€3 billion to drive investment in decarbonising buildings and road transport*
Today, the European Investment Bank has agreed on a ETS2 Frontloading Facility, jointly developed with the European Commission, making €3 billion available to accelerate investments in the decarbonisation of sectors covered by the new EU’s emissions trading system (ETS2), notably buildings and road transport. This will allow Member States that have transposed ETS2 to access the funding and pre-finance programmes before the new system kicks off in 2028 and revenues are collected.
The frontloaded funding will mainly drive investments in cleaner heating and cooling and reduce energy demand in homes and buildings in the EU. It will ensure that the transition in ETS2 sectors is both socially fair and economically efficient, and supports the EU’s climate and energy objectives. Future investments will directly benefit low- and middle-income households making clean solutions more affordable for citizens, in line with the objectives of the Social Climate Fund and national Social Climate Plans.
Commissioner for Climate, Net-Zero and Clean Growth, Wopke Hoekstra, said: “With the EIB ETS2 Frontloading Facility, €3billion are made available to Member States to support low and middle income households in the clean transition. The aim is to accelerate the deployment of solutions that reduce energy and transport bills, such as heat pumps and EV schemes. This is part of a package of measures to ensure a smooth phase in of ETS2 and socially fair transition. And this will come on top of the Social Climate Fund.”
The ETS2 Frontloading Facility will also support measures to encourage a shift to public and shared transport, improve multimodality and expand e-mobility schemes. It will also help accelerate the uptake of zero-emission vehicles, e-bikes, and the deployment of recharging and refuelling infrastructure.
There is the possibility of a top-up of the Facility at a later date. This Facility is part of the package of targeted measures proposed by the Commission to ensure a gradual and smooth launch of the ETS2.