EGEC has co-signed a letter, addressed to the national governments of the EU Member States, calling on them to proceed with implementing the ETS2 emissions trading system, which will cover CO₂ emissions from fuel combustion in buildings, road transport and additional sectors (mainly small industry not covered by the existing EU ETS).
In December 2025, it was announced that the start date for ETS2 had been postponed from 1 January 2027 to 1 January 2028. EGEC, together with more than 50 other organisations including industry associations, major companies and NGOs, call on the EU Member States to implement ETS2 as planned, and to “start using the early revenues available to help the most vulnerable consumers make the transition to clean local energy sources.”
“ETS2 and the use of its revenues, including the Social Climate Fund (SCF), are essential to accelerating the decarbonisation of the road transport and buildings sectors, strengthening Europe’s energy security, through increased electrification and energy efficiency, and creating the demand needed for European industry to invest in and scale clean technologies across the Union.”
“ETS2 should be implemented as planned and any further reform of the ETS2 should await the scheduled review in 2029. The priority should now be to ensure predictable implementation, effective use of ETS2 and SCF revenues and timely deployment of accompanying social and investment measures.”
According to the European Environment Agency, the buildings sector is a key contributor to greenhouse gas (GHG) emissions in the EU, representing 33% of energy-related emissions in 2023. These emissions result partly from the direct use of fossil fuels in buildings (e.g. oil and gas used in boilers for heating) and from the production of electricity and heat for use in buildings. The decarbonisation of heating and cooling is therefore essential for the EU to reduce emissions and meet its climate targets.
The original EU Emissions Training System was launched in 2005. Since 2013, the EU ETS has generated more than €270 billion in revenues, with around three quarters allocated to Member States. The Innovation Fund, which is funded by the EU ETS, has invested over €15 billion in clean technologies and innovative projects since 2020.
The Social Climate Fund (SCF) will use revenues from ETS2 allowance auctions and also from the existing EU ETS to fund measures such as energy efficiency improvements in buildings, clean heating and cooling, access to low- or zero-emission vehicles, or active mobility measures. The SCF is expected to mobilise at least EUR 86.7 billion between 2026 and 2032 (including co-financing provided by the EU Member States).
Joint letter calling upon EU Member States to implement ETS2
Learn more about ETS2 (European Commission website)
Learn more about the Social Climate Fund (European Commission website)
Greenhouse gas emissions from energy use in buildings in Europe (EEA)
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