Improving district heating for industry involves using low-carbon alternatives, such as electric boilers, heat pumps, and waste heat from other industries, to provide heat to industries for their operations. Currently, most district heating for industry relies heavily on fossil fuels to generate heat. Low-carbon alternatives have the potential to make a significant dent in the global emissions from industry, but such projects are also challenging to implement due to their scale and complexity, and there is currently a lack of publicly available data that would allow for a deeper analysis. Based on our assessment, we will “Keep Watching” this potential solution.
Based on our analysis, improving district heating for industry by integrating low-carbon heat sources has the potential to significantly reduce the use of fossil fuels and the emissions they generate. However, the lack of data, combined with the complexity of such projects and the growing interest in alternative decarbonization pathways, makes this a potential solution to “Keep Watching.”
| Plausible | Could it work? | Yes |
|---|---|---|
| Ready | Is it ready? | Yes |
| Evidence | Are there data to evaluate it? | No |
| Effective | Does it consistently work? | Yes |
| Impact | Is it big enough to matter? | Yes |
| Risk | Is it risky or harmful? | No |
| Cost | Is it cheap? | No |
District heating systems consist of a network of underground pipes that distribute heat to a large number of buildings, including industrial buildings. In the industrial sector, district heating is used by light industries and for processes such as drying, paper making, food processing, as well as space heating and even heat-driven chillers for refrigeration. Industry is well-suited to district heating because it typically has steady and predictable heat demand throughout the year. Current district heating systems rely heavily on coal and natural gas for heat generation, often as part of combined heat and power generation. Low-carbon alternatives for district heating can include electric heat pumps, solar thermal, deep geothermal, and even waste heat from other industries.
Shifting district heating for industry from conventional heat sources to low-carbon heat sources will significantly reduce emissions. Our analysis for district heating use by commercial and residential buildings shows that significant emissions can be avoided by shifting to electric boilers, heat pumps, and the use of waste heat (see Improve District Heating: Buildings). Similar outcomes are likely possible for industrial district heating use, and emissions reductions will increase as more renewables are integrated into the electricity systems used to power electric boilers and heat pumps.
District heating for industry currently produces significant emissions. According to the International Energy Agency (IEA), district heating for all applications accounted for 4% of global emissions in 2022, and roughly 40% of the heat energy from district heating was delivered to industry. China is a major adopter of district heating for industries, with the combustion of coal supplying much of that heat. The shift to renewable heat sources is likely to increase because both China and the EU have policies targeting the adoption of renewables in district heating. Because district heating systems serve multiple buildings, a single project to replace fossil fuels with renewables can have a large impact. Such projects also have the benefit of reducing local air pollution.
Although simple on paper, replacing fossil fuel systems with lower-carbon alternatives in district heating systems can be an extended undertaking involving many stakeholders and years of planning. Some low-carbon options may not be suitable for industrial processes that require higher temperatures than those needed for space heating. There is also a significant lack of publicly available data about how industry currently uses district heating and the opportunities and challenges involved in shifting to renewables. In the meantime, industrial heat pumps with higher temperature outputs (100–200°C) are increasingly available and could become a low-carbon competitor to the use of a conventional district heating system.
Bellevrat, E., & West, K. (2018). Clean and efficient heat for industry. IEA. Link to source: https://www.iea.org/commentaries/clean-and-efficient-heat-for-industry
Difs, K., Danestig, M., & Trygg, L. (2009). Increased use of district heating in industrial processes – Impacts on heat load duration. Applied Energy, 86(11), 2327–2334. Link to source: https://doi.org/10.1016/j.apenergy.2009.03.011
European Commission. (2022). Implementing the repower EU action plan: Investment needs, hydrogen accelerator and achieving the bio-methane targets. Link to source: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52022SC0230
Gouy, A., Mooney, E., & Voswinkel, F. (2023). Light Industry. IEA. Link to source: https://www.iea.org/energy-system/industry/light-industry
IEA. (2025). District heating. Link to source: https://www.iea.org/energy-system/buildings/district-heating#programmes
IRENA, IEA, & REN21. (2020). Renewable energy policies in a time of transition: Heating and cooling. Link to source: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Nov/IRENA_IEA_REN21_Policies_Heating_Cooling_2020.pdf
Lake, A., Rezaie, B., & Beyerlein, S. (2017). Review of district heating and cooling systems for a sustainable future. Renewable and Sustainable Energy Reviews, 67, 417–425. Link to source: https://doi.org/10.1016/j.rser.2016.09.061
Werner, S. (2017). International review of district heating and cooling. Energy, 137, 617–631. Link to source: https://doi.org/10.1016/j.energy.2017.04.045
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To register for Nicholas's Drawdown Ignite webinar, Individual Climate Action with Impact: Five Climate Superpowers to SHIFT the System, on September 17 at 1:00 p.m. ET, go here.
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Press Contact
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About Kimberly Nicholas, Ph.D.
Kimberly Nicholas, Ph.D., is a climate and sustainability scientist at Lund University in Sweden. She has published over 55 articles on climate and sustainability in leading peer-reviewed journals; writes for publications such as Elle, The Guardian, Scientific American, and New Scientist; and is the author of Under the Sky We Make: How to be Human in a Warming World, and the monthly climate newsletter We Can Fix It. Born and raised on her family’s vineyard in Sonoma, California, she studied the effect of climate change on the California wine industry for her Ph.D. in Environment and Resources at Stanford University.
About Project Drawdown
Project Drawdown is the world’s leading guide to science-based climate solutions. By advancing our understanding of climate solutions, fostering bold climate leadership, and promoting new narratives and voices, we are helping the world stop climate change as quickly, safely, and equitably as possible. A 501(c)(3) nonprofit organization, Project Drawdown is funded by individual and institutional donations.
SHIFT is the go-to guide for climate-concerned individuals ready to take the most effective, science-backed personal climate action
September 9, 2025 – Around the world, people are increasingly looking to take climate action in their personal lives. But many were left wondering what actions have the biggest impact and truly move the needle on climate change – until now. In collaboration with Project Drawdown, leading climate scientist and best-selling author Kimberly Nicholas, Ph.D., has launched the Super High-Impact Initiative for Fixing Tomorrow, or SHIFT. SHIFT is a free web-based guide that connects climate-concerned individuals with the most effective, science-backed personal actions they can take.
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