Centralizing the heat source of the district saves energy, reduces greenhouse gas emissions, and results in substantial reductions in nitrogen oxide and sulfur oxides, which can cause air pollution and acid rain. It also has a significant effect in mitigating the heat island phenomenon.
In addition to the social benefits of district heating and cooling from the environmental viewpoint, there are various other benefits to clients (users of heating and cooling, and building owners) that arise from sharing an external, centrally managed heating and cooling source. These include economic efficiency, reliability, and power and space savings.
Eliminating boiler and chiller facilities from individual buildings and facilities helps to prevent urban disasters and improves the urban landscape, making cities more pleasant and habitable. In this way, district heating and cooling helps planners to create better cities.