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The heating sector represents one of the biggest challenges to achieving climate neutrality in regions with cold winters. Local municipalities will have an important role to play in this process. With regard to the current situation in Germany, this chapter examines the challenges that will arise with the transformation of the heating sector and considers the possibilities for action facing local municipalities. Subsequently, the chapter adresses in depth two main areas of action: the energy-efficiency retrofitting of existing buildings, and the transformation of district heating systems. With respect to the energy-efficiency refurbishment of building stock, it is important that cities and municipalities look at private, as well as public properties, and address concerns about historical preservation and social issues. District heating grids allow for the cost-efficient integration of renewable energy and waste heat sources; however, operating conditions, and in some cases network structures, must be modified accordingly.

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