Many HVAC experts and citizens maybe have never heard about the European CO2 Trading System (ETS2). To resume ETS2 is a CO2 based tax (60 €/tCO2) which will increase by around 1,3 ct/kWh the price on fossil fuels used in Buildings and Transport. The collected funding will be used for financing the EU energy just transition and especially the Social Climate Fund (65 B€).
The 5 November, EU Member states’ ministers agreed postponing the full operation of ETS2 from 2027 to 2028, a demand made by Poland and other eastern European countries (Slovakia, Hungary). France, Italy and Romania also supported the postponement of the launch of the ETS2 system by a year to 2028.
ETS2 was always seen as one of the most controversial elements of Europe’s climate legislation package, especially in countries with a limited share of electric vehicles and/or a high share of fossil-based heating.
For the HVAC industry, the European Council’s decision to postpone the launch of ETS2 to 2028 will have an important impact. Indeed a major part of this funding should be used to subsidized building renovation, especially for vulnerable households in energy poverty (Social Climate Fund). In 2024, 45 to 47 million Europeans (10%) could not adequately warm their homes.
ETS2 and the Social Climate Fund will be the core of Session 2 of the REHVA Brussels summit, held the 18th November in cooperation with the European Economic and Social Committee (EESC) and the contribution of the European Commission and Members of the European Parliament.
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