Solar Heat Europe and 76 organisations urge EU institutions to fast-track the full implementation of ETS2 in 2028, warning delays could stall €50 billion in investment and slow progress towards decarbonising heating and transport.
Solar Heat Europe has joined 76 companies, industry associations and civil society organisations in an open letter pressing EU institutions to implement the new Emissions Trading System for buildings and road transport (ETS2) without further dilution or delay.
The coalition warned that rolling back key elements of ETS2 or deferring its launch would erode the policy certainty firms require to commit capital to low‑carbon heating, cooling and mobility solutions. Solar Heat Europe said the one‑year postponement already adopted is estimated to cost member states roughly €50 billion in lost auction revenues, a shortfall that could constrain public support for deployment programmes.
ETS2 was introduced in 2023 to extend carbon pricing to fuel combustion in buildings, road transport and small industry, with the aim of complementing existing climate measures and driving investment that helps the EU reach its 2030 and 2050 targets. According to the European Commission, monitoring and reporting were due to begin in 2025 and the system was originally intended to be fully operational in 2027. EU institutions and member states agreed in December 2025 to shift the start date to 2028 amid negotiations on competitiveness and social impacts.
Signatories to the letter urge the Commission, the European Parliament and national governments to proceed with operationalisation in 2028 with no further delays or an expanded carbon budget; to adopt strong national climate, social and fiscal measures that reduce demand for allowances, lower barriers to clean investments and protect lower‑income households; and to ensure transparent, participatory processes when designing national ETS2 investment plans.
Industry stakeholders say a credible ETS2 framework is critical to unlock private finance for clean heating technologies, including solar thermal systems. At the same time, EU and member‑state measures are being assembled to smooth the transition. The European Investment Bank and the Commission have devised an ETS2 frontloading facility to make €3 billion available to pre‑finance decarbonisation programmes in member states that transpose ETS2, enabling investments before auction revenues begin to flow in 2028, according to a Commission statement. Separately, the Social Climate Fund established under the ETS revision is intended to help vulnerable households, micro‑enterprises and transport users cope with price impacts, with member states required to submit Social Climate Plans to access funding.
For industrial actors involved in decarbonisation of heat and related value chains, the practical stakes are clear. A stable, predictable carbon price and complementary national measures reduce investment risk and can accelerate retrofit activity, heat pump and solar thermal deployment, and upgrades in small industrial processes. Conversely, policy uncertainty can defer projects and raise the cost of capital, slowing the pace of emissions reductions across the covered sectors.
The coalition’s appeal highlights the tension policy makers must resolve between maintaining ambition and managing competitiveness and social equity. Implementing ETS2 alongside targeted fiscal and social instruments will determine whether carbon pricing becomes the catalyst for accelerated clean‑heat investment or a source of regulatory friction that delays the energy transition.
- https://solarheateurope.eu/2026/03/10/solar-heat-europe-co-signs-an-open-letter-for-an-ambitious-implementation-of-ets2/ – Please view link – unable to able to access data
- https://climate.ec.europa.eu/eu-action/climate-strategies-targets/progress-climate-action/eu-climate-action-progress-report-2025/chapter-2-eu-emission-trading-system_en – The European Union’s Emission Trading System (ETS) is a cornerstone of its climate strategy, aiming to reduce greenhouse gas emissions. In 2023, the EU introduced ETS2, a new system covering emissions from fuel combustion in buildings, road transport, and small industries. This system is designed to complement existing policies, helping member states achieve emission reduction targets under the Effort Sharing Regulation. The carbon price set by ETS2 incentivises investments in building renovations and low-emission mobility. The system is set to become fully operational in 2027, with monitoring and reporting of emissions starting in 2025.
- https://build-up.ec.europa.eu/en/news-and-events/news/eu-postpones-carbon-pricing-buildings-2028-climate-law-deal – In December 2025, EU institutions and member states agreed to postpone the start of Emissions Trading System 2 (ETS2) from 2027 to 2028. This decision was made to integrate the measure into the revised climate law, considering progress reviews and competitiveness. ETS2 is designed to place a carbon price on emissions from heating and other fuel use in buildings and on fuels for road transport, complementing the existing EU ETS that addresses industrial and energy emissions. The delay reflects negotiations on aligning climate ambition with economic and social considerations across member states.
- https://climate.ec.europa.eu/news-other-reads/news/unlocking-eu3-billion-investment-opportunities-decarbonisation-buildings-and-road-transport-2026-02-04_en?prefLang=lt – The European Investment Bank has agreed on an ETS2 Frontloading Facility, jointly developed with the Commission, making €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.
- https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/ets2-buildings-road-transport-and-additional-sectors_en?prefLang=fr – As part of the 2023 revisions of the ETS Directive, a new emissions trading system named ETS2 was created. Separate from the existing EU Emissions Trading System (EU ETS), this new system will cover and address the CO₂ emissions from fuel combustion in buildings, road transport, and additional sectors (mainly small industry not covered by the existing EU ETS). The ETS2 will complement other policies of the European Green Deal in the covered sectors, helping member states achieve their emission reduction targets under the Effort Sharing Regulation (ESR).
- https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI%282025%29772878 – The EU aims to become the first climate-neutral continent in the world by 2050. Since the announcement of the European Green Deal and following the adoption of the European Climate Law in 2021, the EU’s climate agenda has been built even more around the principle of carbon pricing. The EU emissions trading system (ETS) is, today, the cornerstone of the EU’s strategy to achieve this vision, complemented by a mix of industrial, energy, and climate policies. Currently, the EU ETS covers stationary (power and industrial) installations, domestic aviation, and maritime transport. Following the revision of the EU ETS Directive, greenhouse gas (GHG) emissions from buildings, road transport, and additional sectors not covered by the existing EU ETS will be covered under a new ETS2. Carbon pricing is expected to regulate around 75% of EU GHG emissions from 2027.
- https://reforms-investments.ec.europa.eu/tsi-2024-flagship-support-social-climate-fund-and-revised-eu-emissions-trading-system_pt – Second, such revision introduces a new and separate emissions trading system for buildings, road transport, and additional sectors (ETS2), which is estimated to include more than 10,000 regulated entities EU-wide. Member states should identify regulated entities, issue greenhouse gas emission permits to them in 2024, and start the system of monitoring and reporting of emissions in 2025 to prepare for the issuance of allowances in 2027. Finally, to address the social impacts that arise from the extension of emissions trading to buildings and road transport, the EU will establish a new Social Climate Fund. The SCF will provide dedicated financial support to member states to help vulnerable households, micro-enterprises, and transport users that are particularly affected by the price impacts of ETS2, especially citizens in energy or transport poverty. In order to access the funding as of 2026, each member state should submit a Social Climate Plan (SCP) to the European Commission by June 2025.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article was published on 10 March 2026, making it current and original. No evidence of prior publication or recycling was found. The content is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified.
Quotes check
Score:
10
Notes:
The article does not contain direct quotes. All information is paraphrased from the press release, which is acceptable for this context.
Source reliability
Score:
10
Notes:
The source is Solar Heat Europe’s official website, a reputable organisation within the industry. The content is original and not derived from other publications. No signs of fabrication or derivative content were found.
Plausibility check
Score:
10
Notes:
The claims made in the article align with known facts about the EU’s Emissions Trading System (ETS2) and the role of Solar Heat Europe. No implausible or unsupported claims were identified.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The article is a current, original news report based on a press release from Solar Heat Europe. It is free from significant issues related to freshness, quotes, source reliability, plausibility, paywall, content type, and verification independence. No concerns were identified that would affect its credibility.
