This study contributes to an enhanced knowledge of European District Heating and Cooling (DHC) markets, needed to develop policies, initiatives and projects contributing to achieving the decarbonization targets set by the European Green Deal. In particular, the study aims at providing, through a detailed investigation led for all EU Member States as well as the UK, Norway, Iceland and Ukraine, a deep analysis of the DHC market (Block A), as well as the policy framework (regulation and support measures) and urban regulations affecting DHC use in buildings and industries (Block B). It also aims at studying the various technical possibilities to further integrate renewable and waste heat and cold sources in local energy systems. To illustrate current best practices, ten European case studies of DHC systems using renewable energy, waste heat and waste cold sources are analysed, through a holistic approach, aiming at identifying virtuous, replicable, cost-efficient DHC developments in various environments (Block C). The results are based on a thorough literature review, surveys and interviews with national and local stakeholders as well as internal knowledge and experience of the consulting team.