The European Investment Bank has agreed a new “ETS2 Frontloading Facility”, developed jointly with the European Commission, making €3 billion available for investments linked to the EU’s new emissions trading system for buildings and road transport.
The funding is intended for EU member states that have already transposed ETS2 — the second EU emissions trading system, which will cover sectors including buildings and road transport — and will allow them to pre-finance programmes before ETS2 starts in 2028 and revenues are collected, the European Commission informed in a statement on Thursday.
The money will mainly support investment in cleaner heating and cooling and measures to reduce energy demand in homes and other buildings across the EU.
Low- and middle-income households are expected to be direct beneficiaries, with the facility described as aligned with the EU’s Social Climate Fund and national “Social Climate Plans.”
Commissioner for Climate, Net-Zero and Clean Growth Wopke Hoekstra said the €3 billion would be available to member states “to support low and middle income households in the clean transition”, including measures such as heat pumps and electric vehicle schemes.
Support for transport shifts and charging networks
The facility can also fund measures to encourage a shift to public and shared transport, improve multimodality — using more than one form of transport in a journey — and expand e-mobility schemes, the update said.
Support can also cover zero-emission vehicles, e-bikes and the rollout of recharging and refuelling infrastructure.
A top-up could be added at a later date, and the facility forms part of a package of “targeted measures” proposed by the Commission for a “gradual and smooth launch” of ETS2.
