On Thursday 5 February, the European Investment Bank (EIB) approved an ETS2 Frontloading Facility, developed jointly with the European Commission, making €3 billion available to accelerate investments in the decarbonisation of sectors covered by the EU’s new emissions trading system (ETS2), in particular buildings and road transport.
This will allow Member States that have transposed ETS2 to access funding and pre-finance programmes before the new system comes into force in 2028 and the corresponding revenues are collected.
The frontloaded funding will mainly drive investments in cleaner heating and cooling systems and reduce energy demand in homes and buildings in the European Union. It will ensure that the transition in the sectors covered by ETS2 is both socially fair and economically efficient, while supporting 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.
The ETS2 Frontloading Facility will also support measures to encourage a shift to public and shared transport, improve multimodality and expand electric mobility schemes. It will also help accelerate the uptake of zero-emission vehicles and electric bicycles, as well as the deployment of recharging and refuelling infrastructure. (Original version in French by Lionel Changeur)