Gradyent publishes Fit for 55 whitepaper together with Euroheat

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Glasgow Climate Summit has ended and cutting CO2 emissions has never been a larger priority. Together with Euroheat & Power, we wrote a whitepaper on the EU Fit for 55 implications on District Heating Systems.

On 14 July 2021, the European Commission published the long-awaited Fit for 55 Package, which targets achieving the EU’s 2030 goal of cutting emissions by 55% and reaching climate neutrality by 2050. Although it is still unclear how this will translate into national regulations and implementations given the negotiations and legislative process that are still to take place, heating networks should prepare for a changing regulatory landscape that will impact every District Heating (DH) company significantly.  

Overall, the package provides opportunities for the DH sector and underlines the role of DH networks in decarbonising the EU’s heating market. It also echoes the supportive tone in the European Commission’s recent publications regarding the growth and the importance of DH networks in enabling decarbonisation on the way to Net-Zero 2050 targets.  

Fit for 55 Package is an urgent call to action for the DH industry to decarbonise and accelerate the move away from fossil-fuel-based heat supply systems and increase renewable heat sources (including access heat from industry and data centers) in the DH networks.  

Here are the six key implications for DH companies:

  • EU considers District Heating even more important than before in reaching Net-Zero 2050 targets.

    • Every District Heating company will be covered by the new ETS system and needs to pay CO2 tax for all heating fuels.

    • Potential cost impact could be significant: even at current ETS price levels of 60 EUR/ton, the new ETS system could triple the effective cost of CO2 by 2030, if DH heating networks are not decarbonised.

    • Increased target for share of renewables to accelerate decarbonisation of DH Networks.

    • Biomass is under scrutiny as a renewable heat source.

    • Viability of natural gas as transition fuel is under pressure.

You can download the full whitepaper below.
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