Objective: In this study is we have provided a prediction model for the improvement of heating system in Kosovo, following the implementation of an energy efficiency program, the consumption of energy commodities in heating system will decrease and the problem of deforestation will be mitigated. Theoretical Framework: We suppose a degree of reduction variable due to the renewable energy sources use, new technology options and energy efficiency toward GHG and air pollution reduction and policy initiative for District Heating in Kosovo. Method: For modelling impacts of the technology and policy options for reducing GHG and air pollution due to improvement of heating system in Kosovo, the model STELLA software has been used. Projection for emission factors and total annual emission for Air Pollutants and GHG (CO2) are calculated with US EPA methodology Results and Discussion: The resulting reductions of Air pollutants and greenhouse gas emissions by reducing the loss of heat and water and increasing the energy efficiency will have a direct and positive impact on the environment and climate change. Research Implications: Implementing the emission reduction policies EE, Renewable energy and introducing new technologies in heating system in Kosovo for the total emission of CO2, we will have reduction for about 20% (3.36 Mt CO2) in 2025 in comparison with (4.41 Mt CO2) in year 2015; also, we will have a significant reduction for other GHG. Originality/Value: This study contributes to the literature by impruvemment of heating system in Kosovo.