The European Commission has published a new study to help EU Member States prepare for the launch of the EU Emissions Trading System for buildings, road transport, and small industry (ETS2), which will become fully operational in 2027. The study presents 21 real-world case studies from across the EU, showcasing cost-effective, scalable, and replicable measures that can accelerate early decarbonisation in these challenging sectors. 

Focusing on practical solutions, from energy-efficient building renovations to clean mobility initiatives, the study highlights policies that benefit low- and middle-income households, such as reduced VAT rates for electricity used in heat pumps or for purchasing clean-heating technologies. It also identifies three promising future measures to further support the transition. 

Developed as part of the 2023 revision of the EU ETS Directive, ETS2 will extend carbon pricing to sectors historically difficult to decarbonise. It aims to cut emissions by 42% by 2030 (compared to 2005 levels). Revenues from ETS2 will fund climate and social measures, including over €87 billion channelled through the Social Climate Fund to assist vulnerable households and micro-enterprises. This study provides timely guidance for Member States to ensure a fair, efficient, and socially balanced transition toward a low-carbon economy.