Household solid fuel burning remains one of the most problematic drivers of CO₂ and PM2.5 emissions in the EU. The households most dependent on polluting heating systems are also those least equipped to make the switch. The introduction of the EU Emissions Trading System 2 (ETS2) places a carbon price on fossil fuels used in buildings and transport but would risk deepening energy poverty unless matched by well-targeted public investment. The Social Climate Fund, implemented through national Social Climate Plans (NSCPs), will play a key role in shielding vulnerable households from rising costs. 

This latest report from BPIE report analyses how to switch to clean and renewable heating in buildings occupied by vulnerable households by examining: 

• the capital investment needs and benefits of such a transition
• whether the transition is adequately supported by NSCPs
• best practices for financial support
• recommendations for more effective use of NSCPs and ETS2 revenues. 

By focusing on five countries – Bulgaria, Germany, Italy, Poland and Romania – the project informs on policy and funding decisions that can accelerate clean and fair heating transitions across Europe. Most countries covered by the study require significant capital investments (of around 200 EUR/m²) to deliver clean and renewable heat. To ensure a reduction in energy bills, a comprehensive approach which includes renovation and the deployment of clean heat technology is required.

Deploying optimal energy efficiency packages could lead to reductions of various degrees in delivered energy, air pollution, running costs, and greenhouse gas emissions across the five Member States that were analysed. National policies such as the NSCPs offer an opportunity to address the problems faced by vulnerable households in a granular way by offering financial support, mobilising ETS2 revenues and allocating resources towards establishing one-stop-shops for energy efficiency.