This document presents a comprehensive review of research works, regulatory frameworks, technical solutions, and commercial trends related to the integration of shallow geothermal energy (SGE) technologies in modern 5th-generation district heating and cooling (5GDHC) networks. This literature and market analysis is contextualized by the present geopolitical, environmental, and societal scenario in Europe. In this sense, decarbonization of the heating and cooling sector is a crucial piece in the energy transition puzzle to keep global warming below the critical threshold of 1.5 °C by the next century. Moreover, Ukraine war has added urgency to end up with fossil fuel dependency. The most relevant outcome of this literature review is the synergistic relationship between SGE, 5GDHC networks, and urban environments. SGE is most efficiently deployed in urban environments when it is part of a district heating and cooling network, and the modern concept of 5GDHC is the most suitable scenario for it. Since the potential contribution of SGE to the decarbonization of the heating and cooling supply is mostly untapped across Europe, this synergistic effect represents a possible boost. Hybridization with solar photovoltaics and/or storage makes it even more attractive. Outstanding cases are reviewed, challenges for the future are presented, and tools to overcome social reluctance and/or lack of awareness are described, along with a discussion of the stimuli for the deployment of SGE and 5GDHC networks. A particular focus on Mediterranean countries is presented, where SGE systems and DHC networks of any kind show a particularly low deployment compared to the rest of Europe. To this end, the second part of this work evaluates, justifies, and analyzes the possibilities and potentialities of their application in this zone.