The European Investment Bank (EIB) has announced a €3 billion lending facility to support clean heating initiatives across the European Union. The funding is aimed at enabling EU governments to invest in heat pumps and other low-emission technologies, particularly to support low-income households in making the transition.
The financing will help cover upfront costs for clean heating upgrades, including building insulation and heat pump installations. Governments receiving the loans can repay the bank using future revenues from the EU’s upcoming carbon pricing system.
This mechanism is linked to the EU’s second Emissions Trading System (ETS2), which will place a price on carbon emissions from buildings and road transport starting in 2028.
The EIB’s funding is intended to accelerate national programs that reduce emissions and improve energy efficiency in the residential sector, with a focus on protecting vulnerable groups.
