The European Investment Bank (EIB) is launching new advisory support to help Irish cities develop district heating systems that could lower energy bills while cutting carbon emissions, the EIB announced. The initiative will help Dublin and Cork—both part of the EU’s Climate Neutral and Smart Cities Mission—move from plans to actual investments that bring cheaper, cleaner heat to homes and businesses.
District heating works by distributing heat from centralized facilities to multiple buildings through insulated pipelines, tapping into renewable sources, waste heat from industry and data centers, or other low-carbon options. The approach is common across Nordic and Central European countries but supplies less than 1% of Ireland’s heat demand right now. More than 80% of Irish households still rely on fossil fuels for heating, accounting for over one-third of the country’s energy-related emissions.
Minister Darragh O’Brien says the collaboration with the EIB and the Sustainable Energy Authority of Ireland will create a pipeline of community projects that cut costs for families and employers while creating local jobs. “By investing in sustainable heating infrastructure today, we are laying the foundation for a more resilient, energy-secure Ireland for future generations,” he said.
EIB Vice President Ioannis Tsakiris says the bank’s European experience can help Ireland quickly catch up to other countries leading in district heating. The advisory work will help prepare investments that keep energy affordable, support local economies, and meet national climate targets. William Walsh, CEO of SEAI, says district heating works well elsewhere and Ireland needs to change its approach. “Heat remains a big challenge, and district heating is crucial to meeting that challenge,” he said.
The support comes through the EIB’s Advisory facilities working with the European Commission’s Climate Neutral and Smart Cities Mission under the InvestEU Advisory Hub. It builds on recent EIB advisory work in Irish housing, retrofitting, and public sector decarbonization, and aligns with Budget 2026’s €1.1 billion allocation for Ireland’s energy transition.
