Linking various energy sectors has proven to be an effective way of decarbonizing the energy system. The interconnection between different sectors allows synergies between them to be exploited, thus integrating higher amount of renewable energy. Energy systems where different energy sectors and vectors are optimally operated in combined fashion are often called local multi-energy systems (MES). However, regulations play a key role for the large-scale deployment of local MES and often decide their economic and legal feasibility. Regulations are, therefore, seen as one of the major barriers to achieve the full potential of local MES. The objective of this paper is to assess policy and regulatory environment concerning implementation of local MES in several European countries. The proposed methodology allows case-by-case assessment of regulatory impact on local MES implementation. Recommendations on regulations are also provided based upon the analysis of focus countries. Further development is needed to allow comparison between different countries, finding markets which are most supportive for local MES and providing recommendations to policy makers.