On 4 February 2026, the European Investment Bank has agreed on a ETS2 Frontloading Facility (“Facility“), jointly developed with the Commission, making EUR 3 billion available to accelerate investments in the decarbonisation of sectors covered by the new EU’s emissions trading system (“ETS2“), notably buildings and road transport. This will allow Member States that have transposed ETS2 to access the funding and pre-finance programmes before the new system kicks off in 2028 and revenues are collected.

The frontloaded funding will mainly drive investments in cleaner heating and cooling and reduce energy demand in homes and buildings in the EU. It will ensure that the transition in ETS2 sectors is both socially fair and economically efficient, and supports 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 national Social Climate Plans.

The Facility will also support measures to encourage a shift to public and shared transport, improve multimodality and expand e-mobility schemes. It will also help accelerate the uptake of zero-emission vehicles, e-bikes, and the deployment of recharging and refuelling infrastructure. There is the possibility of a top-up of the Facility at a later date.