Wood biomass is the most abundant renewable energy resource in Slovenia, and the construction of biomass-based district heating (BDH) systems is a potential means of achieving greenhouse gas (GHG) emission reductions. This GEF project was designed to remove barriers to the increased use of biomass as an energy source, thereby reducing the fossil fuel consumption and associated greenhouse gas emissions. The project seeks to support the development of an initial set of BDH projects by covering the learning costs, reducing investor risks and demonstrating the technical and financial feasibility of the projects to the local communities and residents.