EU Climate and energy framework

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shortcomings affecting geothermal heat pumps (GHPs), whose performance has historically been misrepresented due to outdated and unrealistic testing assumptions. Under the current framework, geothermal heat pumps are assessed using inlet temperature assumptions set in 2013 that rely on unrealistically low brine temperatures. This has resulted in systematic underestimation of geothermal performance compared to other heat pump technologies, despite geothermal proven seasonal efficiency, stability and system value. We therefore welcome the Commission’s proposal to adjust the reference inlet temperature to 5 °C, which better reflects average operating conditions across Europe and restores fairness between technologies. This correction also aligns geothermal testing conditions with the way average conditions are already used for air-source heat pumps. We consider the proposed 5 °C reference temperature a pragmatic and robust compromise that improves representativeness without adding unnecessary complexity to the regulatory framework. It should be clearly defined as an average seasonal condition, not a conservative design extreme. While supporting a more differentiated testing approach in the longer term, we believe this revision is an essential step towards a level playing field and an accurate recognition of geothermal heat pumps within EU energy policy. Read EGEC's response to the consultation

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. 

On 20 December, EGEC commented on the Commission draft Delegated Act that sets out a reporting scheme to rate the sustainability of data centres in the EU. The Delegated Act stems from the recast Energy Efficiency Directive (Directive 2012/27/EU), which introduces a requirement to report on the energy performance and sustainability of data centres. 

EGEC welcomes the call for evidence on the 2040 climate targets as it provides regulatory certainty for the geothermal sector to adjust to climate neutrality as well as ensuring the need for effective regulatory support to replace fossil fuel consumption in buildings, transport, agriculture and electricity generation.

“Renewable go-to areas“ to be included in the RES Directive revision

The Commission is consulting Member States on proposal for a Temporary Crisis and Transition Framework with a reform of the State Aid rules. Here are the proposals for geothermal.

EGEC views on the EU Critical Raw Materials Act   EGEC, the voice of the European geothermal industry, is a not-for-profit association representing the entire value-chain of the industry across 28 countries. It is included on the European Transparency Register number: 11458103335-07. Further information can be found at www.egec.org.

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In a bid to accelerate renewable energy deployment, the European Commission is looking at means to accelerate permitting processes.