European Investment Bank Launches Advisory Initiative to Scale Up Sustainable District Heating Across Ireland

European Investment Bank Launches Advisory Initiative to Scale Up Sustainable District Heating Across Ireland

(IN BRIEF) The European Investment Bank (EIB) has launched an advisory initiative to help Ireland scale up district heating, supporting national efforts to decarbonise heating and lower energy costs. Working with the Sustainable Energy Authority of Ireland (SEAI) and the government, the programme will assist towns in developing viable district heating investments and delivery models, with Dublin and Cork leading as part of the European Climate Neutral and Smart Cities Mission. Announced by Minister Darragh O’Brien, EIB Vice President Ioannis Tsakiris, and SEAI CEO William Walsh, the initiative will draw on European expertise to expand renewable heating networks, create local jobs, and strengthen energy resilience. Aligned with Budget 2026 and the forthcoming Heat Bill, it represents a major step toward reducing Ireland’s heating-related emissions, which account for more than a third of the national total.

(PRESS RELEASE) LUXEMBOURG, 27-Oct-2025 — /EuropaWire/ — The European Investment Bank (EIB) has announced a new technical and financial advisory initiative to help Irish towns and cities develop large-scale district heating systems that can lower energy costs, reduce carbon emissions, and boost local economies. The initiative draws on European best practices and will play a central role in Ireland’s efforts to decarbonise its heating sector as part of its national climate strategy.

District heating networks distribute heat from centralized sources—such as renewable energy, industrial waste heat, or geothermal systems—to multiple buildings through insulated pipes. By combining various heat sources and leveraging renewable or surplus energy, these systems deliver stable and cost-efficient heating, shielding households and businesses from price volatility while cutting emissions.

The announcement was made in Malahide by Darragh O’Brien TD, Minister for Climate, Energy and the Environment, alongside EIB Vice President Ioannis Tsakiris and William Walsh, Chief Executive Officer of the Sustainable Energy Authority of Ireland (SEAI).

Under this new EIB Advisory engagement, towns across Ireland will receive technical and strategic support to identify viable district heating projects, design appropriate delivery models, and strengthen institutional capabilities. The initiative will also back a pilot project in a Climate Neutral City, contributing to Ireland’s participation in the European Commission’s Climate Neutral and Smart Cities Mission, of which Dublin and Cork are part.

Minister O’Brien described the initiative as a crucial step in Ireland’s clean energy transition: “District heating has huge potential to help us cut emissions and deliver affordable energy to Irish families. Working with the EIB and SEAI’s Centre of Excellence, we will develop a strong pipeline of community projects that create jobs, reduce costs, and strengthen our energy security for the generations ahead.”

EIB Vice President Ioannis Tsakiris highlighted that the initiative brings European expertise directly to Ireland: “District heating can make communities more resilient, reduce fuel poverty, and help achieve national climate targets. With the right planning and partnerships, Ireland can quickly catch up to European leaders in sustainable heating. Our advisory support will ensure these investments deliver real benefits for people and local economies.”

SEAI CEO William Walsh emphasized the importance of building awareness and capacity for district heating in Ireland: “While common across Europe, district heating is still relatively new to Ireland. It’s a proven solution for decarbonising heat and offers huge potential for growth. Working with the EIB will allow us to tap into international best practices and accelerate implementation.”

The initiative will be delivered under the InvestEU Advisory Hub in coordination with the European Commission’s Climate Neutral and Smart Cities Mission, and it builds upon previous EIB advisory roles that supported major investment in housing, energy retrofits, and decarbonisation projects in Ireland.

Heating accounts for over one-third of Ireland’s energy-related emissions, with more than 80% of homes still reliant on fossil fuels. Currently, district heating supplies less than 1% of national demand—highlighting a vast opportunity for expansion. Beyond reducing carbon emissions, district heating can lower household bills, reuse waste heat from industries and data centres, and create sustainable local jobs.

This initiative also complements Budget 2026, which commits €1.1 billion to accelerate Ireland’s energy transition, including €558 million for SEAI-led heat decarbonisation programmes. It further supports the upcoming Heat Bill and SEAI’s District Heating Centre of Excellence, aligning national plans with EU climate and energy priorities and the European Green Deal.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, a stronger Europe in a more peaceful and prosperous world and Europe’s capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

Approximately half of the EIB’s financing within the EU targets cohesion regions, where per-capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.

High-quality, up-to-date photos of the organisation’s headquarters for media use are available here.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. Through advisory support offered to project developers, the InvestEU Advisory Hub improves the quality of investment projects and their alignment with the EU long term policy goals.

About Climate Neutral and Smart Cities Mission

The EU Mission for Climate-Neutral and Smart Cities, under Horizon Europe, contributes to Europe’s clean and digital transition, aligning with the European Green Deal, the Policy Agenda for Cities, and the Clean Industrial Deal.

The Cities Mission will involve local authorities, citizens, businesses, investors as well as regional and national authorities to

1.     Deliver climate-neutral and smart cities by 2030 with over 100 having reached mission label milestone

2.     Ensure that these cities act as experimentation and innovation hubs to enable all European cities to follow suit by 2050

Climate-neutral and smart cities – European Commission

Media contact:

Richard Willis
r.willis@eib.org
+352 4379 – 82155

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank