The European Investment Bank (EIB) has announced new technical and financial advisory support to help Ireland develop district heating systems aimed at cutting emissions, reducing energy costs and strengthening local economies.

District heating networks distribute heat from centralised facilities, using renewable or waste heat sources, to multiple buildings through insulated pipelines. Common across northern Europe, the systems allow communities to draw from a mix of renewable and surplus heat sources, offering more stable and predictable energy costs.

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

The new EIB advisory engagement will help Irish towns prepare viable district heating investments as part of the national strategy to decarbonise heating. The initiative will focus on identifying delivery models, strengthening institutional capacity and supporting a pilot project in a Climate Neutral City. Dublin and Cork are part of the EU’s Climate Neutral and Smart Cities Mission.

Minister O’Brien said district heating had “huge potential for Ireland’s clean energy transition”. He said the collaboration with the EIB and SEAI would develop “a strong pipeline of community-based projects that not only reduce our carbon footprint but deliver tangible cost savings for Irish families and employers”.

Mr Tsakiris said the EIB was bringing its European experience to Ireland. “District heating can cut emissions, reduce fuel poverty and make local communities more resilient,” he said. “With the right planning and partnerships, Ireland can quickly catch up to European leaders in district heating.”

SEAI Chief Executive William Walsh said heat remained one of Ireland’s biggest energy challenges. “It works really well in other countries, but it’s not something we are overly familiar with here in Ireland. That needs to change,” he said.

Heating accounts for more than one third of Ireland’s energy-related emissions, and more than 80 per cent of households still rely on fossil fuels. District heating currently supplies less than 1 per cent of national heat demand, highlighting significant room for expansion.

The support will be delivered through the EIB’s advisory facilities in coordination with the European Commission’s Climate Neutral and Smart Cities Mission, under the InvestEU Advisory Hub. It follows earlier advisory work that helped unlock major investment in housing, retrofitting and public sector decarbonisation.

The announcement complements Budget 2026, which allocates €1.1 billion to accelerate the energy transition, including €558 million for SEAI programmes focused on heat decarbonisation. It also aligns with the forthcoming Heat Bill and the work of SEAI’s District Heating Centre of Excellence.

The EIB said the initiative would create a pathway for large-scale deployment of district heating in Ireland, ensuring alignment with European Union best practice in sustainable heat development.