Policy Documents

To help the EU reach its 2030 climate and energy targets, the Regulation on the Governance of the Energy Union and Climate Action sets common rules for planning, reporting and monitoring. It also outlines the monitoring mechanism to ensure the EU’s compliance with international commitments under the Paris Agreement and the UNFCCC. On 18 December 2025, the European Commission launched a call for evidence and an open public consultation to help shape the upcoming revision of the Governance Regulation. On 19 March 2026, EGEC submitted its response to the call for evidence on the updating of the governance of the Energy Union and climate action. EGEC's response to the call for evidence on the updating of the governance of the Energy Union and climate action

Joint Statement in support of a strong and stable EU Emissions Trading System, signed by 21 organisations including EGEC. Europe’s competitiveness and energy security hinge upon a strong and stable EU ETS At the European Leaders Summit in Alden Biesen, the EU-27 Heads of State and Government reaffirmed that Europe’s energy transition remains the best strategy to achieve long-term strategic autonomy and low energy prices. Yet, some leaders suggested Europe must intervene now and backtrack on its flagship climate change instrument – the EU Emission Trading System. Europe’s competitiveness and energy security require the fast deployment of more clean energy and industrial decarbonisation solutions. Stable and credible policy instruments like the EU ETS are the bedrock for such investments. The EU ETS provides an efficient, market based, and technology-neutral signal guiding industry’s capital allocation, risk management and industrial transformation. It is important to recall a simple fact, however: the EU ETS works. Combined with marginal pricing in electricity markets, it provides a clear signal that prioritises the dispatch of clean energy in real time and incentivises investment in low-carbon technologies. Since 2005, emissions in ETS-covered sectors have fallen by 50% while economic output has grown by 71%, proving that decarbonisation and competitiveness go hand-in-hand. The EU ETS has been instrumental in driving Europe’s push for clean energy, while reducing dependency on fossil fuel imports. Europe should not repeat the mistakes from the energy crisis when ad hoc interventions in core market fundamentals undermined investments in competitive electricity assets and industrial decarbonisation projects. Undermining the EU ETS or introducing short-term corrective interventions will raise the cost of capital and delay Final Investment Decisions for clean energy projects. Such instability would undermine the bankability of clean energy and industrial decarbonisation projects — investments needed to lower European energy system costs, strengthen energy security, and enhance Europe’s competitiveness. At a time of geopolitical instability and industrial transformation, concerns about energy prices and competitiveness are legitimate and must be addressed. This is where the upcoming EU ETS review can provide a way forward: a targeted update of selected ETS parameters can enhance predictability and address emerging competitiveness concerns, while preserving the system’s integrity and long-term investment signal. With approximately €43 billion generated in 2025 alone, the ETS also offers a powerful opportunity to further reinforce competitiveness through strategic revenue recycling into industrial decarbonisation. Strengthened by the Carbon Border Adjustment Mechanism (CBAM), the EU ETS is a powerful tool for Member States to strategically invest in Europe’s long-term competitiveness, as highlighted by Mario Draghi in his European Competitiveness Report. Regulatory stability remains fundamental to drive investments and financing across Europe’s electricity sector and industrial value chains. We call on European Leaders to stay the course on the EU ETS for Europe’s energy security and industrial competitiveness amidst this dynamic geopolitical context. List of signatories: Carbon Capture & Storage Association Climate Group (international NGO) Danish Chamber of Commerce E3G (transnational think tank) Energy Traders Europe Eurelectric European Energy Exchange (EEX) European Geothermal Energy Council (EGEC) European Heat Pump Association (EHPA) French Electricity Union / Union Française de l’Électricité (UFE) German Association of Energy and Water Industries (BDEW) Hydrogen Europe Intercontinental Exchange, Inc. (ICE) International Emissions Trading Association (IETA) Nuclear Europe Renewable Hydrogen Coalition Rockwool SolarPower Europe Stegra Wind Europe World Business Council for Sustainable Development (WBCSD) Joint Statement (PDF version)

EGEC's response to the Proposal for a Regulation on establishing a framework of measures for accelerating industrial capacity and decarbonisation in strategic sectors (Industrial Accelerator Act), as published by the European Commission on 4 March 2026. EGEC’s position on the Industrial Accelerator Act

The European Geothermal Energy Council (EGEC) welcomes the European Commission’s initiative to remove barriers to Power Purchase Agreements (PPAs) and accelerate their uptake as tools to finance new clean electricity assets and provide long-term price stability for consumers. PPAs can help scale renewable generation while giving electricity buyers more predictable costs.

The European Geothermal Energy Council (EGEC) welcomes the European Commission’s review of the energy labelling and Ecodesign requirements for space and combination heaters. These revisions are both timely and necessary to reflect technological progress and ensure consistency with EU climate objectives. EGEC considers the review a key opportunity to correct long-standing shortcomings affecting geothermal heat pumps (GHPs), whose performance has historically been misrepresented due to outdated and unrealistic testing assumptions.

The European Geothermal Energy Council (EGEC) welcomes the European Commission’s initiative to review the Climate and Environmental Delegated Acts of the EU Taxonomy legislation. We strongly support the objectives of simplification, reduction of administrative burden, and alignment of Taxonomy with the EU’s industrial and climate ambitions. In this context, and with the intention of contributing to a more coherent and technology-neutral sustainable finance framework, we wish to suggest the following modifications. Remove the emission threshold and mandatory LCA requirements for geothermal technologies Create a coherent taxonomy category for geothermal heat pumps Clarify the scope of the “Manufacturing of renewable energy technologies” category Address practical challenges in DNSH criteria for DHC networks   Read EGEC’S full position  

EGEC 's proposals for a European Geothermal Strategy and Action Plan, published on 5 December 2025. 

With a letter to Commissioner for Economy and Productivity Implementation and Simplification Valdis Dombrovskis, EGEC provided its answer to a call for feedback by the Platform on Sustainable Finance on the draft report on preliminary recommendations for the review of the Taxonomy Climate Delegated Act and additional technical screening criteria for the EU Taxonomy. 

The European Commission ‘Competitiveness Compass’ released on Wednesday  29 January sent the right signal for the Clean Industrial Deal.  EGEC supports the initiatives set out for ensuring a competitive energy for people and business.  To supply affordable energy, more competition is required on energy markets to supply electricity, heating and cooling, and for storage. 

Brussels, 16th December 2024 – The European Geothermal Energy Council (EGEC) is delighted with the Hungarian Presidency for initiating the proposal and to all Member States for adopting today the Council conclusions.