The new EU Emissions Trading System 2 (ETS 2) will enter into force in 2027 and expand carbon pricing to include fuels used in buildings and transport. For the HVAC and plumbing sector, this landmark policy creates a new price signal that can accelerate the shift to clean and efficient heating.
What is ETS 2 and why does it matter?
Unlike the existing ETS (which covered large industrial emitters and power generation), ETS 2 applies to fuel suppliers serving households and businesses. This includes oil and gas heating — meaning that carbon costs will now impact final consumers directly.
How this affects the HVAC and plumbing sector:
- Fossil-based heating fuels will become more expensive, making clean heating options more attractive
- Households, building owners and local authorities will look for cost-effective, future-proof alternatives
- Installers will need to advise on the carbon cost of systems, alongside energy efficiency and reliability
- Training and adaptation are crucial — particularly for SMEs and independent installers
What support is available?
The EU Social Climate Fund, launched in parallel with ETS 2, is designed to support vulnerable households and businesses in making the transition. This fund can finance energy efficiency upgrades, cleaner heating systems, and even training programs for installers — if properly implemented at national level.
GCP Europe’s position:
GCP Europe joined other industry associations in a joint statement calling on the EU to:
- Ensure clarity and visibility for fuel prices to drive change
- Strengthen support measures, especially for renovation and workforce development
- Engage the HVAC and plumbing sector in national implementation plans
Next steps:
- 2025–2026: Member States draft national roadmaps
- GCP Europe continues working with policymakers to ensure that ETS 2 becomes a lever for fair and efficient energy transition
Read our Joint Statement (PDF)
Read GCP Europe "Policy sheet" on that topic (Restricted to GCP Europe members)
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