EU Plans EUR 3 billion Loan Facility to Support Heat Pump Uptake Before 2028 Carbon Pricing

EU Plans EUR 3 billion Loan Facility to Support Heat Pump Uptake Before 2028 Carbon Pricing

EU: The European Investment Bank is set to provide EUR 3 billion (USD 3.3 billion) in loans to EU member states to help households adopt heat pumps and improve home energy efficiency before the EU’s new carbon pricing system for buildings comes into effect in 2028. The measure is intended to support low- and middle-income households ahead of expected increases in gas heating costs once emissions permits are applied to the sector under the EU’s Emissions Trading System 2 (ETS2).

The loans will be available only to member states that have incorporated ETS2 into national legislation. Countries will be able to use the funds immediately to pre-finance heat pump subsidies and home renovation schemes, and will repay the EIB later using revenue generated once ETS2 begins in 2028. The initiative follows calls from Members of the European Parliament to ensure households have access to alternatives before carbon-related price increases are introduced.

Source: EU Perspective