HARNESSING THE DECARBONIZATION POTENTIAL OF DISTRICT HEATING IN EUROPE

District heating systems are crucial for decarbonizing heat and have the potential to operate with 100% renewables. However, despite their potential, district heat still relies heavily on fossil fuels. Europe has the largest district heating market, with significant variations in its share across different regions. While fossil fuels still make up a significant portion of the fuel mix, Europe is a leader in renewable district heating. The integration of renewable sources, sector coupling, and waste heat recovery are proven strategies for decarbonizing district heating. Existing networks also have the potential to transition to cleaner approaches. The transition to cleaner district heating systems requires proper support and can take several years. The economics of district heating must be considered, as it often has lower societal costs compared to individual solutions. The implementation of comprehensive district heating sector reforms is necessary to achieve climate neutrality and maximize the potential of renewable and sustainable heat solutions. Europe has the opportunity to lead the global race in renewable and sustainable heating and cooling.