The heating and cooling (H&C) sector is responsible for a central part of the EU’s energy demand, representing roughly half of the final energy consumption. As such, the decarbonisation of the H&C sector is crucial for a successful transition to a carbon-neutral energy system by 2050. Most of the energy demand for H&C is related to heating purposes, although the demand for cooling is increasing. Space and water heating needs in buildings represent over 60% of the demand for heating, followed by industry, which represents a further 32% of heating needs, the remainder is related to agriculture and both building and industry related cooling applications. The decarbonisation rate and uptake of renewables in the H&C sector has been relatively slow, as more progress is needed in the adjustments to heating equipment, heat delivery systems, building envelopes/industrial processes, required infrastructure and energy supply, and paying attention to vulnerable consumers.