The European Union does not have a uniform policy regarding the utilization of thermal water binding on the member states. In its guideline, the European Economic and Social Committee emphasizes that the need for a secure, inexpensive, environmentally sound and sustainable supply of usable energy is at the heart of the Lisbon, Gothenburg and Barcelona European Council decisions.

EU energy policy is thus pursuing three closely related and equally important objectives, namely to safeguard and enhance competitiveness, security of supply and the environment. The key to potential solutions can lie only in further intensive research and development, which should include setting up pilot plants and evaluating them from both a technical and an economic perspective, gradually working towards commercial launches of new energy sources. The problems of finite resources and emissions are compounded by the forecast two- or even three-fold increase in global energy requirements by 2060 because of population growth, and the need for less developed countries to catch up, however, this tempo does not catch up with the increase of worldwide energy requirement.

One of the EU's main objectives in this field is to achieve a significant medium- and long-term increase in the use of renewable energy sources, which can also help protect the climate. In this context, geothermal energy can make a significant contribution. Therefore, the European Economic Committee is urging that the opportunities offered by the European Research Area should be utilised through a comprehensive, transparent and coordinated energy research strategy, supported by all the players involved. It also endorses the relevant R&D programmes of Member States and their efforts, by adopting appropriate support measures, to facilitate and encourage the commercial launch of geothermal energy on a trial basis. According to the valid EU resolution, the following measures are needed:

• effective R&D programmes at national and European levels to bring scientific and technological development in the field to the point where technologies and individual stages of the various processes can be developed and tested at an adequate number of test sites,
• legislation to promote private investment (e.g. laws on the sale of electricity to the grid, heating and air-conditioning systems) designed to provide initial, tapered support for commercial launches so as to make energy sales during the launch stage attractive for a limited period, not least in order to test, enhance and evaluate economic potential. In particular, this also applies to contractual arrangements between energy supply companies and consumers,
• action to offset the risks associated with prospecting and tapping geothermal reservoirs, e.g. in sinking boreholes and locating viable sources.  
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Geothermal energy exploration and utilization have a minor environmental impact. The impacts are well controllable by professional planning and field work, monitoring, documentation and assessment of processes and results. Despite of this fact, the legal diversity by which some member states are regulating the utilization of geothermal sources, particularly the environmental impacts of the activity, is surprising. The diversity of legal backgrounds, moreover, contradictory legal regulations and their general complexity are seriously impeding the utilization of geothermal energy, both in states established firmly on the market, and in economies opening towards renewable sources. More supportive governmental policies and efforts are needed for the fast development of the sector, however, harmonization is an urging point regarding environmental issues as well⁴ – for that adequate professional background knowledge and data measured and analyzed on the reference site is needed.

In Hungary, the utilization of geothermal energy is regulated by energetic, agricultural and environmental (water protection) aspects. Regarding environmental factors, acts on surface water protection divide thermal water utilization into 3 categories setting limit values for each, and establishing requirements for the disposal of used water. The categorization is based on the specifications of Act LIII of 1995 on the General Rules of Environmental Protection and Act LVII of 1995 on Water Management. The first category contains utilization in facilities serving medical purposes (medicinal baths); in this case, regulations regard the special importance of utilisation from the point of view of the national economy. In case of medicinal baths, the environmental aspect is subordinated to economic and health benefits, so there are no strict regulations concerning the emission of contaminants. The second category contains utilization in thermal baths; its significance is still considerable, though it is of lower priority than medicinal utilization. The third category contains utilization for energetic purposes, using only the heat content of thermal water, so there are no pollutants discharged into the water. In this case, there are no changes in the chemical and biological features of the water, therefore, according to current regulations this is the only case when used water can be reinjected (has to be reinjected) into the aquifer. According to paragraph 3 of article 15 of Act LVII of 1995 on Water Management: “In case of mineral, medicinal and thermal waters, medicinal and medicinal-recreational utilizations enjoy priority. Thermal water extracted for energetic utilization needs to be reinjected following the specifications of special regulations”  

EU member states have a diverse legal framework concerning the reinjection of thermal water. Beside Hungary, it is only in Latvia, where the reinjection is compulsory; the most common case is that reinjection is either totally forbidden (at the same time surface discharge is conditioned to limit values), or it is allowed by certain conditions, while environmental sustainability aspects are basic EU and national requirements. Beside EU legal disharmony, the contradictory Hungarian regulation is obvious and impeding development. Facilities abstracting thermal water have to pay a determined waste water fine, according to production and the absorbing layer. The aim of the fine is to foster environmental friendly utilization, the reduction of waste water discharge and pollution, and the cessation of pollution. At the same time, the discrimination between thermal water users is unjustified by setting different limit values when determining fines depending on the purpose of thermal water usage even if the amount and mineral composition of the waste water is the same. Pollution during medicinal usage is not lower than in the case of energetic usage, moreover, the prohibition concerning reinjection of thermal waters from baths and medicinal pools is meant to prevent the discharge of pollution into the groundwater body unable to self-purification. The differentiation does not privilege thermal baths (Paragraph 3 of article 15 of the Act on Water Management), it is discriminating utilization for energetic purposes in an unjustified way. Moreover, the energetic user, whose thermal water runs through a bath or is used for medicinal purposes, will pay a much smaller fine than other energetic consumers. It is also to be considered that for these users reinjection as a technological process is not obligatory, but, on the contrary, it is forbidden. It is clear that this regulation does not follow either a uniform legislative intent, or a clearly explainable professional position, and it has a very unfavourable effect on the exploration of geothermal energy, in some cases making the usage of renewable energy simply uneconomical. On a long term, sustainable exploration and our common environmental interests require that the abstracted water quantity is returned to its original site, however, from agricultural (e.g. greenhouse) producers it requires a very big financial investment due the lack of accessible and reliable technology, which could jeopardize the profitableness of the agricultural activity. At the same time, the untreated discharge of the water is also a vital matter.¹¹ Therefore, the modification of the legal background, the support of the legislation concerning reinjection / surface discharge requirements, limit values and professional execution by professional knowledge and data are needed and relevant from a policy point of view. 

There are no EU directives or community decrees concerning the complex utilization of thermal water and geothermal energy or the method and extent of imposing waste water fines.  The member states develop their own measures on the complex protection of waters regarding the local situation and considering the Water Framework Directive. In Hungary, legislation on the complex utilization of thermal water as a partially renewable energy source cannot be postponed any longer. The principles of Hungarian energy policy harmonize with EU principles. These aim the security of supply (moderation of import dependence), competitiveness (moderation of expenses), and sustainable development (protection of the environment) – however, we cannot find a regulation concerning geothermal energy at a legal level; there are regulations only in government decrees and parliamentary decisions, many of main laws concerning the use of thermal waters are 20-30 years old. For the better utilization of thermal water amendments are needed, furthermore, it is necessary to specify how the utilization of geothermic energy can be financed from the budget (or through tenders). The more exact, professionally more justified insertion of geothermics into tendering systems can have a direct economic benefit with quickly realizing developments (geothermal public works projects, power station project, support of agricultural utilization, heat pump projects with small budget). It also can generate jobs, increase the economic competitiveness, and on a long term, it can result in a real competition on the energy market – because of the situation of the main aquifers, mainly in developing regions. The legislation determining the actual fine raises concerns, a drastic increase of fines is not justified, its justification is not appropriate from a professional point of view. According to the growing number of experiences and further observations (at more reference sites) on the discharge of used thermal water into surface absorbers, a more favourable reconsideration of the actual natural salt content limit value of thermal waters is justified when regulating waste water fees. The Government Decree No. 220/2004 (VII. 21) should be amended and modified; and the limit value specified in the annex of the Ministry of Environment Decree No. 28/2004 (XII. 25) should be reconsidered. In the annexes of the Government Decree No. 314/2005 (XII. 25) on environmental effect study and licensing procedure of uniform environment utilization, the list of activities should be detailed. In order to foster the spread of renewable energy sources, and thus geothermic energy, a support system fostering investments needs to be realized, which can provide benefits for not only producers, but it also can save money for consumers. Furthermore, it needs to be guaranteed that investments and technologies are easily available for them as well.