Today, the European Investment Bank (EIB) announced the release of a €3 billion budget envelope under the ETS 2 frontloading facility. This funding -now unlocked and operational- aims to accelerate the energy transition of buildings, small industries and transport before ETS 2 becomes fully operational in 2027.
To ensure the effective decarbonisation of heating systems in individual and collective buildings, district heating networks, and industry, Member States are required to implement several key provisions under the Energy Efficiency Directive (EED), the Energy Performance of Buildings Directive (EPBD), and the Renewable Energy Directive (RED).
In this context, solar heat stands out as a ready-to-use, EU-made technology, capable of delivering significant savings. It is particularly well suited to benefit from CAPEX support provided by the €3 billion EIB frontloading measure, complemented by an additional €4 billion allocation from the Social Climate Fund.
Solar Heat Europe supports a narrative shift on ETS2: from focusing on burdens to focusing on solutions. ETS2 generates revenue that Member States can use to help citizens decarbonise heating, small industries and transport.
While a total of €6 billion was initially foreseen for this frontloading facility, we look forward to the second phase to fully unlock the potential of clean heating technologies.
We’d also like to acknowledge the valuable support of the EIB and key policymakers in making this frontloading budget possible and in promoting ETS 2, which is of utmost importance for the energy transition and for accelerating the deployment of clean technologies. Stability and predictability for investment are essential, not only for investors and citizens, but also to preserve a strong and competitive EU industry, including the solar thermal sector.