Vattenfall wants to reduce the company's carbon dioxide emissions from 2030 onwards as part of reaching the Paris Agreement's 1.5-degree target.
Part of their goal is to phase out the use of coal.
On Tuesday, the state energy company announced that they want to build a new district heating system in London to reduce greenhouse gas emissions.
Many British homes today are heated with natural gas and heating is estimated to account for a fifth of the country's total greenhouse gas emissions.
But the country's government recently presented a major investment in the expansion of district heating networks in the coming years, of around 270 million pounds (3.2 billion kronor).
Vattenfall's project in London will probably be covered by state aid.
Want to use low or zero emission sources
Construction is expected to begin in south-east London in 2022, and will take place in three phases.
In 2024, 10,500 homes will be connected to the grid and in 2030, 75,000 homes will be heated by it, only to be fully expanded ten years later.
Vattenfall expects to use low- or zero-emission sources such as geothermal heat and surplus heat from industries.
Today, there are 14,000 district heating networks in the UK, which supply around 480,000 customers with heat.
However, this is only two percent of Britain's demand, a figure that the government hopes to increase to 18 percent by 2050.