As EU Energy Ministers meet today (29/10/2026) in Luxembourg to discuss energy security (winter 2026/27 and long-term) and the post-2030 framework targets, EGEC is calling on policymakers to increase the utilisation of geothermal energy with a target of at least 250 GW total capacity (including heat, cooling and electricity) in the EU27 by 2040. EGEC is convinced that a geothermal-specific target must be included in the Action Plan for Geothermal for the upcoming European Geothermal Stakeholder Partnership, as announced in the framework of the Electrification Action Plan (published by the European Commission on 17 July 2026). Furthermore, we believe that the upcoming new Regulation on the Governance of the Energy Union and Climate Action (which will replace Regulation (EU) 2018/1999) will turbocharge investment in geothermal energy projects and facilitate significant private capital leverage. The current energy crisis requires new responses that address the challenges of the 21st Century. Repeating the same responses that were made to previous energy crises would represent a serious strategic failure. Geothermal must be at the heart of the answers to ensuring energy security and sovereignty with clean electricity and heating & cooling from home-grown and renewable sources at an affordable price for all consumers. EGEC proposes that the European Union should aim to increase the utilisation of geothermal energy with a target of at least 250 GW total capacity (including heat, cooling and electricity) in the EU27 by 2040. EGEC is also backing the #KeepTheTarget campaign, which calls on the EU to adopt a binding renewable energy target for 2040. Reaching the 250 GW target would enable geothermal energy to provide more than 1,000 TWh of energy per year, which represents around 20% of the EU’s projected Final Energy Consumption (not including transport) in 2040. Progress towards this target should be monitored by the European Geothermal Stakeholder Partnership (to be established in 2027) and in the new Regulation on the Governance of the Energy Union and Climate Action. “If the EU wants to achieve energy independence, a strong economy with affordable energy prices, and end our dependence on fossil fuels, then we urgently need to accelerate the deployment of geothermal solutions for heating and cooling as well as electricity generation,” says Philippe Dumas, EGEC's Secretary General. "Our analysis shows how the Member States can increase the combined capacity of installed geothermal systems from 41.4 GW currently to 250 GW by 2040, so that geothermal can cover 20% of the EU's total energy needs for buildings, industry, agriculture and services. This will also deliver benefits in terms of enhancing Europe's industrial competitiveness and reducing energy costs for consumers." See EGEC's proposal for a geothermal deployment target of "250 GW by 2040" at EU level (29 October 2026) See EGEC's proposals for the EU’s Geothermal Strategy and Action Plan (5 December 2025)

EGEC has co-signed a letter, addressed to the national governments of the EU Member States, calling on them to proceed with implementing the ETS2 emissions trading system, which will cover CO₂ emissions from fuel combustion in buildings, road transport and additional sectors (mainly small industry not covered by the existing EU ETS). In December 2025, it was announced that the start date for ETS2 had been postponed from 1 January 2027 to 1 January 2028. EGEC, together with more than 50 other organisations including industry associations, major companies and NGOs, call on the EU Member States to implement ETS2 as planned, and to "start using the early revenues available to help the most vulnerable consumers make the transition to clean local energy sources." "ETS2 and the use of its revenues, including the Social Climate Fund (SCF), are essential to accelerating the decarbonisation of the road transport and buildings sectors, strengthening Europe’s energy security, through increased electrification and energy efficiency, and creating the demand needed for European industry to invest in and scale clean technologies across the Union." "ETS2 should be implemented as planned and any further reform of the ETS2 should await the scheduled review in 2029. The priority should now be to ensure predictable implementation, effective use of ETS2 and SCF revenues and timely deployment of accompanying social and investment measures." According to the European Environment Agency, the buildings sector is a key contributor to greenhouse gas (GHG) emissions in the EU, representing 33% of energy-related emissions in 2023. These emissions result partly from the direct use of fossil fuels in buildings (e.g. oil and gas used in boilers for heating) and from the production of electricity and heat for use in buildings. The decarbonisation of heating and cooling is therefore essential for the EU to reduce emissions and meet its climate targets. The original EU Emissions Training System was launched in 2005. Since 2013, the EU ETS has generated more than €270 billion in revenues, with around three quarters allocated to Member States. The Innovation Fund, which is funded by the EU ETS, has invested over €15 billion in clean technologies and innovative projects since 2020. The Social Climate Fund (SCF) will use revenues from ETS2 allowance auctions and also from the existing EU ETS to fund measures such as energy efficiency improvements in buildings, clean heating and cooling, access to low- or zero-emission vehicles, or active mobility measures. The SCF is expected to mobilise at least EUR 86.7 billion between 2026 and 2032 (including co-financing provided by the EU Member States). Joint letter calling upon EU Member States to implement ETS2 Learn more about ETS2 (European Commission website) Learn more about the Social Climate Fund (European Commission website) Greenhouse gas emissions from energy use in buildings in Europe (EEA)

The European Commission has presented (on 9 September 2026) a series of legislative proposals that are relevant to the development and deployment of geothermal energy solutions in the European Union. According to EGEC, these proposals include some positive aspects, but there are also some missing elements and others that should be improved before the proposals are finally adopted. PHOTO: Stéphane Séjourné (Executive Vice-President - Prosperity and Industrial Strategy) and Ekaterina Zaharieva (EU Commissioner for Startups, Research and Innovation) presenting the European Commission's proposals in Brussels on 9 September 2026 (© European Union, 2026, licensed under CC BY 4.0 ) 1. European Innovation Act The Commission has proposed a new European Innovation Act, which it claims will strengthen the EU's long-term competitiveness, prosperity and technological sovereignty by helping Europe's most innovative ideas be developed, financed and scaled up in Europe. EGEC believes that the measures proposed by the Commission should boost innovation and help Europe to maintain its leadership in geothermal technologies. "The geothermal sector is one of the most innovative sectors in Europe’s economy," says Philippe Dumas, EGEC's Secretary General. "Each year, new research and innovation - also in terms of business models - enable the geothermal sector to provide better solutions to decarbonize our economy. Research and innovation also allows geothermal technologies to become less expensive, more efficient, and easier to install anywhere. It thereby helps to expand the market for these technologies and enhance the competitiveness of Europe's geothermal sector." See EGEC's latest report on Geothermal Innovation Trends (published in December 2025). 2. Public Procurement Rules EGEC also welcomes the European Commission's proposal for a new Regulation to modernise and simplify the EU's Public Procurement Rules in order to support effective investments in public services and infrastructure in line with the Union's policy objectives. "Following the Net-Zero Industry Act (NZIA), the Public Procurement rules should also consider non-price criteria on sustainability and resilience," says Philippe Dumas, EGEC's Secretary General. "Geothermal is a local renewable energy source with technologies provided by a European Supply Chain to supply affordable power, heating, cooling, storage and sustainable minerals to people, cities and industry. EGEC insists that geothermal technologies must be rewarded for these advantages to the economy in public procurements." 3. Affordable Housing Act EGEC is concerned that the Affordable Housing Act, announced by the European Commission does not include adequate measures to tackle energy poverty and accelerate the uptake of efficient heating and cooling - including geothermal solutions. EGEC is calling for an ambitious and comprehensive European Action Plan to build and renovate social housing, hospitals, nurseries, nursing homes schools, sport centres and other public buildings. Such a plan should enable these building to enjoy the benefits of geothermal heating and cooling solutions - including lower energy costs. "Over 60% of household energy bills are spent on keeping us warm, cool and providing hot water," says Sanjeev Kumar, EGEC's Policy Director. "These costs can be dramatically reduced by installing geothermal heating and cooling systems. The EU should empower municipalities and citizens to invest in truly affordable housing with sustainable heating and cooling using geothermal solutions."

Geothermal is central to providing Europe with secure, efficient and affordable energy whilst also achieving the EU’s climate goals. Geothermal is the only energy source that can provide continuous baseload renewable electricity, enhance the efficiency of heat pumps as well as decarbonised district and industrial heating and cooling systems, and deliver the least land-intensive and cheapest energy storage solutions, as well as the most environmentally sustainable means of extracting lithium and other raw materials. EGEC is convinced that a geothermal-specific target must be included in the Action Plan for Geothermal for the upcoming European Geothermal Stakeholder Partnership, as announced in the framework of the Electrification Action Plan (published by the European Commission on 17 July 2026). Furthermore, we believe that the upcoming new Regulation on the Governance of the Energy Union and Climate Action (which will replace Regulation (EU) 2018/1999) will turbocharge investment in geothermal energy projects and facilitate significant private capital leverage. The current energy crisis requires new responses that address the challenges of the 21st Century. Repeating the same responses that were made to previous energy crises would represent a serious strategic failure. Geothermal must be at the heart of the answers to ensuring energy security and sovereignty with clean electricity and heating & cooling from home-grown and renewable sources at an affordable price for all consumers. Geothermal technologies can reduce and stabilize energy costs over the medium to long term for both businesses and people. Ensuring short-term and long-term security for investment with an ambitious geothermal deployment target for 2040 is necessary in order to accelerate the take-up of geothermal solutions and thereby strengthen the energy sovereignty and economic competitiveness of the EU. Geothermal solutions encompass a wide variety of versatile technologies that cover electricity generation, heating and cooling, energy storage and critical raw material extraction. EGEC proposes that the European Union should aim to increase the utilisation of geothermal energy with a target of at least 250 GW total capacity (including heat, cooling and electricity) in the EU27 by 2040. Reaching this target would enable geothermal energy to provide more than 1,000 TWh of energy per year, which represents around 20% of the EU’s projected Final Energy Consumption (not including transport) in 2040. Progress towards this target should be monitored by the European Geothermal Stakeholder Partnership (to be established in 2027) and in the new Regulation on the Governance of the Energy Union and Climate Action. See EGEC's proposal for a geothermal deployment target of "25o GW by 2040" at EU level (29 October 2026).

Europe’s energy security, competitiveness, and prosperity depend on the rapid acceleration of geothermal investments combined with upscaling of domestic production capacity. Geothermal energy was recognised by Mario Draghi’s 2024 report as one of the last remaining European technologies in which European companies still have technological leadership, and the Act should capitalize on this strategic reality by establishing a mandate to cement Europe's position as global leader in geothermal technology and innovation. President von der Leyen stated, at the European Parliament’s Plenary in October 2025, that “The lowest prices for energy are in countries that produce abundant low-carbon energy – be it solar, wind, hydropower, geothermal or nuclear”. Therefore, the Industrial Accelerator Act (IAA) must provide opportunities for new or expanded manufacturing capacity to benefit from cheap and local geothermal electricity, heating, cooling or critical raw material usage. Geothermal benefits the European economy by: • Helps European Industry remain competitive. For example, BASF and Vulcan Energy have signed agreements to supply geothermal heat to BASF's Ludwigshafen chemical complex, Europe's largest chemical site. Volvo’s manufacturing plant in Koping, Sweden ̈, which specialises in the production of gearboxes for trucks, boats and buses, converted to geothermal in 2014. Kiilto Oy’s chemical plant in Lempäälä, Finland, commissioned a geothermal system in 2018 which saved over 350,00 CO2e emissions per year. The Stellantis plant in France invested in geothermal in 2025 and has cut gas consumption by 70%, CO2e emissions by 75% and water use by 15%. • Clean firm or “baseload” electricity and heating. For example, Geothermal power plants operate for the most hours per year (89-73%) compared to nuclear (79-74%), gas (37-34%), coal (45-42%), hydro (34- 31%), wind (25-23%) and solar PV (10-11%). • Lowers the cost of electricity grid impacts. For example, Element Energy’s research indicates that if the UK were to use Geothermal Heat Pumps to electrify all heating and cooling demand, it would save more than 26 TWh of electricity, which is equivalent to the planned Hinkley Point C power plant, which is estimated to cost £35 billion (circa €40 billion). • The most efficient and least electricity-consuming cooling. For example, a geothermal cooling installation in Paterna, near Valencia, reduced electricity consumption by 60%, contributing to lowering peak demand. Stadtwerke München, the energy utility owned by Munich’s local government, invested in communal cooling network in the Sendling district to reduce the electricity consumption linked to cooling by 70% across its 22 km grid. • Least land-intensive and lowest cost storage. For example, underground thermal energy storage systems can store large quantities of heat and cooling beneath existing urban developments, requiring only a fraction of the land needed for surface energy infrastructure. IRENA indicated that underground thermal energy storage costs are in the range of 0.1 to 35 USD/kWh, which makes it the cheapest of all storage options. Geothermal storage with a 90GW Eavor-LoopTM next generation geothermal system would replace an additional 200 GW of capacity to meet a 110 GW demand and save 9,000 km2 of land for other purposes. • Geothermal lithium and other critical raw materials. European experts pioneered lithium extraction from geothermal brines. The leading European suppliers of lithium hydroxide are located in Germany, France and Italy. Geothermal lithium is extracted rather than mined, which makes it the most environmentally friendly extractive technique. For example, geothermal lithium projects in Upper Rhine Valley have the potential to supply enough sustainable lithium for several hundred thousand electric vehicle batteries annually while simultaneously producing renewable energy and heat. Geothermal in the Industrial Accelerator Act

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.