Today, sustainable energy development is one of key issues on European development agenda. The article describes one of sustainable energy development promoting tool - the eco-labelling scheme for district heating and cooling systems elaborated within the framework of Intelligent Energy for Europe program project "Ecoheat4cities" and partially funded by European Agency for Competitiveness and Innovation. The scheme is based on measured energy and environmental performance data of the district heating and cooling system and considers primary non-renewable energy usage together with the share of renewable energy and carbon dioxide emissions calculated using life-cycle analysis methodology. The "power bonus" approach is used for performance indicators of the heat generated in cogeneration installations. An analysis of a number of Lithuanian district heating companies using elaborated labelling criteria shows positive trends towards fulfilling Lithuania's energy policy goals. The labelling scheme gives opportunity for policy makers and urban planners to compare different heat supply options and decide upon exploiting district heating advantages and benefits for reaching EU energy and environment policy goals.