Energy Transition

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shortcomings affecting geothermal heat pumps (GHPs), whose performance has historically been misrepresented due to outdated and unrealistic testing assumptions.

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

Planned for publication in the second quarter of 2026, the EU Heating and Cooling Strategy will support the implementation of current legislation to accelerate decarbonisation of the sector and improve its efficiency and system integration through integrated planning of energy infrastructure district heating and cooling development waste heat recovery It will address both supply and demand by accelerating the deployment of clean heating and cooling, and by encouraging their use in important sectors such as buildings and industry. EGEC submitted its response to the stakeholder consultation on 19 November 2025.   EGEC's response to consultation on the Heating and Cooling Strategy (PDF)

In the preparations for the first ever European Affordable Housing Plan, the Commission carried out the Affordable Housing Dialogue throughout 2025. The scope was to collect knowledge and data from stakeholders across Member States. EGEC contributed to the call for evidence that closed on 4 June 2025.   EGEC's response to consultation on the European Affordable Housing Plan (PDF)

The Modernisation Fund supports the modernisation of energy systems and the improvement of energy efficiency in 13 lower-income EU Member States. Established in 2018 for the 2021-2030 period, it aims to help the beneficiary Member States achieve their climate targets and the objectives of the European Green Deal. The beneficiary Member States are Bulgaria, Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovenia and Slovakia. In 2025, the European Commission launched an initiative to evaluate the Modernisation Fund’s operating rules. EGEC submitted its contribution to the Call for Evidence on 26 May 2025.   EGEC response to the consultation on the Modernisation Fund (first evaluation of the operating rules) (PDF)

In February 2025, the European Commission announced in the 'Communication on the Clean Industrial Deal: A joint roadmap for competitiveness and decarbonization' a new auction to promote the decarbonization of key industrial processes, drawing on the experience of the hydrogen auctions of the Innovation Fund. It was proposed to allocate the budget of up to EUR 1 billion through fixed-premium auctions in support of projects that decarbonise industrial process heat through innovative electrification technologies such as heat pumps, electric boilers, resistance heating, induction heating, plasma heating and other solutions as well as renewable heat solutions (solar thermal and geothermal). First ideas for the auction scope and design were presented and discussed with stakeholders during a Workshop on 16 April 2025. As a follow-up, the European Commission invited all interested stakeholders to provide feedback on the proposed design elements of the new auction by participating in a survey. EGEC took part in the survey on 15 May 2025.   EGEC's response to consultation on Innovation Fund Heat Auction (PDF)

On 25 June 2025, the European Commission adopted a new State aid framework accompanying the Clean Industrial Deal (CISAF), which is designed to help Member States support the development of clean energy, industrial decarbonisation and clean technology. EGEC contributed to the public consultation which closed on 25 April 2025.   EGEC's response to consultation on the Clean Industrial Deal State Aid Framework (CISAF) (PDF)

In January 2025, the European Commission opened a call for feedback on Renewable energy auctions – Implementing Act on non-price criteria in the framework of the Net-Zero Industry Act. EGEC submitted its contribution on 17 February 2025.   EGEC contribution to the Call for feedback on Renewable energy auctions – Implementing Act on non-price criteria (PDF)

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. 

IOGP, the international association of oil and gas producers, outlined a series of measures required to create market maturity for geothermal across Europe. They identify three key measures: i) Strategic funding; ii) policy support, and iii) risk management as the key ingredients of Europe’s geothermal action plan. Read The Full Statement Here