Policy Documents

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)

On 8 January 2025, the Platform on Sustainable Finance published a draft independent report on preliminary recommendations for the review of the Climate Delegated Act and the addition of activities to the EU taxonomy for sustainable activities. EGEC responded to the call for feedback, which closed on 5 February 2025. EGEC also wrote to Valdis Dombrovskis, EU Commissioner for Economy and Productivity. EGEC called for simplification of the Sustainable Finance Taxonomy by placing geothermal on an equal footing with wind and solar energy in relation to lifecycle emissions, as the existing rules put a brake on capital market investments in geothermal.  Geothermal energy technologies are clearly identified as sustainable investments in the sustainable finance taxonomy. Geothermal power plants, geothermal district heating and cooling, geothermal cogeneration, geothermal heat pumps, UTES and other forms of thermal energy storage can all be eligible as a “sustainable investment”. Nevertheless, pursuant to the substantial contribution criterion to climate change mitigation, the production of geothermal electricity and heat and cool generation are all required to comply with an emission threshold of LCE<100g CO2e/kWh verified by independent third party. This criterion is not asked for other renewable energy sources.  EGEC contribution in brief  EGEC deems that the abovementioned threshold should be removed for all geothermal technologies for the following reasons:  As regards the respect to the ability to comply with and/or implement (e.g. technical feasibility) the technical screening criteria for substantial contribution of the activity, the criteria put in place for geothermal appear to be unfair when compared to the ones applied to other renewables. The EU taxonomy has so far sent the wrong signal for electricity, heat and cool generation from geothermal energy, despite the low CO2 eq/kWh.  After evaluating several scientifically based life cycle analyses for geothermal plants, it can be stated that the threshold value of 100gCO2-eq/kWh specified in the EU taxonomy for the LCA is always undercut for representative plants. This threshold should then be removed for all geothermal technologies.  The obligation to carry out an LCA is seen as an additional obstacle for geothermal heat and cool generation.  The mandatory performance of an LCA contradicts the general endeavour to speed up the planning and construction of geothermal plants.  Therefore, EGEC wishes to see the same criteria applied to all renewable energy technologies and proposes then to erase from Commission delegated Regulation (EU) 2021/2139 the threshold for geothermal and the LCA obligation required to geothermal activities to comply with the substantial contribution to climate change mitigation.    EGEC's response to consultation on the EU Taxonomy Regulation (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. 

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.

Brussels, 13th December 2024 – The European Geothermal Energy Council (EGEC) welcomes the publication of the International Energy Agency’s (IEA) historic and ground-breaking report outlining geothermal’s role in improving energy security and economic resilience whilst addressing the climate crisis.

Dan Jørgensen, the Commissioner-Designate for Energy and Housing, committed to European strategy for geothermal at his confirmation hearing in the European Parliament yesterday, November 5th, 2024. 

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