Image: Christian Lua/Unsplash
The European Investment Bank (EIB) has announced a new €3 billion ($3.5 billion) facility to invest in cleaner heating and cooling and reduce energy needs in buildings and road transport.
The ETS2 Frontloading Facility, jointly developed with the European Commission, will be available to EU Member States that have implemented the new EU Emissions Trading System (ETS2), which will introduce carbon pricing for fuel combustion in buildings, road transport and small industry, before its planned start date in 2028.
It will allow these Member States to pre-finance programs before the start date of ETS2 and revenues will be collected, with the investments expected to directly benefit low- and middle-income households.
“The aim is to accelerate the deployment of solutions that reduce energy and transport bills, such as heat pumps and electric vehicle controls,” said Wopke Hoekstra, Commissioner for Climate, Net-Zero and Clean Growth. “This is part of a package of measures to ensure a smooth implementation of ETS2 and a socially just transition. And this is in addition to the Social Climate Fund.”
The frontloading facility is also expected to support measures that encourage a shift to public and shared transport and the expansion of e-mobility programs and help accelerate the introduction of zero-emission vehicles, e-bikes and the deployment of charging and refueling infrastructure.
Other measures proposed by the commission to ensure a smooth launch of ETS2 include amending the decision on the market stability reserve and implementing an earlier start of ETS2 auctions to provide an early price signal. According to a statement on the EU’s website, there is a possibility for an additional facility at a later date.
The EU opened its first European auction for the decarbonisation of industrial process heat in December. This is known as the IF25 Heat Auction and is aimed at supporting electrified and directly renewable heat production with an available amount of up to € 1 billion. The auction closes for registrations on February 19.
This content is copyrighted and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.
Popular content
