villagrasa, Director of the Cool heating Coalition.