The objective of this chapter is to introduce the complex and evolving policy and regulatory framework relevant to geothermal energy in Europe. The analysis covers both shallow and deep geothermal technologies producing electrical power, heat, cold and hot water. It has a focus on the EU legislation and its implementation. Indeed, nowadays it is difficult to fully understand the legal system for geothermal energy in a given European country without some acquaintance with the overarching EU framework. To this end, it may be useful to clarify some preliminary principles governing the relations between the EU and its Member States. The competences between the two levels are defined in the Treaty on the Functioning of the European Union (EU). In areas like energy and the environment, where the competence is shared, the EU can legislate when its action is considered to be more effective than the action taken at national, regional or local level. In the framework of the functioning of the European Economic Area, EU rules can apply to Iceland, Norway and Lichtenstein. Additionally, they can also apply to other countries (e.g. Switzerland, Turkey) through bilateral agreements. National competences can be further devolved to regional and local authorities depending on the degree of self-governance in each country. The chapter is organised as follows: the first section provides an overview of the EU climate and energy framework, with a focus on the EU Climate and energy policy to 2030; Sect. 2 takes a closer look at State aid rules according to which Member States can provide incentives to reach the EU climate targets; finally, Sect. 3 draws some conclusions and sets the framework for the next 2040 climate & energy targets.