Policy Documents

EGEC signs a Declaration of Support to foster the sustainable integration of data centres in the energy system  5 June 2026  The European Geothermal Energy Council (EGEC) welcomes the adoption of the European Commission's Strategic Roadmap for Digitalisation and AI in the Energy sector, and the opportunity for the geothermal sector to sign a Declaration of Intent with the European Commission, the data centre operators, the energy-related parties and the public authorities.  The Roadmap sends a strong political signal that digitalisation and AI must become central enablers of Europe's clean energy transition and industrial competitiveness and geothermal is a key solution to allow an affordable transition.   The rapid deployment of AI technologies and cloud computing is expected to significantly increase Europe's electricity and cooling demand. The Geothermal energy sector is ready to provide an immediate and long-term solutions to these challenges.   Geothermal is:   A baseload, domestic, renewable energy source present all over Europe  Capable of generating electricity 24/7  Supplying heating small and large scale  Supplying free or active cooling   Providing underground energy storage esp for waste heat  Enabling the extraction of critical raw materials, including lithium, produced in Europe.  Unlike many clean technology, geothermal is made in Europe. The resource is local, stable, and shielded from geopolitical shocks, making geothermal uniquely positioned to become a strategic partner for Europe's future AI and data infrastructure.   Geothermal electricity has a unique value in generating base load electricity 24/7 anywhere in Europe.  Geothermal cooling technologies have already demonstrated strong operational performance in Europe. Existing projects show that geothermal free cooling can dramatically reduce electricity consumption while maintaining reliable year-round operation for high-demand digital infrastructure. Underground technologies also support seasonal balancing for heat and cooling demand, including the storage and reuse of waste heat generated by data centres.   The geothermal sector already uses AI and advancing computing technologies to improve exploration, drilling, reservoir modelling, operations and predictive maintenance. Digitalisation and AI can significantly reduce project development risks and lower the levelised cost of geothermal energy. The sector therefore welcomes the Roadmap's ambition to strenghten research and innovation for AI applications in the energy sector.  Permitting remains one of the main bottlenecks for geothermal deployment in Europe. Digital permitting platforms integrating geological mapping and environmental assessments could substantially reduce delays and increase investors certainty.   Representing EGEC at the signature with the European Commission and the data centre industry, EGEC board members highlighted:  “On the occasion of this Declaration of Support, we underline the essential role of sustainable power supply for data centres, with geothermal ensuring reliable baseload renewable energy. Maximising waste heat recovery is equally key to integrating data centres into local energy systems. At the same time, strengthening Europe’s manufacturing technologies is strategic to deliver resilient, competitive, and decarbonised digital and energy infrastructure.” - Marco Baresi - VP EGEC    "Today’s signing marks a significant step in turning our Strategic Roadmap on Data Centers into reality. This tripartite agreement demonstrates how collaboration between the European Commission, industry, and energy partners can unlock new opportunities for sustainable digital growth. By integrating geothermal energy into the development of data center infrastructure, we are creating a model that strengthens energy security, supports decarbonization, and enhances our competitiveness in the global digital economy. Together, we are building the foundations for a future where digital innovation and clean energy advance hand in hand." - Kamila Piotrowska - VP EGEC  "Europe's energy sovereignty will increasingly depend not only on access to energy resources, but also on leadership in digital technologies and artificial intelligence. As AI transforms how energy systems are designed, operated, and optimized, geothermal energy has a unique role to play by providing reliable, domestic, and low-carbon power and heat that can support the growing energy demands of digital infrastructure. This Strategic Roadmap sets out a shared vision to strengthen Europe's resilience, competitiveness, and ability to shape its own energy future." - Carla Barrera - EGEC board member  EGEC therefore is now willing to be among the first signatories of a tripartite agreement on sustainable integration of data centres. 

Policy document published by EGEC on 15 May 2026 Additional substantive measures for the Geothermal Action Plan

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.