On 30 June 2025, leading European industry associations issued a joint statement reaffirming their support for the EU Emissions Trading System for buildings and transport (ETS 2), calling it a key instrument to decarbonise heating and cooling systems in buildings.
The signatories—including EHPA, EHI, Solar Heat Europe, APPLiA, and GCP Europe—urged the EU to implement ETS 2 as planned from January 2027, without reopening the Directive. They emphasised the system’s role in accelerating the transition to renewable heating technologies and energy-efficient solutions by putting a carbon price on fossil fuels used in households.
The statement highlights the need for ETS 2 revenues and the Social Climate Fund to be earmarked for supporting building renovations and the adoption of renewable-based heating appliances. It also recommends that the EU Commission establish a temporary lending facility by 2026 to enable Member States to begin early investments in decarbonisation and mitigate potential impacts on low- and middle-income households.
Citing 2023 Eurostat data, the group noted that renewable energy covered only 26.2% of final energy use in the heating and cooling sector, far from the 49% target set by the Renewable Energy Directive (RED III) for 2030. The current building renovation rate of under 1% further threatens compliance with EU efficiency goals.
The associations warned that delays or changes to ETS 2 could undermine investor confidence, hinder clean technology adoption, and increase Europe’s reliance on fossil fuel imports. They stressed that safeguards already built into the legislation—such as price caps and the Social Climate Fund—are designed to protect consumers from price volatility.
“Delaying or watering down the ETS 2 Directive risks eliminating a demand driver for the deployment of clean heating technologies and energy efficiency solutions and increasing the uncertainty for the industry,” the statement concluded.