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Energy · EU Taxonomy Activity Guide

Geothermal energy under the EU Taxonomy

Geothermal electricity and heat qualify under a single clean test: life-cycle greenhouse gas emissions below 100 gCO2e/kWh. Closed-loop and reinjecting systems pass comfortably; open systems in gassy fields need abatement evidence. DNSH adds subsurface-specific points: induced seismicity management, fluid handling and groundwater protection.

Activity ID
CCM 4.6
NACE code
D35.11 / D35.30
Objective
Climate change mitigation
Sector
Energy
01

Why this activity matters

Geothermal provides firm, weather-independent renewable energy for power and district heat, and its Taxonomy treatment is among the simplest in the energy chapter: one life-cycle threshold, technology-neutral across flash, binary and heat-only plants. The emissions question concentrates on the geofluid: fields with high dissolved CO2 need reinjection or abatement to stay under the ceiling.

Commercially, geothermal assessments support project financing of new developments and district heating conversions, both growth areas as heat decarbonisation accelerates. The DNSH set reflects the subsurface: seismicity monitoring and response protocols, well integrity, and brine and fluid management are the recurring documentary requests.

02

What alignment requires

One threshold, plus subsurface-aware DNSH. In summary:

AreaWhat is required (summarised)
Life-cycle emissionsLife-cycle GHG emissions below 100 gCO2e/kWh, evidenced by an ISO-compliant assessment; geofluid CO2 content and reinjection or abatement arrangements are the main variables.
Heat and cogenerationGeothermal district heat and CHP qualify under the parallel heat/cool and cogeneration activities using the same emissions logic.

Summarised for orientation; the assessment itself applies the full criteria text of the Delegated Acts as amended.

03

Where DNSH scrutiny falls

Pollution & subsurface

Geofluid and brine handling, H2S abatement where relevant, and well integrity documentation.

Water

Groundwater protection and reinjection permits; thermal impacts on aquifers for shallow systems.

Biodiversity

Site screening for drilling and plant footprint; protected-area proximity where relevant.

Climate adaptation

CRVA for surface installations; resource sustainability over the operating life.

04

Documentation that typically supports the assessment

05

How Censatim assesses it

Geothermal questioning centres on the geofluid and the loop design, because they drive the life-cycle figure, then covers the subsurface DNSH items that generic tools typically miss: seismicity protocols, reinjection permits and well integrity. Closed-loop district heating projects are among the fastest energy assessments we run.

Censatim is an expert-built EU Taxonomy assessment tool: describe the asset or activity in plain language, upload supporting documents, and answer a short set of targeted questions. The result is a criterion-by-criterion view with an In-line / Partial / Not aligned / Undetermined rating and a confidence level for each dimension. See the full methodology.

06

Frequently asked questions

What is the emissions threshold for geothermal under the EU Taxonomy?

Life-cycle greenhouse gas emissions below 100 gCO2e/kWh, the same threshold applied across several generation activities, evidenced by an ISO-compliant life-cycle assessment.

Can open-loop geothermal plants in high-CO2 fields qualify?

Yes, where reinjection or abatement keeps the life-cycle figure under the ceiling. The geofluid’s dissolved CO2 and its treatment are the decisive inputs to the calculation, so those arrangements are exactly what an assessment examines.

Does geothermal district heating qualify under the Taxonomy?

Yes, geothermal heat and cogeneration qualify under the parallel heat activities with the same emissions logic, and heat-network conversions are one of the most active commercial cases for geothermal assessments.

What DNSH issues are specific to geothermal?

The subsurface set: induced seismicity monitoring and response, well integrity, brine and geofluid handling, and groundwater protection around reinjection. Surface items like site screening and climate risk assessment apply as usual.

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