The European Investment Bank, together with the European Commission, is launching a special ETS2 Pre-Financing Facility. It provides for the allocation of €3 billion for investments in reducing emissions in sectors that will be covered by the new EU emissions trading system from 2028. These include construction and road transport.
The European Commission expects that access to pre-financing will facilitate the transition to ETS2 for member states.
"The aim is to accelerate the implementation of solutions that reduce energy and transport bills, such as heat pumps and electric vehicle schemes. This is part of a package of measures to ensure a smooth introduction of ETS2 and a socially just transition. And this will be done in addition to the Social Climate Fund," said European Commissioner for Climate Action Wopke Hoekstra.
Energy efficiency at home and at work
The funds will stimulate investment in what people experience every day – modern "clean" heating and cooling systems, as well as reducing the energy consumption of homes in the EU.
The European Commission expects that such decisions will primarily affect low- and middle-income households, for whom the "green transition" often seems expensive and unattainable. That is why the mechanism has been agreed with the Social Climate Fund and national social plans.
Impact on the Transport Sector
Some of the measures supported by the ETS2 Pre-Financing Mechanism aim to make European transport more environmentally friendly. The plan to reduce environmental impact includes:
- encouraging a shift to public transport instead of individual vehicles, which will reduce the number of vehicles on the road and, consequently, emissions from them;
- supporting a transition to zero-emission transport. Specifically, this refers to electric vehicles and e-bikes, along with the development of charging station networks for them.
The European Commission does not rule out that the size of the fund may be increased in the future. This instrument is part of a broader package of targeted measures aimed at making the rollout of ETS2 gradual, smooth, and socially equitable.
EcoPolitic has previously explained how the EU ETS operates. Ukraine is preparing to implement its own Emissions Trading System (ETS) in 2028.
