This study reviews the history anddevelopment of district heating and district cooling,together referred to as district energy in North America,Western Europe, Asia, Eastern and Central Europe, and theFormer Soviet Union (FSU). Experience from other parts ofthe world where DH systems exist could be beneficial to DHindustry managers and regulators in Eastern and CentralEurope and FSU countries in modernizing their managementsystems and improving their policies and practices to allowfor the attraction of capital that is urgently needed. Thereport reviews, in a systematic manner, the keyinstitutional, economic, financial, technical, andenvironmental issues in the countries of Eastern and CentralEurope and the FSU with the goal of arriving atoperationally relevant issues and defining the awareness andunderstanding of the nature of activities which can lead toincreasing energy efficiency and the attractiveness ofdistrict energy to private financing.