A study of supporting measures promoting decarbonisation in the sectors covered by ETS2 :
Date: 2025-09-12
Institutions: Directorate-General for Climate Action
Subjects: Community certification, EU budget, EU environmental policy, EU financing, EU programme, adaptation to climate change, carbon capture and storage, carbon neutrality, private investment, research and development

A STUDY OF SUPPORTING 
MEASURES PROMOTING 
DECARBONISATION IN THE 
SECTORS COVERED BY ETS2 

Written by Ricardo 
September 2025 

 
 
EUROPEAN COMMISSION 

Directorate-General for Climate Action 
Directorate B — Carbon Markets and Clean Mobility 
Unit B.1 — ETS (I): Policy Coordination, International Carbon Markets 

Contact:  Philippe CALUWAERTS 

E-mail:   Philippe.CALUWAERTS@ec.europa.eu  

European Commission 
B-1049 Brussels 

 
 
Manuscript completed in September 2025 

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A STUDY OF SUPPORTING 
MEASURES PROMOTING 
DECARBONISATION IN THE 
SECTORS COVERED BY ETS2

Report for: DG CLIMA 

Ref. CLIMA/A4/FWC/2023/0002/RICARDO 

Issue: 1 

04/09/2025 

A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

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A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

EXECUTIVE SUMMARY 

In 2027, the EU Emissions Trading System 2 (ETS2) will become fully operational. ETS2 is a new, separate 
EU  ETS  to  cover  sectors  where  progress  on  decarbonisation  has  historically  been  limited,  namely  road 
transport, buildings, and additional sectors (mainly industry not covered by ETS1). 

ETS2 is not an isolated policy but part of a broader policy mix of national and EU-wide measures designed to 
accelerate  decarbonisation  and  support  the  EU’s  climate  targets:  a  55%  reduction  in  greenhouse  gas 
emissions by 2030 compared to 1990 levels, and climate neutrality by 2050. In the sectors covered by ETS2, 
the  EU  has  already  enacted  key  complementary  legislation,  including  the  Alternative  Fuels  Infrastructure 
Regulation  (AFIR),  the  CO2 emission  performance  standards  for  new  passenger  cars  and  for  new  light 
commercial vehicles, the Energy Efficiency Directive (EED), and the Energy Performance of Buildings Directive 
(EPBD).  These  initiatives  share  a  common  approach:  the  use  of  legally  binding  targets,  mandatory 
performance requirements, and enhanced transparency and communication for end users. The Commission’s 
impact assessment showed, however, that reliance on strengthened regulatory policies alone would not be 
sufficient  to  achieve  the  targets  and  would  lead  to  higher  burdens  on  households  and  more  significant 
investment  challenges.  ETS2  is  therefore  embedded  in  this  policy  mix  to  ensure  the  most  cost-effective 
approach.  

While  these  regulatory  policies  promote  climate  action,  the  EU  recognises  the  challenges  that  extending 
carbon pricing to new sectors may bring for the most vulnerable groups, including households vulnerable to 
energy poverty, micro-enterprises and vulnerable transport users. To mitigate these impacts and ensure a just 
and  equitable  transition,  the  EU  has  established  the  Social  Climate  Fund  (SCF),  which  will  be  primarily 
financed through revenues from ETS2. The SCF will provide Member States with financial support, subject to 
specific conditions, to implement targeted national measures that support both climate objectives and social 
equity. In addition, Member States will be required to use all remaining national ETS2 revenues for climate 
action and social measures, and they will report on how these funds are utilised.  

By showcasing  best practice measures implemented across the Union, this study aims to support Member 
States  in  designing  and  implementing  effective,  complementary  measures  that  address  key  barriers  and 
promote decarbonisation in the initial years of the ETS2. The proposed measures have been selected based 
on their cost-effectiveness, replicability, scalability, and potential for high short-term impact, through a rigorous, 
multi-step  approach  which  included:  identifying  barriers,  mapping  relevant  countermeasures,  collecting 
qualitative and quantitative data on potential best practices, evaluating measures through a rating framework, 
and consulting with sectoral experts. The table below illustrates the full list of twenty-one measures that were 
identified through this work. 

Table 0-1 Full list of supporting measures 

Name of the supporting measure 

Category/type of measure 

Road transport 

Emission based taxes and tolls (bonus-malus). Tax advantaged for ZEV 
and malus for ICEV 

Financing - Tax incentives 

Reduced and simplified ticket pricing for public transport    

Regulation & standards 

On-demand transport 

CO2 based tax deductibility for company cars 

Price transparency for public charging 

Regulation & standards 

Financing - Tax incentives 

Regulation & standards 

Urban transport planning towards modal shift - Superblock model 

Regulation & standards 

Financial  incentives  for  grid  connection  of  charging  infrastructure  for 
heavy-duty vehicles, including grid connection 

Financing - grants/subsidies 

Streamlining  and  harmonising  administrative  processes 
connections 

for  grid 

Regulation & standards 

 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

Name of the supporting measure 

Category/type of measure 

Eurovignette – Truck tolling in favour of ZE HDVs. 

Financing – tolling mechanism 

Buildings 

Acting  to  reduce  electricity  prices  for  specific  technologies  (e.g.  heat 
pumps) 

Regulation & standards, 
Financing - Tax incentives 

On-bill-financing 

Information about heat pumps and tools 

Financing - Soft loans/loans 

Awareness, technical support 
and training  

State guaranteed and interest-free loans for energy efficiency measures 

Financing - Soft loans/loans 

Energy efficiency information programmes and tools 

Subsidies for building renovation 

Awareness, technical support 
and training 

Financing - grants/subsidies, 
Financing - Soft loans/loans 

Tax deductions for energy efficiency renovations and renewable heating 
systems / VAT reductions 

Financing - Tax incentives 

Industry 

Financing schemes supporting energy efficiency investment 

Voluntary Energy Efficiency Agreements 

Energy audits 

Provision of external support 

Financing - 
grants/subsidies/Soft 
loans/loans 

Voluntary agreements, 
Financing - grants/subsidies 

Awareness, technical support 
and training 

Awareness, technical support 
and training 

National Investment Funds supporting R&I and demonstration projects 

Financing - grants/subsidies 

In the road transport sector, most selected measures aim to address concerns around charging infrastructure 
and the relatively high costs of low-emission vehicles compared to conventional options. As such, the policy 
mix includes both economic instruments (such as incentive schemes) and regulatory tools (such as standards 
and  requirements).  These  policies  are  necessary  to  promote  the  electrification  of  road  transport,  which  is 
responsible  for  around  three  quarters  of  all  transport-related  emissions.  Additionally,  three  out  of  eight 
measures target modal shift in the shorter term, promoting a transition from a car-centric model to more diverse 
and  sustainable  mobility  options,  including  cycling,  public  transport,  and  rail.  Further  modal  shift  initiatives, 
such as the expansion or redesign of public transport networks and intermodal hubs, or the development of 
rail and shared transport infrastructure, should be considered in long-term planning, as they are essential for 
the sector’s full decarbonisation. 

In the buildings sector, selected measures primarily address two key barriers: high upfront costs and limited 
consumer awareness. These are tackled through a combination of economic incentives and information-based 
instruments, both aimed at enhancing energy efficiency. 

For  the  industry  sector,  the  proposed  measures  combine  financial  and  technical  support  with  training  and 
capacity-building initiatives, together addressing some of the main challenges faced by smaller firms in the 
decarbonisation process. In addition, support for innovation is included, targeting both quasi-mature solutions 
and the early-stage development of emerging technologies. 

 
 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

Alongside these twenty-one measures, three options with significant future potential have been identified, of 
which  two  in  the  buildings  sector  and  one  in  the  road  transport  sector.  The  first  aims  to  incentivise  both 
landlords  and  tenants  to  pursue  energy  savings  by  improving  building  energy  performance  and  promoting 
more  sustainable  behaviours.  The  second  explores  the  introduction  of  leasing  contracts  for  heat  pumps, 
removing the initial investment burden for end users and enabling governments to subsidise uptake by lowering 
end-user costs for households and businesses. The third focuses on a local example of how an investment in 
urban  cycling  infrastructure  could  incentivise  modal  shift  and  contribute  significantly  to  the  decarbonisation 
efforts. 

While  not  exhaustive,  the  list  represents  a  diverse  and  balanced  set  of  policy  instruments  that  are  cost-
effective,  scalable,  and  aligned  with  EU  climate  goals.  The  selected  measures  demonstrate  how  Member 
States can make effective  use of their resources to  deliver targeted  decarbonisation outcomes  in the early 
years  of  ETS2  implementation,  with  attention  to  lower  income  and  middle  income  groups  affected  by  the 
transition. Member States are encouraged to build on these examples, integrate them into coherent national 
strategies,  and  ensure  continuity  through  long-term  planning.  Policy  stability  will  be  essential  to  enable 
households, local community groups, local authorities and businesses to plan with confidence, make informed 
decisions, and invest in the adoption of low-carbon technologies. This approach will be critical to delivering on 
objectives of climate ambition and just transition at the heart of the European Green Deal. 

 
 
 
 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

CONTENTS 

2.  DEVELOPED BEST PRACTICES 

EXECUTIVE SUMMARY 
1.  INTRODUCTION TO THE STUDY 

grid connection 

2.3  BUILDINGS 

redistribution of public spaces 

2.2  ROAD TRANSPORT 

advantages for ZEV and malus for ICEV 

2.2.1  Case  Study:  Emission-based  acquisition  and  registration 

2.1.1  Case Study example structure 
2.1.2  Summary of developed case studies 

1.1  POLICY CONTEXT 
1.2  OBJECTIVES 
1.3  REPORT STRUCTURE 
1.4  METHODOLOGY 

3 
3 
3 
4 
5 
5 
7 
7 
8 
10 
taxes  (bonus-malus).  Tax 
10 
12 
2.2.2  Case Study: Reduced and simplified ticket pricing for public transport 
15 
2.2.3  Case Study: On-demand transport 
18 
2.2.4  Case Study: CO2-based tax deductibility for company cars 
2.2.5  Case Study: Price transparency for public charging 
20 
2.2.6  Case  Study:  Urban  transport  planning  towards  modal  shift  -  Superblock  model  for 
21 
2.2.7  Case Study: Financial incentives for charging infrastructure for heavy-duty vehicles, including 
25 
2.2.8  Case Study: Streamlining and harmonising administrative processes for grid connections  27 
29 
2.2.9  Case Study: Eurovignette – Truck tolling in favour of ZE Heavy Duty Vehicles (HDVs). 
31 
2.3.1  Case Study: Acting to reduce electricity prices for specific technologies (e.g. heat pumps)  31 
34 
2.3.2  Case Study: On-bill financing 
37 
2.3.3  Case Study: Information about heat pumps and tools 
41 
2.3.4  Case Study: State guaranteed and interest-free loans for energy efficiency measures 
43 
2.3.5  Case Study: Energy efficiency information programmes & tools 
2.3.6  Case Study: Financing support for building renovation 
45 
2.3.7  Case Study: Tax deductions for energy efficiency renovations and renewable heating systems 
49 
52 
52 
2.4.1  Case Study: Financing schemes supporting energy efficiency investments 
54 
2.4.2  Case Study: Voluntary energy efficiency agreements 
57 
2.4.3  Case Study: Energy audits 
2.4.4  Case Study: Provision of external support 
59 
2.4.5  Case  Study:  National  investment  funds  supporting  research  and  innovation  (R&I)  and 
61 
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66 
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68 
76 
77 
77 
77 

3.1.1  Leasing of heat pumps 
3.1.2  Carbon Dioxide Sharing Act 
3.1.3  Cycling infrastructure development in Bordeaux and target setting 

4.1  IDENTIFICATION OF CHALLENGES AND BARRIERS 
4.2  IDENTIFICATION OF SUPPORTING MEASURES 
4.3  ADDITIONAL DETAILS ON THE MEASURES INCLUDED IN THE LONG LIST. 
4.4  ASSESSMENT OF THE PRIORITISED MEASURES 

4.4.1  Ranking of the long list of measures 

2.4  INDUSTRY 

/ VAT deductions 

demonstration projects 
3.  HIGH POTENTIAL MEASURES FOR THE FUTURE 

4.  ANNEX 1- DETAILED METHODOLOGICAL APPROACH 

Ricardo 

 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

4.4.2  Key stakeholder webinars 

4.5  CASE STUDY DEVELOPMENT 
5.  ANNEX 2 – LONG LIST OF MEASURES 
6.  ANNEX 3 – SUMMARY TABLES FOR MEASURES IN THE LONG LIST 

6.1  TRANSPORT - FREIGHT TRANSPORT 
6.2  TRANSPORT - PERSONAL TRANSPORT/MODAL SHIFT 
6.3  BUILDINGS - RENEWABLE-BASED & RENEWABLE-READY HEATING TECHNOLOGIES 
6.4  BUILDINGS – ENERGY DEMAND 
6.5  INDUSTRY – WILLINGNESS 
6.6  INDUSTRY – FEASIBILITY 
6.7  INDUSTRY – REGULATION 

78 
80 
80 
85 
85 
100 
115 
130 
146 
155 
169 

Ricardo 

 
 
 
 
 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

1.  INTRODUCTION TO THE STUDY  

This progress report has been prepared by Ricardo and Oeko-Institut as part of the project “Service contract 
for ETS2 implementation and analysis”, specific contract No 300100017, implementing framework contract No 
CLIMA/A4/FWC/2023/0002/RICARDO.  The  report  has  been  prepared  for  the  Directorate  General  (DG) 
Climate Action of the European Commission. 

1.1  POLICY CONTEXT 

The ETS2 was introduced as part of the 2023 revision of the EU ETS Directive, establishing a distinct carbon 
market to cover CO
 emissions from fuel combustion in sectors previously outside the scope of the original 
ETS1 – specifically, buildings, road transport, and additional sectors (mainly industry not covered by ETS1). 
These sectors have been selected because the progress in their decarbonisation has not aligned historically 
with the EU’s decarbonisation goals.1 To ensure administrative simplicity, compliance obligations under ETS2 
will  fall  on  upstream  fuel  suppliers,  who  will  be  responsible  for  monitoring,  reporting,  and  surrendering 
allowances for the emissions associated with the fuels they place on the market. 

₂

The ETS2 will become fully operational in 2027, with an annually declining emissions cap designed to align 
with  the  EU’s  2030  climate  targets  and  eventual  climate  neutrality  by  2050.  As  the  carbon  cost  will  be 
embedded  in  fuel  prices,  the  financial  burden  will  be  passed  on  to  final  consumers  –  households,  drivers, 
businesses, and public services – altering price signals and incentivising lower carbon choices. However, these 
price increases risk exacerbating existing inequalities if no complementary policies or options for consumers 
are put in place. 

To mitigate these impacts and provide opportunities to citizens, the EU established the Social Climate Fund 
(SCF)2. The SCF aims to ensure that the transition to climate neutrality is fair and socially inclusive. It will be 
financed primarily from ETS2 auction revenues, supplemented by the auctioning of 50 million allowances from 
the  existing  ETS1.  Member  States  are  required  to  co-finance  25%  of  the  measures  funded  by  the  SCF, 
leveraging total resources of up to EUR 86.7 billion for the period 2026–2032. 

To  access  SCF  funding,  Member  States  must  prepare  Social  Climate  Plans,  which  outline  the  specific 
measures they intend to implement, such as direct income support (limited in size and time), energy efficiency 
investments in housing, or access to zero- and low-emission mobility options. These plans must be developed 
in  consultation  with  stakeholders  across  civil  society,  local  authorities,  and  economic  actors,  and  must 
demonstrate  how  the  proposed  actions  will  benefit  the  most  vulnerable  populations.  The  Commission  will 
assess and approve these plans based on how effectively they target the social impact of ETS2 on vulnerable 
households, vulnerable micro-enterprises and vulnerable transport users, cost-effectiveness, and alignment 
with broader climate goals. In addition, Member States will be required to use all national ETS2 revenues for 
climate action and social measures and will report on how this money is spent. This can include measures to 
contribute to the decarbonisation of heating and cooling of buildings or to the reduction of the energy needs of 
buildings, including the integration of renewable energies, measures to accelerate the uptake of zero-emission 
vehicles  or  to  provide  financial  support  for  the  deployment  of  fully  interoperable  refuelling  and  recharging 
infrastructure  for  zero-emission  vehicles,  measures  to  encourage  a  shift  to  public  transport  and  improve 
multimodality, as well as measures to provide financial support for low-income households in worst-performing 
buildings and for low- and middle-income transport users. 

Furthermore, ETS2 will build upon and be embedded in an existing set of EU-wide and national measures 
aimed at increasing energy efficiency and improving infrastructure in ETS2-related sectors. For instance, at 
EU-level the Alternative Fuels Infrastructure Regulation (AFIR) sets specific objectives to support the uptake 
of  alternative  fuel  vehicles  across  all  transport  modes  and  all  Member  States.  The  development  plan  is 
designed to ensure the interoperability of infrastructure. Moreover, AFIR aims to enhance transparency and 
clear  communication  of  data,  ensuring  easier  access  for  consumers  to  relevant  prices  and  information. 
  emission  performance  standards  for  new  passenger  cars  and  new  light  commercial 
Furthermore,  the  CO

₂

1 EUR-Lex - 52021PC0551 - EN - EUR-Lex 
2 Social Climate Fund - European Commission 

3 

 
 
 
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vehicles require manufacturers to improve current technologies and innovate in zero-emission technologies in 
order to meet progressively more stringent performance targets.3 

The Energy Efficiency Directive4 sets binding  targets for energy efficiency, to  ensure the achievement of  a 
55%  reduction  in  GHG  emissions  compared  to  1990  levels.  EU  Member  States  are  required  to  achieve 
cumulative  end-use  energy  savings,  with  increased  emphasis  on  alleviating  energy  poverty,  for  example, 
through instruments such as the Social Climate Fund (SCF). To support energy savings in the buildings sector, 
which accounts for 40% of total energy consumption in the EU, the Energy Performance of Buildings Directive 
(EPBD) was enacted.5 The EPBD aims to increase the renovation rate across the EU, targeting the worst-
performing  buildings  in  each  country  through  the  introduction  of  binding  targets  and  minimum  energy 
performance standards. 

Overall,  the  ETS2,  the  Social  Climate  Fund,  and  other  relevant  EU  and  national  policies  represent  a 
comprehensive approach. Carbon pricing will incentivise emissions reductions in sectors previously untouched 
by  the  ETS1.  The  Social  Climate  Fund  will  focus  on  mitigating  the  social  impacts  of  the  transition  through 
targeted support measures, particularly for households with lower income. Finally, the broader set of EU and 
national  policies  and  regulations  will  contribute  to  delivering  emission  reductions,  by  setting  clear  binding 
targets  and  promoting  improvements  in  specific  and  critical  areas,  while  also  providing  increased  policy 
stability.  

1.2  OBJECTIVES 

The overall aim of this study is to identify a list of existing best practice measures, policies and investments 
available at the national level for EU Member  States (MSs) to support rapid decarbonisation in the sectors 
covered by ETS2, namely: road transport, buildings, and a range of industries not included in the ETS1. The 
concept of support measures refers to complementary measures that can ensure or increase the effectiveness 
of other policies. The measures identified in this study focus on addressing specific challenges and barriers to 
decarbonisation in the ETS2 sectors. Particular attention is given to measures that are scalable, replicable 
across other EU Member States, likely to generate immediate, short-term impacts, and are sufficiently cost-
effective. The measures in this study should be seen as contributing to the efforts under the SCF, Member 
States’  use  of  ETS2  revenues  and  other  EU  and  national  policies  and  regulations  aimed  at  mitigating  the 
distributional and social impacts of the energy transition. Notably, the selected measures go beyond the scope 
of the Social Climate Fund, as they also support middle income households by promoting energy efficiency 
renovations, the uptake of electric vehicles, and other initiatives that facilitate a broader transition. 

The scalability of a measure refers to its ability to cover a significant share of emissions within a sector and its 
potential  to  be  extended  to  other  stakeholders  and  ETS2  sectors.  Replicability  is  crucial,  as  best  practices 
must be implementable across different Member States to accelerate decarbonisation by building on existing 
experience and knowledge. In addition, cost-effectiveness is a key attribute of the selected measures, as the 
transition  will  demand substantial resources, which  must be allocated  and utilised in the most  efficient and 
impactful manner possible. 

In principle, the emphasis of this study is on ready-to-use measures which can be implemented in the short-
term and generate immediate benefits for people and businesses. This is intended to support energy efficiency 
and  decarbonisation  during  the  initial  years  of  ETS2,  making  good  use  of  ETS2  revenues  and  easing  the 
transition for consumers and businesses to meet the 42% GHG emission reduction needed for 2030. However, 
this study also acknowledges that there is a broad range of measures which are essential cornerstones for 
Member  States’  decarbonisation  strategies  that  can  be  initiated  in  the  short-term  but  may  take  longer  to 
generate their full impact for people and businesses. This includes measures such as redesigning or expanding 
public transport networks and hubs, the development of modal shift and rail transport infrastructure, or other 
public transport services. This study investigates a number of such measures, including fair ticket pricing for 
public transport and urban planning measures to reduce traffic and pave the way for a modal shift away from 
cars. Finally, the study also highlights measures that show a good future potential, such as the Carbon Dioxide 
Act in Germany to combat split incentives between tenants and landlords, leasing of heat pumps and cycling 
infrastructure as a means to promote modal shift in chapter 3. These types of measures in general are dealt 

3 EUR-Lex - 02019R0631-20250101 - EN - EUR-Lex 
4 Directive - 2023/1791 - EN - EUR-Lex 
5 Directive - EU - 2024/1275 - EN - EUR-Lex 

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with  more  broadly  in  the  guidance  on  good  practices  already  published  by  the  Commission  as  part  of  the 
support provided to Member States for their Social Climate Plans.6 As such, this study complements the other 
guidance and support published by the Commission.  

Each  sector  covered  by  ETS2  has  its  own  distinguishing  factors  and  unique  challenges  when  it  comes  to 
decarbonisation. In the buildings sector, 30% of the sector is already covered by carbon pricing (notably electric 
heating, electricity for heat pumps and district heating are covered under ETS1), while ETS2 will directly affect 
the cost of the remaining share of heating fuels (for example home gas boilers, which are not covered under 
ETS1),  leading  to  a  level  playing  field  for  various  heating  systems,  and  catalysing  investment  in  cleaner 
technologies and energy renovations for which payback time will be reduced. In the transport sector, ETS2 will 
similarly influence vehicle owners by increasing operating costs associated with ownership of diesel and petrol 
cars.  As  a  result,  ETS2  will  increase  the  attractiveness  of  electric  vehicles  and  car  usership  schemes, 
incentivising their uptake, as well as the uptake of and investment public transport, modal shifts or transport 
on demand. 

1.3  REPORT STRUCTURE 

The content of this report is organised into three main sections. 

Section 1 introduces the study, its objectives and the policy context, also providing a brief overview of the 
methodological  approach  that  was  used  to  identify  both  barriers  and  measures,  for  each  ETS2  sectors. 
Moreover, Section 1 outlines the process that resulted in the selection of best practices. 

Section 2 provides a brief introduction to the case study structure and content, along with a summary of the 
twenty-one  case  studies  developed.  This  includes  key  information  such  as  the  challenges  addressed, 
geographical scope, and type of measure. 

•  Subsection 2.2 presents the nine case studies developed for the road transport sector. 
•  Subsection 2.3 includes the seven case studies developed for the buildings sector. 
•  Subsection 2.4 covers the five case studies developed for the small industry sector. 

A consistent structure is applied across all case studies, regardless of sector. 

Section 3 introduces a selection of high-potential measures for the future – these are not classified as best 
practices  within  the  scope  of  this  study  but  demonstrate  potential  for  future  application.  Three  of  these 
measures are presented in Subsections 3.1.1, 3.1.2 and 3.1.3. 

The report is complemented by three annexes: 

•  Annex 1 provides an expanded description of the methodological approach outlined  in Subsection 
1.2. It includes details on how challenges and barriers were identified, how supporting measures were 
selected, and assessed to identify key best practices. 

•  Annex  2  presents  a  comprehensive  list  of  all  measures  identified  during  the  project,  grouped  by 

subsector. 

•  Annex 3 presents 68 tables, each providing summary information on a measure from the long list. 

1.4  METHODOLOGY  

This subsection provides a brief overview of the process taken culminating in the final development of 21 best 
practice measures to decarbonise ETS2 sectors. A five-step approach was taken as described below. More 
detail is included in Annex 1 of this report.  

•  Step 1: Identification of barriers and challenges in each sector/investment environment using systems 

dynamics maps. 

•  Step 2: Identification of supporting measures to address the barriers and challenges from cross-EU 

desk-based sources, which formed the initial long list of measures. 

•  Step 3: Collection of additional details on the measures included in the long list.  
•  Step 4: Assessment of the prioritised measures for best practices. 

6 https://op.europa.eu/en/publication-detail/-/publication/af68b4c7-3508-11ef-b441-01aa75ed71a1/language-en 

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•  Step 5: Development of best practice support measures case studies. 

Figure 1-1 Methodological steps towards development of best practices 

•  Step 1: The aim of step 1 was to collect a large list of barriers and challenges to the decarbonisation 
of  the  sectors  covered  by  ETS2,  namely  road  transport,  buildings  and  small  industry.  Barriers  and 
challenges  were  found  for  each  sector.  Through  desk-based  research  82  barriers/challenges  were 
identified  and  included  in  the  long  list  (although  some  are  repeated  across  subsectors)  and  later 
discussed with internal sector experts from Ricardo and Oeko-Institut. Based on the research carried 
out, 31 barriers/challenges were selected from the 82 initially identified. 

•  Step  2:  The  aim  of  step  2  was  to  identify  supporting  measures  to  reduce  the  impact  of  prioritised 
challenges/barriers.  The  measures  were  collected  through  desk-based  research  sources.  The  aim 
was to collect up to 2 measures per barrier. In total 66 measures were found; however, some were 
repeated  as  they  are  applicable  across  different  subsectors/sectors  and  other  cases  highlighted  a 
different national variation of the same measure (e.g. subsidies/grants for EV purchases with three 
MS examples). The Odyssee-Mure database was used to identify measures that potentially qualify as 
best practices. 

•  Step 3: The aim of step 3 was to collect additional details (from diverse sources) on the measures 
collected in Step 2. The information collected was later used in Step 4 to compare the measures across 
a range of criteria and consequently refine the list of measures through a ranking process to a final list 
of  21.  The  information  collected  included,  affected  stakeholders,  expected  impacts  and  details 
affecting implementation and delivery. The list of measures was also sent to the respective Member 
States that they were associated with, to provide their views on the measures and provide additional 
information from up-to-date sources. 

•  Step 4: The 21 best practice measures were selected by ranking the long list of measures through a 
2-tier approach as well as 3 stakeholder webinars on the 6th of May 2025 (one for each sector). In the 
first round, measures that were mandated by the EU legislation and had no additional element to them 
from a national perspective were removed, as well as those with insufficient information to qualify them 
as best practices. In the second round, the measures were ranked according to the criteria in Table 
1-1 below. The top 10 measures for each sector were then taken forward and presented in 3 webinars 
on the 6th of May 2025 (one for each sector). Member State representatives, departments from the 
European  Commission  and  key  European  stakeholders  including  industry  associations  and  NGOs 
were invited to share their views on the ranked measures. More details on the webinar outcomes can 
be found in Annex 1. 

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Table 1-1 Key ranking criteria for selected measures 

Assessment Area 

Key indicators 

Synergies with other 
measures/policies 

Impact/effectiveness 

Scalability (including cost 
effectiveness) 

•  Positive synergies include relationships between policies where one or 
both measures show amplified positive effects due to the presence of the 
other policy. 

•  Extent  to  which  measure  may  contribute  to  addressing  needs  and 

barriers in the short-term 
•  Potential emissions savings 
•  Design of the policy, implementation infrastructure, evidence of impact 

(case study, public acceptance, statistics…) 

•  Can  the  policy  be  applied  to  numerous  stakeholders  and  across 

sectors/subsectors 

•  What is the social, public and private cost? 

Speed of implementation 

•  Can the measure be implemented in the short term  

Replicability (policy context of the 
Member States) 

Is the policy measure replicable in other MS 

• 
•  Dependency on other measures 
•  Cultural impact/ Geopolitical context/ public acceptance 

EU mandated measure 

• 

Is a measure already mandated under the EU 

Availability/ quality of information 

•  Quality of information available for best practice consideration 

Stakeholder input 

• 

Inputs  from  the  European  Commission,  Member  States  and  key 
stakeholders (interview and webinar) 

•  Step 5: In this step, 21 best practice support measures case studies were developed that could be 
used by Member States to support ETS2 implementation. More detail on the case study development 
is provided in Section 2. 

2.  DEVELOPED BEST PRACTICES 

This section of the report provides an  expansion of the case studies which have  been  developed into best 
practices.  Member  States  can  take  inspiration  from  these,  to  implement  similar  measures  themselves  to 
promote effective long-term decarbonisation in the ETS2 sectors, with short-term initial impact. 

Case studies were developed using information collected through each of the 5 steps highlighted above in 
Figure  1-1.  Desk  research  undertaken  in  Step  2  of  the  methodology  had  been  elaborated  with  arguments 
posed during a webinar with expert stakeholders on May 6th, 2025, as well as inputs and up to date sources 
provided directly from Member States which fed the ranking process under Step 4. 

The case studies follow the same structure for each measure presented, as follows: 

2.1.1  Case Study example structure 

Overview of the measure 

2.1.1.1  Objectives and scope of the measure: 

Category and type of measure, who is the target stakeholder for the measure? 

2.1.1.2  Geographic scope: 

Is the measure implemented in one MS or multiple, is there much variation to implementation?  

2.1.1.3  Rationale, intervention logic and addressed barriers 

What is the key barrier(s) addressed by the measure? Describe how the measure itself will function in 
order to achieve its objective. 

Impact of the measure 

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2.1.1.4  Expected impacts: 

Actual and potential costs (social and public), are other stakeholders affected by the measure outside 
of  the  target  recipients?  Benefits  (achieved  and  potential  emissions/energy  savings/other  targets 
associated with the measure). Interaction/synergies with other policies/ other potential complementary 
measures. 

2.1.1.5  Scalability: 

Extent to which the measure can be scaled up and affect a wider range of stakeholders in the same 
sector, and other sectors.  

2.1.1.6  Replicability: 

To what extent can the measure and impact be replicated in other Member States? In which (type of) 
Member States is the measure likely to have most impact? 

Practicalities around implementation of the measure 

2.1.1.7  Speed of implementation: 

Implementation speed, costs and other key points to consider. 

2.1.2  Summary of developed case studies 

In total 21 best practice case studies have been developed: 9 for Road transport, 7 for buildings and 5 for 
Industry,  with  3  high  potential  measures  for  the  future  included  under  Section  3.  A  list  of  the  measures 
developed in this report are highlighted in Table 2-1 below. 

Table 2-1 Summary table of developed best practices 

Challenge addressed 

Road Transport 

Name of the supporting 
measure 

Geographical 
scope 

Category/type of 
measure 

Personal transport/modal shift 

High up-front costs of ZEVs 

High cost of public transport 

Lack of incentives for modal 
shift away from cars 

Support 
for  commercial 
entities  to  adopt  EVs  for 
their fleets 

Emission  based  taxes  and 
(bonus-malus).  Tax 
tolls 
advantaged 
for  ZEV  and 
malus for ICEV 

FR,  NL,  AT,  DEN, 
SE, BE, NO 

Financing 
incentives 

- 

Tax 

and 

Reduced 
ticket  pricing 
transport    

simplified 
for  public 

NL, AT 

Regulation & standards 

On-demand transport 

BE, ES, DE, NL 

Regulation & standards 

CO2 based Tax deductibility 
for company cars 

BE 

Financing 
incentives 

- 

Tax 

Access to affordable public 
charging infrastructure 

Price transparency for public 
charging 

EU, DE 

Regulation & standards 

Lack of incentives for modal 
shift away from cars 

Freight Transport 

Urban 
towards  modal 
Superblock model 

transport  planning 
- 

shift 

ES, AT, DE 

Regulation & standards 

Financial  incentives  for  grid 
connection 
charging 
of 
infrastructure for  heavy-duty 

DE, ES, FR IT 

Financing 
grants/subsidies 

- 

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Challenge addressed 

Name of the supporting 
measure 
vehicles, 
connection 

including 

grid 

Geographical 
scope 

Category/type of 
measure 

Concerns  over  charging 
grid 
infrastructure 
connection (including costs) 

and 

and 
Streamlining 
harmonising  administrative 
processes 
grid 
connections 

for 

NL, UK 

Regulation & standards 

High comparative operating 
cost of ZEV options 

Eurovignette  –  Truck  tolling 
in favour of ZE HDVs. 

DE 

Financing 
mechanism 

– 

tolling 

Buildings 

Renewable-Based & Renewable-Ready heating technologies 

Private  value 
(long payback periods) 

for  money 

Acting  to  reduce  electricity 
specific 
prices 
for 
heat 
technologies 
pumps) 

(e.g. 

DE,  BE,  GR,  IE, 
LU, CR, MT, ES 

Regulation & standards, 
Financing 
Tax 
incentives 

- 

Reputation and information 

Information 
pumps and tools 

about 

heat 

FI, NL 

Awareness, 
support and training  

technical 

Energy Demand 

Private  value 
(Long payback periods) 

for  money 

Private  value 
(Long payback periods) 

for  money 

High age of building owners 

Reputation and information 

On-bill-financing 

FR, IT, NL 

Financing 
loans/loans 

- 

Soft 

State 
and 
guaranteed 
interest-free loans for energy 
efficiency measures 

Energy 
efficiency 
information programmes and 
tools 

Brussels - BE 

Financing 
loans/loans 

- 

Soft 

LV, CZ, SI, FR, DE 

Awareness, 
support and training 

technical 

Renewable-Based & Renewable-Ready heating technologies & Energy Demand 

Subsidies 
renovation 

for 

building 

EE, AT, FR, DE, SI 

Tax  deductions  for  energy 
efficiency  renovations  and 
renewable heating systems / 
VAT reductions 

AT,  BE,  BG,  CY, 
CZ, DE, EE, EL, FI, 
FR, IE, IT, LT, LU, 
LV,  NL,  PL,  PT, 
RO, SI 

Financing 
grants/subsidies, 
Financing 
loans/loans 

- 

- 

Soft 

Financing 
incentives 

- 

Tax 

Private  value 
(high up-front costs) 

for  money 

Industry 

Willingness 

Insufficient  incentives  and 
costly period of downtime 

Policy and value-for-money 
uncertainty 

Financing 
schemes 
supporting  energy efficiency 
investments 

AT, FI, DE, HU, IT, 
LV, NL, PL ES 

Financing 
grants/subsidies/Soft 
loans/loans 

- 

Long payback periods 

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Challenge addressed 

Name of the supporting 
measure 

Geographical 
scope 

Category/type of 
measure 

Insufficient  incentives  and 
costly period of downtime 

Voluntary  Energy  Efficiency 
Agreements 

BE, FI 

Feasibility 

Lack  of  internal  skills  and 
awareness 

Energy audits 

AT, FI, IE 

Provision of external support  AT, CY, FI, IE, SE 

Voluntary  agreements, 
Financing 
- 
grants/subsidies 

Awareness, 
support and training 

technical 

Awareness, 
support and training 

technical 

Lack of technical readiness 
of alternative technologies 

National  Investment  Funds 
and 
supporting 
demonstration projects 

R&I 

FR, DE, IE, NL 

Financing 
grants/subsidies 

- 

2.2  ROAD TRANSPORT 

This  section  presents  the  9  best  practice  case  studies  developed  to  promote  decarbonisation  of  the  road 
transport sector. 

2.2.1  Case Study: Emission-based acquisition and registration taxes (bonus-malus). Tax advantages 

for ZEV and malus for ICEV 

Overview of the measure 

2.2.1.1  Objectives and scope of the measure 

  emissions  and  fuel 
These  tax  measures  aim  to  increase  the  acquisition  cost  of  ICEVs  with  high  CO
consumption, while reducing the financial burden for ZEVs through the introduction of CO
-based charges. 
These  measures  target  private  and  business  customers  purchasing  and  registering  new  vehicles.  A  CO2-
based  vehicle  registration  tax  can  be  combined  with  a  premium  for  zero-emission  vehicles  in  order  to 
implement a bonus-malus or 'feebates' system.  

₂

₂

2.2.1.2  Geographic scope 

Several  Member  States  have  implemented  CO2-based  registration  tax  or  levies  (e.g.  AU,  EE,  ES,  FI,  FR, 
NL7)8. The design of these measures varies in terms of the factors considered—often extending beyond CO2 
emissions  to  include  elements  such  as  vehicle  weight—as  well  as  in  the  level  of  charges  applied  and  the 
presence of emission thresholds that trigger significantly higher costs.  

The  Austrian  Normverbrauchsabgabe  (NoVA)  is  a  levy  that  must  be  paid  when  a  motor  vehicle  is  first 
registered  in  Austria.  This  consists  of  two  components,  both  of  which  are  calculated  based  on  the  CO2 
emissions of the vehicle (WLTP). On the one hand, this is a tax rate to be applied to the net price of the vehicle, 
which is higher depending on the emissions of the vehicle and amounts to a maximum tax rate of 80%. To 
calculate the tax rate, the vehicle’s CO
 emissions (WLTP) are first reduced by 94 g/km. The remaining amount 
is then divided by 5 to determine the percentage rate applied to the net price. For example, if a vehicle emits 
119 g/km, the difference to 94 is 25. Divided by 5, this results in a tax rate of 5%. In addition, there is a malus 
component for vehicles with emissions of over 155 gCO₂/km. For every gram above this value, there is a €80 
penalty.  For  vehicles  with  emissions  less  than  or  equal  to  96g/km,  no  NoVA  levy  is  payable.  If  these  two 
components result in a tax liability, an amount of €350 will be deducted from the calculated tax 910.  

₂

7 https://download.belastingdienst.nl/belastingdienst/docs/bpm_forms_bpm651z14fdeng.pdf  
8 https://erf.be/statistics/taxation-2024/  
9 https://onlinerechner.haude.at/BMF-NoVARechner 
10 https://www.volkswagen.at/nova  

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In  France11  and  Estonia12,  the  mass  of  the  vehicle  is  also  included  in  the  registration  tax  calculation.  For 
vehicles above a specific weight threshold, a larger tax must be paid.  

While the NoVA system does not include a bonus for ZEVs, other systems in the EU do, such as those in 
France and Sweden. France has the longest experience with a bonus-malus system, having established its 
program over 14 years ago. Bonus-malus systems balance the reduced revenue from low-emission vehicles 
with increased charges on high-emission ones, minimizing or improving fiscal impact on public budgets.  

2.2.1.3  Rationale, intervention logic and addressed barriers  

₂

A CO
-based vehicle registration tax influences costs in favour of low-emitting ICEVs and ZEVs, making them 
more economically attractive for private individuals and businesses alike. The goal is to incentivise efficient 
vehicles and to close the gap in the acquisition costs of ZEVs compared to ICEVs. Compared to simple funding 
schemes for ZEVs, the benefit is that no additional public funds are required to support their market uptake, 
which makes this measure sustainable and viable in the long term if it is reviewed and adjusted regularly. In 
order  to  ensure  social  fairness,  the  design  of  such  measures  should  take  into  account  their  distributional 
effects. For instance, France has adjusted its bonus scheme for ZEVs to provide greater incentives for low-
income households, thereby strengthening the progressive nature of the measure.  

Impact of the measure 

2.2.1.4  Expected impacts 

Experts consider this measure to be effective as it makes ZEVs more attractive and discourages the acquisition 
of  ICEVs,  effectively  steering  consumers  towards  electrification.  The  policy  can  be  gradually  intensified  by 
lowering the bonus-malus thresholds to further incentivise ZEV purchases or adjust the revenue. Initially, highly 
efficient  and  low-emission  ICEVs  compete  with  ZEVs,  as  has  been  observed  in  France  in  recent  years. 
However, this measure should be accompanied by the provision and funding of public and private charging 
infrastructure. Additionally, financial support for lower-income households is necessary to ensure the policy is 
socially equitable. Within a bonus-malus system, the registration tax can provide the revenue to incentivise the 
purchase of ZEVs when designed to be revenue neutral. 

The NoVA, introduced in 1991, was significantly tightened in 2020, with the maximum tax rate for 2024 being 
raised from 32% to 80%, the penalty amount being doubled from €40 to €80, and the penalty threshold being 
lowered from 275 to 155 g. For new registrations in 2025, emission savings of 669,000 tonnes of CO2 were 
estimated as a result of this adjustment to the NoVA within the useful life. The tax revenue from NoVA for new 
registrations, amounts to €100 million. This increase in tax revenue will be reduced by €23 million due to the 
induced reduction in fuel consumption – and thus mineral oil tax revenue – during the useful life.13 

2.2.1.5  Scalability 

The measure is scalable and can be expanded to cover different vehicle classes and properties (e.g. weight), 
depending  on  specific  requirements.  Since  these  are  typically  national  regulations,  they  have  broad 
applicability. However, it is advantageous if certain existing structures and prerequisites are already in place. 
In addition to the registration tax, CO2-based taxes or fees could be used for annual vehicle tax or tolling, which 
would further incentivise low-emitting vehicles and ZEVs.  

2.2.1.6  Replicability 

 component. The presence of a registration tax significantly facilitates the integration of a CO

The measure can be effectively transferred to other Member States, provided that existing tax are expanded 
to include a CO
component compared to establishing such taxes from scratch. Thresholds and charge levels must be adjusted 
₂
to  the  country’s  specific  circumstances  (e.g.,  ZEV  share,  average  CO2  emissions)  to  avoid  overburdening 
consumers or, if implemented as a bonus-malus-system, placing excessive financial strain on the state through 
bonus payments.  

₂

In countries with a high proportion of new registrations, the measure has particularly high potential.  

Practicalities around implementation of the measure 

11 https://www.transportenvironment.org/uploads/files/2024-02-taxes-for-heavier-_-larger-vehicles-SUVs_2024-10-07-151754_fjrq.pdf  
12 https://unicount.eu/en/estonian-car-tax-2025/  
13 https://oehw.at/wp-content/uploads/2023/12/oehw_21-033_eckerstorfer-riegler_nova-reform.pdf  

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2.2.1.7  Speed of implementation 

If a vehicle registration tax is already in place, the process should be relatively quick, as existing legal and 
administrative structures can be adapted. In such cases, implementation  may be possible  in  under a year. 
However, if no such tax exists, the process can take over a year due to the need for new legislation, institutional 
setup, and enforcement systems. Planning includes establishing financial frameworks and coordinating with 
relevant authorities, businesses, and monitoring bodies. 

2.2.2  Case Study: Reduced and simplified ticket pricing for public transport    

Overview of the measure 

2.2.2.1  Objectives and scope of the measure 

Given the growing importance of public transport in national agendas for reducing GHG emissions in line with 
European environmental objectives, the need has arisen to simplify and promote its use in various ways. This 
chapter presents two measures: the OV-chipkaart and Klimaticket Ö. 

The OV-chipkaart was first launched in Rotterdam in 2005 and later expanded across the country in 2010. It 
is a unified national fare system used by all major public transport operators on the Dutch mainland. Since 
mid-2022, the Netherlands has introduced OVpay, a system complementary to the OV-chipkaart, which allows 
users to check in to public transport using contactless debit or credit cards and mobile devices. 

The KlimaTicket Ö is a national public transport initiative launched in Austria in 2021. Its primary objective is 
to  promote  the  use  of  public  transportation  as  a  means  to  achieve  climate-related  goals,  particularly  the 
reduction of greenhouse gas emissions and air pollution. The measure simplifies access to public transport by 
offering a single subscription that covers all modes of public transportation across the country, including buses, 
trains,  and  subways.  This  initiative  targets  the  entire  population,  regardless  of  age,  with  special  pricing 
available for selected groups.14  

The promotion of public transport was also considered important due to the need to restore ridership following 
the decline in passenger volumes caused by the COVID-19 pandemic. 

The KlimaTicket Ö is part of a broader strategy that includes significant investments in the modernisation and 
expansion of public transport infrastructure including the improvement of local and regional transport services, 
ensuring that the increased demand generated by the KlimaTicket is met with adequate supply and quality of 
service.15  

2.2.2.2  Geographic scope 

The OV-chipkaart is implemented across the Netherlands. 

The KlimaTicket is implemented across Austria, encompassing both national and regional levels. While the 
national  KlimaTicket  Ö  provides  access  to  all  public  transport  services  throughout  the  country,  Austrian 
residents can also choose from seven regional KlimaTickets and six city-specific passes, depending on their 
travel needs.16 

Each of these options adheres to the same core principle: a single subscription that grants access to all public 
transport within the designated area, excluding services intended for tourism. The concept of a unified transport 
ticket in Austria dates to 2006, with Vienna introducing a first local version in 2012. The national rollout in 2021 
marked a significant expansion of this model.  

Similar initiatives have been adopted in other European countries. Germany introduced a €9 ticket which was 
valid  for  all  public  transportation  (except  long-distance  trains)  throughout  the  country  and  relied  heavily  on 
public funding. The 9-euro-ticket was later replaced by the €49 Deutschlandticket, which has similar coverage 
but is more financially sustainable.  

Luxembourg  has implemented free  public transport for both residents and tourists, while several  European 
cities have also adopted free public transport schemes. 

14 KlimaTicket 
15 Ibid14. 
16 Ibid14. 

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2.2.2.3  Rationale, intervention logic and addressed barriers  

The OV-chipkaart and OVpay simplify the way users access public transport by unifying both payment methods 
and the tracking of public transport usage. These systems also offer potential for expansion into other services. 
One example is OV-fiets (fully integrated with OV-chipkaart and OVpay), a nationwide bike-sharing system 
designed to encourage cycling, particularly for the “last mile” of journeys, i.e., from train or bus stations to the 
final destination. This system provides a convenient and relatively inexpensive way to travel, promoting the 
use of more sustainable modes  of  transport.  As of 2024,  there were  around  22,000 bikes available  at  282 
locations.17 

The KlimaTicket Ö addresses multiple barriers to public transport use by offering a comprehensive, affordable, 
and  user-friendly  solution.  By  setting  the  cost  at  approximately  three  euros  per  day  -  and  even  less  for 
discounted groups - the measure significantly lowers the financial barrier for both regular and occasional users. 
It also enhances convenience by integrating various modes of transport into a single ticket, thereby simplifying 
the user experience and making public transport a more attractive option.  

Importantly, the KlimaTicket Ö is not a standalone measure. It is supported by substantial public investment 
aimed at improving the quality and capacity of the transport network.18 This dual approach, which is based on 
stimulating demand while simultaneously enhancing supply, is crucial to the success of the initiative. Without 
corresponding improvements in infrastructure and service, increased demand could lead to overcrowding and 
a decline in service quality, as observed in Germany’s €9 ticket experiment. In that case, while car use declined 
only slightly, the affordability of public transport led to overcrowding and reduced user satisfaction. 19 Austria’s 
approach seeks to avoid these pitfalls by ensuring that service improvements accompany fare reductions. 

Impact of the measure 

2.2.2.4  Expected impacts 

There are currently no estimates for the emissions reduction associated with the potential behavioural changes 
resulting from the implementation of the unified payment system. However, some information on the OV-fiets 
is available. In 2024, 5.9 million rides were registered, up from 3.1 million rides in 2017 (although in 2017 only 
14,500 bikes were available).20 A study carried out an analysis of the OV-fiets program, focusing on financial, 
environmental, and health impacts. The results show that, in general, the program has benefited Dutch society, 
with benefit to cost ratios ranging from 1.1 in a pessimistic scenario, where the least favourable conditions are 
assumed, to 2.4 in an optimistic scenario. According to this research, the most important benefits are improved 
accessibility,  reduced  road  congestion,  and  health  benefits  due  to  increased  physical  activity.  At  the  same 
time, the methodology applied in this study may underestimate the environmental impacts of the programme, 
particularly regarding avoided emissions from modal shifts. This means that the overall environmental benefits 
are  likely  to  be  greater  than  reported.  Further  research  would  therefore  be  valuable  to  better  capture  and 
quantify  these  effects,  providing  a  more  complete  picture  of  the  contribution  of  such  schemes  to 
decarbonisation. 

As for costs, the government bears the majority, primarily due to investment costs (78 percent), along with 
reduced  tax  revenue  and  infrastructure  maintenance,  which  together  account  for  7  percent  of  total  costs. 
Society bears 10 percent of the costs through road safety impacts, while the remaining 5 percent is borne by 
operators in the form of operational losses.21 

The KlimaTicket Ö is expected to contribute significantly to the reduction of carbon emissions from the transport 
sector, which accounts for a disproportionately high share of Austria’s total emissions compared to the OECD 
average. 22  

The reduction in CO2 emissions is estimated in 65,000 tonnes of CO2e in 2021. In the first month following its 
launch, 130,000  KlimaTickets were sold.  By August  2023, this number  had risen to  250,000, meaning that 

17 NS Annual Report 2024 
18 KlimaTicket. 
19 Public transport pricing: An evaluation of the 9-Euro ticket and an alternative policy proposal - ScienceDirect 
20 NS Annual Report 2024 
21 Societal costs and benefits analysis of integrating bike-sharing systems with public transport: A case study of the public transport bike 
(‘OV-fiets’) in the Netherlands - ScienceDirect 
22 Austria’s “KlimaTicket” to promote low-carbon mobility | OECD 

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nearly 3% of the Austrian population held a nationwide KlimaTicket Ö. When regional tickets are included, the 
share rises to 13%.  

A survey conducted by the Austrian Ministry for Climate Action (BMK) found that 98% of respondents were 
satisfied  with  the  (national)  KlimaTicket,  with  70%  of  trips  being  long-distance  and  30%  regional.  While 
national-level data on changes in public transport usage are not yet available, Vienna’s experience offers some 
insight. Since the introduction of its local KlimaTicket in 2012, car use in the city has declined from 31% to 25% 
of total trips, while public transport usage has increased slightly, from 36% to 38%.23 However, the decrease 
in car usage cannot be attributed solely on the effects of the KlimaTicket. 

The  2022  KlimaTicket  report  finds  that  up  to  20%  of  KlimaTicket  journeys  would  have  been  made 
predominantly  by  passenger  car,  while  up  to  only  5  percent  of  journeys  would  not  have  been  made  at  all 
without the KlimaTicket Ö.24 Additionally, 2% of KlimaTicket-owners are new public transport users.25 

The measure is partially funded through ticket sales, which contribute to its financial sustainability. In 2022, 
the federal government allocated €160 million to support the initiative. Regional governments finance their own 
versions of the KlimaTicket but receive €180 million from the central government to support implementation 
and expand public transport services.26  

The KlimaTicket is also designed to work in synergy with other policies, particularly those aimed at improving 
transport  infrastructure.  This  integrated  approach  ensures  that  the  increased  demand  generated  by  the 
KlimaTicket does not compromise service quality.  

2.2.2.5  Scalability 

The  OV-chipkaart,  OVpay,  and  OV-fiets  represent  a  strong  example  of  scalability.  Starting  with  a  payment 
system  implemented  in  a  single  city,  the  program  was  expanded  both  geographically  and  in  terms  of  the 
services offered. New technologies enabled the unified payment system to incorporate contactless payment 
methods, such as bank cards and smartphones. Furthermore, the system was integrated with a bike-sharing 
program designed to encourage the use of public transport, especially when deployed in a coherent and well-
coordinated manner on the ground. 

The KlimaTicket Ö has demonstrated strong scalability, evolving from a local initiative in Vienna to a nationwide 
program. This expansion has enabled the measure to reach a broader segment of the population, including 
those who need to travel long distances across different regions, but still allowing citizens to purchase tickets 
based on their travel needs (i.e., regional tickets are available for those who travel mainly in one region). The 
integration of various transport modes into a single subscription model has proven effective in both urban and 
rural contexts. The measure’s design allows for further expansion, potentially incorporating additional services 
such as bike-sharing or micro-mobility options. Its success in Austria suggests that similar models could be 
scaled within other sectors or regions, provided that the necessary infrastructure and coordination mechanisms 
are in place. 

2.2.2.6  Replicability 

When it comes to replicability, the Dutch model is easily implementable in other Member States. At this point 
in  time,  the  technology  used  is  widespread  and  can  be  implemented  without  major  obstacles.  The  main 
challenge may arise in terms of coordination, especially in contexts where multiple local, regional, or national 
companies  provide  public  transport  services.  In  this  regard,  a  mediating  role  by  central  governments  is 
essential, as they are best placed to represent the interests of citizens, who would benefit from the positive 
effects of such programs. 

The Austrian model is highly replicable in other Member States, especially those with existing public transport 
infrastructure  and  a  willingness  to  invest  in  sustainable  mobility.  Unlike  fully  subsidised  systems,  the 
KlimaTicket  Ö  is  partially  self-financing  (through  the  sale  of  tickets)  while  offering  an  affordable  transport 
solution to its customers, making it a more sustainable option for countries with limited public budgets. The 
fixed-price  model  ensures  accessibility  while  maintaining  financial  stability  through  user  contributions.  This 

23 Fare's Fair: Experiences and Impacts of Fare Policies 
24 ClimateTicket Report 2022 
25 22_MA_Justin_Treutlein_Klimaticket.pdf 
26 KlimaTicket23. 

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balance makes the measure adaptable to different national contexts, with adjustments in pricing, eligibility, and 
funding  mechanisms.  Countries  with  fragmented  transport  systems  may  face  greater  challenges  in 
implementation (with higher benefits for final customers in terms of simplification), but Austria’s experience 
shows that with sufficient coordination and stakeholder engagement, these challenges can be overcome. The 
measure is likely to have the greatest impact in urbanised Member States with high levels of car dependency 
and strong climate commitments. 

Practicalities around implementation of the measure 

2.2.2.7  Speed of implementation 

The speed at which these measures can be implemented depends on several factors, including the structure 
of the public transport market, the capacity of the existing network, and the organizational capabilities of the 
central authorities. 

In  the  Netherlands,  the  OV-chipkaart  was  first  introduced  in  Rotterdam  in  2005.  In  the  following  years, 
coverage was gradually expanded until 2014, when the system became the universal fare system across all 
public transport in the Netherlands. The OV-fiets was first introduced in 2003 in selected locations and was 
progressively expanded as demand for bikes increased. Building on these experiences, similar programs can 
be adapted and implemented in a shorter timeframe. 

In Austria, the presence of annual network tickets in provinces such as Vienna, Tyrol, and Vorarlberg provided 
a solid foundation for national expansion. The development of the KlimaTicket Ö took approximately eighteen 
months  of  preparation  and  negotiation.  Pre-sales  began  on  October  1,  2021,  and  by  January  1,  2022,  all 
federal regions had launched their own region-specific KlimaTickets. This relatively rapid rollout was facilitated 
by prior experience, political commitment, and effective coordination among stakeholders.27  

2.2.3  Case Study: On-demand transport 

Overview of the measure 

2.2.3.1  Objectives and scope of the measure: 

On-demand transport (ODT), also called Demand Responsive Transport (DRT), offers a flexible alternative to 
fixed public transport by adapting services to passengers’ actual needs, improving accessibility in underserved 
or rural areas. ODT bridge the gap between private taxis and conventional public transport, providing spatial, 
temporal,  and  operational  flexibility  through  pooling  of  passenger  requests.  Services  include  flexible-route 
options, which can deviate to predefined stops and adjust schedules, and door-to-door options, which respond 
entirely to real-time demand. 

On-demand transport also consists of other services. For example: ride sharing services allow aggregation of 
the mobility demand for sharing a ride in the same vehicle (e.g. carpooling); and/or to use the same service 
(e.g.  taxi)  together  with  other  persons.  While  asset  sharing  services  allow  passengers  to  utilise/pick-up  a 
specific means of transport (bike, car. E-scooter, etc) without any property issue; users must be registered to 
common platforms. DRT covers a number of different roles in the mobility sector and is aimed at numerous 
different  actors,  dependant  on  the  model.  Notably,  DRT  supports  low-income  households,  senior  citizens, 
people with disabilities, students, tourists and citizens living in rural areas.  

2.2.3.2  Geographic scope: 

DRT models have been implemented in numerous MSs either as pilot schemes in certain provinces and in 
some cases, also with longer term financing structures and success. 

In Flanders, Belgium, the former Belbus 28 system was replaced in January 2024 by De Lijn Flex, which now 
provides region-wide coverage through app- and phone-based booking. 29 In the Hanover Region of Germany, 

27 https://www.bmimi.gv.at/themen/mobilitaet/1-2-3-
ticket/fakten.html#:~:text=Rechtliche%20Umsetzung%3A%20Zustimmung%20%C3%BCber%20Parteigrenzen,April%202021%20in%20
Kraft%20getreten. 
28 Belbus was introduced in Flanders in 1991. 
29 De Lijn Flex - De Lijn 

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sprinti began as a pilot in three municipalities in 2021 and expanded in December 2023 to twelve municipalities, 
with a mixed fleet of roughly 120 vehicles. 30 

Alongside these large-scale regional schemes, a range of more localised models illustrate how DRT adapts to 
different contexts. In Ireland, Ring a Link has operated since 2001 as a community-based provider, offering 
rural  mobility  through  23  owned  minibuses  and  10  contracted  vehicles.31  In  the  Netherlands,  Texelhopper 
integrates a fixed ferry shuttle and a main bus line with a network of nine demand-responsive minibuses across 
the  island  of  Texel,  ensuring  connectivity  via  app-based  bookings  and  payment  through  the  national  OV-
chipkaart. 32 In Spain, Vallibús Connecta’t serves suburban neighbourhoods through three flexible lines with 
87 stops, where trips are booked in advance and routes are optimised in real time to reduce waiting and travel 
times. 33 In Germany, EMMI-MOBIL operates in the small town of Bad Hindelang with two electric minibuses 
providing on-demand rides without timetables or routes, often connecting passengers to conventional buses, 
with free access included in local tourist passes.34 

2.2.3.3  Rationale, intervention logic and addressed barriers 

The  rationale  for  introducing  on-demand  transport  lies  in  addressing  the  structural  limitations  of  traditional 
fixed-route services, which often struggle with low occupancy, high operating costs, and poor alignment with 
actual mobility needs. Conventional public transport networks tend to be designed for high-density corridors 
and peak flows, leaving dispersed demand patterns underserved, whether in rural, suburban, or even certain 
urban  contexts.  This  creates  significant  barriers  to  accessibility,  reinforcing  dependence  on  private  cars, 
contributing to transport poverty, and increasing emissions. 

DRT intervenes by replacing or complementing low-performing routes with flexible, algorithm-based pooling 
systems that match passenger demand in real time.  Through  digital booking platforms and integration with 
existing ticketing and timetables, these schemes reduce wasted kilometres, optimise vehicle occupancy, and 
improve service responsiveness. They have been deployed both to strengthen connectivity in rural areas with 
limited public transport coverage and to support urban and suburban mobility by providing off-peak, nighttime, 
or feeder services to mainline rail and bus networks.  

More broadly, on-demand transport forms part of a wider set of measures that can incentivise modal shift away 
from private car use, while also providing critical first- and last-mile connectivity that ensures public transport 
becomes a viable and convenient option across diverse mobility contexts. 

Impact of the measure 

2.2.3.4  Expected impacts: 

The  expected  impacts  of  demand-responsive  transport  schemes  reflect  a  combination  of  increased 
accessibility, ridership growth, and environmental benefits, alongside investment and operational challenges. 
Across Europe, schemes such as Ring-A-Link, Texelhopper, Vallibús Connecta’t, De Lijn Flex, and sprinti have 
demonstrated  measurable  uptake  and  evolving  service  patterns.  Ring  a  Link  in  Ireland  grew  from  50,000 
annual riders in 2009 to over 200,000 in 2022, expanding coverage to students and commuters, and shifting 
from primarily social-inclusion services to a broader mobility role as regular services are strengthened under 
the national Connecting Ireland program. Similarly, Vallibús Connecta’t served around 15,500 passengers in 
2022, with plans to expand via taxi services to cover more stops, while Texelhopper in the Netherlands saw 
strong seasonal ridership increases, particularly among tourists, supported by app-based booking, e-ticketing, 
and  algorithmic  route  optimisation. 35  In  Flanders,  De  Lijn  Flex  has  improved  accessibility,  booking 
convenience,  and  integration  with  regional  mobility  policies,  while  sprinti  in  Hanover  recorded  two  million 
passenger  journeys  by  October  2024,  with  daily  ridership  around  3,500  and  25%  of  its  fleet  electrified, 
contributing to reduced local emissions.  

Challenges include low occupancy rates in some areas, rising operational costs due to subsidy reductions, 
and the need to support digitally excluded groups. Overall, these initiatives illustrate the potential of DRT to 

30 "Sprinti" becomes the largest on-demand public transport system in Germany 
31 SMARTA-GP-Ring-a-Link.pdf 
32 9-Texelhopper-DRT-NL.pdf 
33 5.-Vallibus-Connectat-ES.pdf 
34 EMMI-MOBIL - Mobility in the Allgäu | Bad Hindelang 
35 9-Texelhopper-DRT-NL.pdf 

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enhance  accessibility,  support  multimodal  integration,  and  contribute  to  low-carbon  mobility  while  offering 
synergies with broader transport policies. 

Integration 

The  success  of  DRT  services  depends  significantly  on  how  well  they  are  integrated  with  existing  public 
transport networks. A key challenge lies in the discrepancy between operators: while shared mobility services 
are  often  provided  by  smaller  players,  they  need  to  connect  with  larger,  conventional  actors  in  the  public 
transport network. The degree of integration varies, but for a DRT system to function effectively, it must be 
designed to fill a gap or complement existing services. This involves carefully defining service zones, operating 
hours, and use cases—whether as first- and last-mile solutions or as replacements for underused fixed-route 
services. 

Integrating  DRT  into  existing  infrastructure  models  is  equally  important,  as  this  reduces  costs  and  helps 
maintain efficiency. The Texelhopper illustrates this point effectively, having included flexible services within 
the  broader  transport  system  on  the  island.  Digital  integration  is  another  critical  factor.  The  Dutch  case  of 
ticketing integration, where the national OV-chipkaart 36 can be used on the Texelhopper, demonstrates how 
DRT can align with established public transport systems and simplify the user experience. 

At the same time, successful elements of DRT can also be transferred into conventional public transport. These 
include the use of algorithms that enable services to adapt to real-time demand, as well as integrated digital 
platforms  that  combine  multiple  modes  (such  as  bike  sharing,  traditional  public  transport,  and  DRT)  into  a 
single,  accessible  application.  In  certain  contexts,  DRT  could  potentially  serve  as  a  full  replacement  for 
conventional  public  transport,  offering  comparable  service  quality  at  lower  cost  due  to  greater  efficiency  in 
routing and stop patterns.37 

2.2.3.5  Scalability: 

Demand-responsive transport can be scaled from pilot projects to broader regional coverage when there is 
sufficient demand and proper planning. Feasibility studies, as conducted for Vallibús Connecta’t, help identify 
suitable  lines,  passenger  volumes,  and  resource  requirements,  including  drivers  and  vehicles.  Effective 
communication  with  local  communities,  as  seen  with  Texelhopper  in  the  Netherlands,  can  overcome  initial 
resistance,  while  adjustments  to  legal  frameworks  ensure  alignment  with  existing  transport  systems. 
Integration  of  digital  booking  platforms  with  larger  public  transport  or  national  ticketing  systems  simplifies 
access for passengers and encourages uptake. An example of successful scaling is sprinti, which grew from 
three pilot municipalities to twelve within two years. The principles of demand pooling, app-based booking, and 
integration into  fare systems enable scalability within the passenger transport  sector and offer potential  for 
adaptation to other domains such as healthcare transport or community-based shuttle services. 

2.2.3.6  Replicability: 

DRT is highly flexible and can be replicated across EU Member States, particularly in regions with dispersed 
populations, limited connectivity to mainline public transport, or aging demographics. Replicability depends on 
adequate funding, digital infrastructure, and the capacity of regional authorities to integrate DRT into fare and 
scheduling  systems.  Schemes  like  Texelhopper  benefit  from  ongoing  provincial  support,  illustrating  the 
importance of financial backing. In areas with an older population and/or limited familiarity with digital tools, 
the successful replication of such services may require investments in training people to use the necessary 
apps, and/or the inclusion of more familiar methods, such as booking by phone. 

Practicalities around implementation of the measure 

2.2.3.7  Speed of implementation: 

Demand-responsive transport services can be implemented relatively quickly, particularly when supported by 
clear funding mechanisms, regulatory frameworks, and user engagement. Local-level pilots in Flanders and 
Hanover transitioned to large-scale operations within two to three years, with De Lijn Flex covering the entire 
region by January 2024 and sprinti expanding to twelve municipalities by December 2023, securing funding 

36 See Case Study on reduced and simplified ticketing pricing for public transport for further information integrated ticketing. 
37 Potential Benefits of Demand Responsive Transport in Rural Areas: A Simulation Study in Lolland, Denmark 

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through at least 2027. Similarly, rural schemes in other Member States show rapid deployment when financing 
and planning are in place. In Ireland, Ring-a-Link is heavily subsidised through a mix of passenger receipts, 
National Transport Authority support, Department of Social Protection contributions, and local authority funds, 
while Vallibús Connecta’t in Spain is primarily municipality-funded and supplemented by ticket revenues and 
external funds. Texelhopper in the Netherlands required substantial initial investment (EUR 1.7 million) and 
subsidies (EUR 300,000), but is expected to reach self-sufficiency after 100,000 trips. Regulatory frameworks 
also  influence  implementation  speed,  as  local  governments  may  have  limited  mandates  to  support  rural 
mobility, and citizen engagement—such  as Vallibús staff assisting passengers  with  app use—can facilitate 
adoption. Across all cases, the main time and cost drivers are establishing digital booking systems, contracting 
operators,  and  conducting  communication  campaigns,  highlighting  that  DRT  can  be  deployed  efficiently  to 
address gaps in public transport coverage when these conditions are met. 

2.2.4  Case Study: CO2-based tax deductibility for company cars 

Overview of the measure 

2.2.4.1  Objectives and scope of the measure 

This  is  a  tax  measure  aimed  at  companies  with  commercially  registered  vehicles.  An  effective  measure  to 
promote ZEVs is to restrict access to tax incentives for companies based on vehicle emissions. This means 
that, if there are corresponding advantages for ZEVs, higher depreciation amounts can be claimed as operating 
expenses. This reduces the company's profits and, depending on the type of company, reduces the corporation 
tax or income tax payable. The higher tax deduction for low-emission and zero-emission vehicles encourages 
companies  to  purchase  such  vehicles  and  offsets  the  higher  purchase  costs  compared  to  conventional 
vehicles. The effectiveness of the measure depends on the total tax differential. 

2.2.4.2  Geographic scope 

Several European Member States have introduced higher tax deductions for commercially registered cars with 
low emissions.38 The measure is often coupled with further financial incentives. Implementation shows major 
differences in terms of the benefits for ZEVs at national level.  

Belgium stands out for its particularly ambitious tax depreciation scheme which has been met with a strong 
market response. While zero-emission cars can currently be 100% depreciated as operating expenses over 
their lifetime, the maximum deductibility for conventional cars is currently 75% and will be reduced continuously 
in the coming years (2025: 75%, 2026: 50%; 2027: 24%; 2028: 0%). The increased depreciation of ZEVs is 
supplemented  by  further  tax  incentives  in  Belgium.  These  include  a  benefit-in-kind  taxation,  which  is 
particularly favourable for ZEVs, a so-called ‘solidarity contribution’ that all companies pay and which also has 
a CO2 spread, as well as advantages in terms of ownership taxation for ZEVs. 39 

2.2.4.3  Rationale, intervention logic and addressed barriers  

Company cars account for 60% of new registrations in the European passenger car market and, given their 
higher mileage compared to private cars, are responsible for 74% of CO2 emissions from all new registrations. 
At the same time, the company car market is still lagging behind the private market in terms of electrification 
in  many  EU  Member  States.40  Due  to  the  low  average  initial  ownership  period  of  company  vehicles,  the 
company car market also has a strong influence on the structure of the future second-hand market, which is 
particularly relevant for private owners. Tax incentives for companies that result in a higher proportion of ZEVs 
therefore also have an impact on the second-hand market after a relatively short delay. 

In view  of higher procurement costs, the use of ZEVs is not yet sufficiently attractive for many  companies. 
Furthermore,  investments  must  be  made  in  the  development  of  charging  infrastructure.  The  higher  tax 
deductibility of ZEV procurement counteracts these obstacles. The decreasing deductibility of ICEVs makes it 
easier to plan and creates an increasing incentive for the procurement of ZEV for company fleets. 

Impact of the measure 

38 https://www.transportenvironment.org/uploads/files/The-good-tax-guide_2024-04-29-152700_elxe.pdf  
39 https://www.kbcbrussels.be/business/en/products/credit/fiscaliteit-
bedrijfswagens.html#:~:text=The%20tax%20deductibility%20of%20the%20vehicle%20and%20fuel,minimum%20of%2050%25%20and
%20a%20maximum%20of%20100%25.;Taxation%20of%20company%20cars%20|%20LeasePlan%20Belgium  
40 https://www.transportenvironment.org/uploads/files/Unveiling-Europes-corporate-car-problem_TE.pdf 

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2.2.4.4  Expected impacts 

As the example of Belgium with its very strong scheme shows, the measure can have a very strong effect on 
demand for ZEVs.  While the share of ZEV registrations remained  in the single-digit percentage range until 
2021 in Belgium, it increased after the introduction of supporting measures for ZE company cars to over 28% 
in  2024.  This  increase  is  mainly  due  to  the  rise  in  company  cars,  which  accounted  for  over  86%  of  ZEV 
registrations in 2024. However, the rapid turnover of company ZEVs into the second-hand market is not yet 
matched  by  sufficient  private  demand,  leading  to  low  residual  values  and  uncertainty  for  fleet  operators.41 
Reduced  demand  in  the  second-hand  market  is  likely  due  to  concerns  over  the  charging  infrastructure, 
uncertainties regarding battery degradation and limited financial incentives for private buyers. 

The  increased  tax  deductibility  of  ZEVs  is  combined  in  many  countries  with  further  tax  advantages  for  ZE 
company cars. These include benefit-in-kind (BIK) taxation for salary cars, VAT deductibility and ownership 
tax. In particular, the tax deductibility of the procurement of ZEVs has so far been differentiated according to 
CO2  in  comparatively  few  countries. 42  The  tax  incentives  for  company  cars  are  often  supplemented  by  a 
benefit-in-kind tax at national level, which also favours the use of ZEVs. However, the structure also varies 
greatly between countries.43 

If ZEVs are favoured in terms of taxation, increasing demand will result in considerable tax losses, which will 
burden the public budget. These can be compensated for if the tax advantages for ICEVs are reduced at the 
same time (see the example of Belgium). 

2.2.4.5  Scalability 

There are no theoretical restrictions in the scalability of this measure, as all companies can benefit from tax 
deductions.  For  implementation,  it  should  be  noted  that  the  effectiveness  of  the  measure  depends  on  the 
availability of suitable vehicle models and the charging infrastructure at different locations (at home, in public, 
at work). In particular, if only one-sided tax advantages are granted for ZEVs, increasing demand could lead 
to significant tax losses that would place a burden on public finances. A reduced depreciation allowance for 
ICEV could be used for refinancing. In addition, the development of demand on the second-hand market and 
the associated residual value development plays a relevant role in the attractiveness of ZE company cars. If 
there is no demand for ZEVs on the second-hand market and residual values therefore fall, the economic risks 
for fleet operators who purchase ZEVs as new vehicles increase. 

In addition, there is a risk that an unrestricted tax incentive system will result in the purchase of vehicles from 
the higher vehicle segments with high-quality equipment, and that ZEV models, which are typically demanded 
by  households  with  medium  and  low  incomes,  will  be  underrepresented  in  the  second-hand  market  as  a 
result.44 

2.2.4.6  Replicability 

Since all EU member states have implemented tax deductibility for company cars, a high degree of replicability 
is generally guaranteed.45 The fact that in almost all Member States the majority of new car registrations are 
made by companies also points to a high degree of transferability. 46 

The  measure  is  expected  to  have  a  particularly  strong  impact  in  countries  that  currently  have  little  tax 
differentiation  between  ZEVs  and  conventional  company  cars  and  have  a  good  charging  infrastructure  at 
different locations. 

Practicalities around implementation of the measure 

2.2.4.7  Speed of implementation 

The introduction of tax measures takes 1–3 years and requires the development of policy measures, legislative 
approval  and  administrative  arrangements.  Coordination  with  tax  authorities,  businesses  and  enforcement 

41 https://alternative-fuels-observatory.ec.europa.eu/general-information/news/belgium-record-year-bevs-285-market-share-2024   
42 https://www.transportenvironment.org/uploads/files/The-good-tax-guide_2024-04-29-152700_elxe.pdf  
43 https://www.transportenvironment.org/uploads/files/20241014_TE-Company-car-fossil-fuel-subsidies_Final-
report_Addressed_Comments_2024-10-15-100425_uqws.pdf 
44 Belgium: record year for BEVs, 28,5% market share in 2024 | European Alternative Fuels Observatory. 
45 https://www.transportenvironment.org/uploads/files/The-good-tax-guide_2024-04-29-152700_elxe.pdf 

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agencies  ensures  compliance.  As  implementation  can  build  on  existing  tax  regulations  for  company  cars, 
shorter implementation periods are likely. 

2.2.5  Case Study: Price transparency for public charging  

Overview of the measure 

2.2.5.1  Objectives and scope of the measure 

This regulatory measure addresses the operation of public charging infrastructure and pricing. It is aimed at 
charging point operators (CPOs) and mobility service providers (MSPs). It is intended to ensure fair competition 
and provide consumers with a transparent overview of the market, in order to minimise the costs of purchasing 
electricity at public charging points. 

Price transparency is necessary to create competition between providers of public charging infrastructure and 
to give customers the opportunity to access locations with favourable charging prices. Today, the price for ad-
hoc  charging  in  particular  is  not  fully  transparent  to  customers  in  advance.  The  AFIR  already  sets  out 
requirements for charging infrastructure operators to publish charging prices.47 This means that all CPOs must 
make price and operational data for all public charging points publicly available free of charge by the end of 
2024.  National  implementation  is  currently  underway,  which  will  introduce  a  uniform  data  format  and  allow 
public data to be used more easily. Experts assume that it will be fully implemented across Europe by 2026. 

The Member States differed greatly in terms of the number of CPOs and MSPs and exhibited varying degrees 
of market concentration, but current studies have not identified any serious distortions of competition. However, 
it was found that transparency in ad-hoc prices is a factor that most significantly impairs competition in the 
market.48 

2.2.5.2  Geographic scope 

The AFIR already sets requirements for non-discriminatory access and price transparency for public charging 
infrastructure.  However,  the  initial  situation  for  public  charging  infrastructure  and  the  implementation  at 
member state level vary.  

By  2026,  a  national  online  service  providing  information  on  ad-hoc  charging  fees  will  be  established  in 
Germany,  known  as  the  ‘National  Access  Point’. 49  Price  transparency  for  public  charging  stations  was 
identified as an important issue in the coalition agreement of the new federal government. Specific measures 
have yet to be agreed upon. 

A roaming mandate is not implemented in the AFIR and therefore cannot be implemented through national 
legislation. Several Member States are encouraging roaming in other ways (e.g. as a condition in tenders or 
through  other  contractual  arrangements).  A  prominent  example  is  Portugal,  which  promotes  nationwide 
roaming by supporting CPOs and MSPs in integrating into the national roaming platform MOBI.E through the 
implementation of the Open Charge Point Interface (OCPI) roaming protocol. 50 

2.2.5.3  Rationale, intervention logic and addressed barriers  

In addition to the purchase costs of ZEVs, the energy costs are particularly relevant with regard to the overall 
costs and therefore the purchase decision. Charging at home and at work is currently the most popular option 
among electric vehicle users. In Europe, more than 70% of charging is carried out at home or at work. 51 Car 
users  (e.g.  in  apartment  blocks  in  cities)  without  their  own  parking  space  or  with  a  high  proportion  of  long 
journeys, on the other hand, are heavily dependent on public charging infrastructure. 

There  are  major  differences  in  electricity  procurement  costs  between  car  owners  with  and  without  private 
charging infrastructure. Car users who are highly dependent on public charging infrastructure have significantly 
higher electricity costs on average and therefore less incentive to switch to ZEVs. While conventional fuels are 
equally  expensive  for  all  users  (at  the  petrol  station)  despite  large  differences  in  prices  in  the  different  EU 

47 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1804  
48 https://theicct.org/wp-content/uploads/2025/02/ID-290-%E2%80%93-EU-charging_IZEVA_final.pdf  
49 https://nationale-leitstelle.de/ladeinfrastruktur-im-eu-kontext/  
50 https://www.mobie.pt/documents/42032/143944/20230620_MOBIE_OCPI_Phase2_Internal_v1_6.pdf/fdb22f6a-3ffc-529d-8f9f-
d27706875de7?t=1716289763105 
51 EAFO: Electric vehicle recharging prices 

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countries, there is a differentiated price regime for electricity for ZEVs. While wealthier car owners in particular 
can charge their vehicles at home with cheap, partly self-produced electricity, people without private charging 
facilities - including a high proportion of low-income households - tend to be dependent on more expensive 
public  charging  stations.  Charging  stations  at  the  workplace  could  offer  an  economic  solution  for  workers. 
Since VAT on publicly charged electricity is normally higher than on household electricity in several EU member 
states, the price difference increases further in these cases. 

In view of the early market phase, competition in public charging is not yet fully developed and pricing is still 
not fully transparent to users and partly complex. Although kWh-based billing now dominates the market, there 
are also time-based tariffs and combinations of time- and kWh-based tariffs, as well as other combinations 
with flat fees, parking fees and roaming charges. The aim of the measure is therefore to increase competition 
between charging infrastructure and mobility providers, create non-discriminatory access to public charging 
infrastructure and establish price transparency for users. 

Impact of the measure 

2.2.5.4  Expected impacts 

Several studies on the effects of greater price transparency are currently available. 52 Although increased price 
transparency  also  carries  the  risk  of  increased  price  fixing  between  market  players,  it  is  assumed  that  the 
positive effects of greater transparency for customers outweigh the negative effects. In this context, it is also 
relevant that ad-hoc prices are often cheaper than contract prices at MSPs, but this is often not apparent to 
customers due to a lack of transparency. 

Further  measures  are  considered  essential  to  increase  competition  in  price  formation.  These  include  non-
discriminatory access to charging infrastructure and the removal of technical barriers to ad-hoc payment, which 
is often incompatible with the plug-and-charge approach. As a result, according to AFIR, from 13 April 2024, 
a low-threshold payment method for ad hoc charging will be mandatory for newly installed charging points, 
and this will apply to all fast chargers by 1 January 2027. In addition, the allocation of public space for charging 
locations should be more competitive, as it has been found that regional monopolies sometimes exploit their 
market power in pricing. 

2.2.5.5  Scalability 

A pre-requisite for the measure to be fully effective is that price transparency is created for all public charging 
points. Corresponding specifications are already being made throughout the EU via the  AFIR and must be 
implemented at national level. 

2.2.5.6  Replicability 

The maturity and market structure of the charging infrastructure varies in the EU Member States. The AFIR 
makes it imperative to implement the price transparency requirements. The measures can only be expected 
to be highly effective if they are combined with other national measures to improve competition (see above). 

Practicalities around implementation of the measure 

2.2.5.7  Speed of implementation 

The AFIR guidelines require the rapid implementation of public price information on ad-hoc charging and low-
threshold payment methods. The measures are currently being implemented at national level. Experts believe 
that member states bear primary responsibility for the rapid implementation of price transparency requirements 
and for national monitoring of compliance with these requirements by infrastructure operators. 

2.2.6  Case  Study:  Urban  transport  planning  towards  modal  shift  -  Superblock  model  for 

redistribution of public spaces 

Overview of the measure 

52 https://theicct.org/wp-content/uploads/2025/02/ID-290-%E2%80%93-EU-charging_IZEVA_final.pdf    

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2.2.6.1  Objectives and scope of the measure 

Urban planning is a highly important tool that can be used to (re)organise urban space. In the context of this 
measure,  urban  planning  can  be  used  to  redistribute  the  space  allocated  to  different  means  of  transport, 
restricting capacity of private vehicles and increasing capacity of active mobility and public transport. This tool 
is particularly important in cities with a severe shortage of public space, where the strengthening of a transport 
mode (e.g., public transport) requires the redistribution of this scarce space. 

Superblocks are a policy tool that consists in the creation of areas (the superblocks) where traffic is restricted 
and public space is repurposed. They aim to reduce traffic through changes to urban planning. The measures 
generally  contribute  to  climate  change  mitigation  through  shifting  to  more  sustainable  transport  modes, 
accompanied by a number of co-benefits such as improved living and health conditions of inhabitants within 
the restructured area. 

On a more practical level, access to interior roads within superblocks are significantly reduced, by closing off 
street junctions and implementing one-way systems. Public transport stops are within walking distance and in 
general parking options are removed (or significantly reduced) to free up public space. As will be discussed 
further below, this creates opportunities for synergies with other measures to ramp up development of cycling 
paths, pedestrian walkways, leisure areas and promotion of public transport.  

The targeted stakeholders for these measures are all residents in areas where superblocks are implemented, 
who will be incentivised to rely more on alternative transport modes rather than private cars. 

2.2.6.2  Geographic scope 

Superblock  models  have  been  explored  in  a  variety  of  cities  within  EU  Member  States.  Three  significant 
examples are found in Spain (Barcelona), Austria (Vienna) and Germany (Berlin). 

Barcelona: 

The implementation of superblocks (“Superilles” in Catalan) in Barcelona began in 1993, in the El Born district. 
In 2005, additional superblocks were planned for the districts of Gràcia and Sants Montjuïc. Between 2016 
and 2019, three more superblocks were implemented, in Poblenou (34,000 inhabitants in 2016), Sant Antoni 
(38,000 inhabitants in 2016), and Horta (27,000 inhabitants in 2016).53 The current plan is to implement 503 
superblocks across the entire city.  

Vienna (Supergratzl): Pilot began in 2022 in the Favoriten district, featuring: 

•  Pavement painting/ planters – test an area affordably before implemented a permanent change 
•  Street furniture 
•  62 new trees 
•  Water play areas 

Key structural elements include diagonal filters, one-way systems, and greening/public space improvements. 
The pilot superblocks were introduced to Vienna in the 10th district, which is an outlying district and more than 
200,000  residents.  It  is  considered  a  working-class  neighbourhood,  where  residents  have  a  low  average 
income by district standards. Car ownership rates are higher than in the 7th district. 

The 7th district (Neubau) is located near the centre of Vienna, which is densely populated and covers a smaller 
area than district 10. The 7th district is an upper-middle class area where residents have higher incomes and 
residents here generally own fewer cars compared with other districts – residents are more accustomed to 
using  alternative  forms  of  mobility  outside  of  cars.  Residents  here  are  more  open  to  the  introduction  of  a 
superblock in comparison with other areas. 

The 17th district is the third area that Vienna have introduced a superblock, and this is a formerly industrial 
area. Now it  is a middle-class residential district, with nearly  60,000 inhabitants  and a high share of green 
urban space compared to the other districts. This area has the highest car ownership of the 3 districts.  

Berlin:  

Differently  from  the  experience  in  Austria  and  Spain,  the  initiative  to  implement  superblocks  in  Berlin  was 
bottom-up,  starting  from  residents  who  brought  Kiezblocks  in  the  political  agenda.  By  November  2024,  36 

53 The Superblock model: A review of an innovative urban model for sustainability, liveability, health and well-being - ScienceDirect 

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Kiezblocks 54  were  approved  in  district  parliaments,  with  72  initiatives  enacted  since  2020.  The  effective 
implementation of superblocks in Berlin is unclear, as Kiezblocks can be defined in different ways. 

Berlin has incorporated modal filters and one-way streets under national traffic laws, to trial these zones.55  

2.2.6.3  Rationale, intervention logic and addressed barriers  

Car-bound  mobility  is  seen  as  one  of  the  main  causes  of  GHG  emissions  in  cities.  Current  institutional 
structures tend to favour car-bound mobility and despite measures to support well-established public transport 
systems, many cities struggle to reduce car use and change the transport trajectory with an effective modal 
shift. To effectively reduce GHG emissions, further measures to reduce car-mobility infrastructure is necessary 
such as changes to the urban planning regime through the implementation of superblocks. 

Superblocks  are  effective  in  reducing  the  space  allocated  to  cars,  encouraging  the  adoption  of  alternative 
modes  of  transport.  More  broadly,  their  implementation  often  requires  the  reorganisation  of  nearby  public 
transport networks to provide a practical and convenient alternative to car use. 

Impact of the measure 

2.2.6.4  Expected impacts 

Due to its cross-cutting nature, this policy has a wide range of impacts, including effects on mobility choices 
(modal shift), air quality, and overall well-being. 

Modal shift: 

Superblocks have been polemic in different cities, but gained popularity in recent times in some areas. There 
are only limited studies on the effects on modal shift due to the rather new measure. However, the Barcelona 
City Council estimated that the implementation of the 503 superblocks in the city would resolve in a 19.2% 
reduction in car usage, and translated public transport, cycling or walking. 56 

A study conducted on the Austrian capital analysed the potential effects of implementing superblocks on modal 
shift. To do so, the authors first selected all neighbourhoods in the city that exhibited the three characteristics 
of an ideal superblock: good access to public transport, high population density, and a higher proportion of 
space dedicated to vehicles compared to that dedicated to pedestrians. The authors then estimated the effects 
on trips per day (categorised as walking, cycling, car use, and public transport) based on the implementation 
of  varying  numbers  of  superblocks  with  different  configurations.  The  results  show  that  car  trips  tend  to 
decrease  (modestly)  as  the  number  of  superblocks  increases,  in  favour  of  walking  and  the  use  of  public 
transport. The effects on cycling trips, however, remain uncertain. 57  

Co-benefits: 

The  co-benefits  associated  with  the  implementation  of  superblocks  relate  to  environmental  factors  and 
residents'  health.  Specifically,  a  study  on  the  case  of  Barcelona  (assuming  the  implementation  of  503 
superblocks), estimates a reduction in pollution (NO
), noise, and heat, due to the increase in green spaces 
replacing areas previously dedicated to cars. In addition, based on an increase in public transport use, cycling, 
and walking, using estimates provided by the Barcelona City Council58, the researchers estimated that 667 
premature deaths could be avoided each year.59 

₂

2.2.6.5  Scalability 

The potential scalability of superblocks depends on a number of factors, both technical and social. In some 
cases, certain urban layouts (e.g. the grid-like system of  Barcelona)  are more conducive to the creation  of 
superblocks.  The  presence  of  public  transport  networks  capable  of  supporting  increased  demand  is  also 
essential  to  avoid friction  with the population. In some  instances, this requires greater public  investment  in 
transport infrastructure to increase capacity. 

54 Neologism created by the merger of Superblocks and Kiez, a colloquial German word used to refer to city neighbourhoods in Berlin. 
55 A map of “Kiezblock” called superblocks in Berlin (Initiatives, politically decided and already (partially) implemented superblocks can be 
found here: https://www.kiezblocks.de/ 
56 Changing the urban design of cities for health: The superblock model - ScienceDirect 
57 ITS_European_Congress_2023_Lisbon.pdf 
58 Urban mobility plan of Barcelona PMU 2013-2018 
59 The Superblock model: A review of an innovative urban model for sustainability, liveability, health and well-being - ScienceDirect 

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The  development  plan  for  superblocks  should  also  prioritise  the  implementation  in  areas  where  the 
effectiveness of superblock is maximised. For example, modelling suggests that superblocks in Vienna are up 
to 2-3 times more effective when implemented in more deprived areas compared to more affluent urban areas. 

From a social perspective, the main challenge arises from the resistance that residents may show towards 
such changes, due to the perception of negative effects (such as reduced mobility or rising housing costs) that 
are not fully offset by the positive outcomes. A specific example illustrating the potential limits to scalability is 
the neighbourhood of Poblenou in Barcelona. In this neighbourhood, residents complained about their marginal 
role in the decision-making process, especially considering that the superblock project was announced during 
the  summer  vacation  and  executed  in  September,  leaving  no  time  for  public  discussion.  Parking  was 
mentioned  as  a  key  issue,  along  with  difficulties  related  to  the  loading  and  unloading  of  goods  for  local 
businesses. Furthermore, it was highlighted that while superblocks may have positive effects on some streets 
(i.e., reduced noise and air pollution), residents on exterior roads (i.e., streets where traffic is not restricted) 
may face increased traffic levels and associated negative effects, such as noise and pollution, thereby creating 
disparities between residents. 

Additionally, a significant concern among residents was the risk of gentrification resulting from the improved 
quality of life in the area. One possible solution to the social resistance that superblocks may provoke is to 
adopt a more inclusive decision-making process. A good example is the Berlin Kiezblocks model, where the 
development of superblocks was initiated by residents and then pushed onto the political agenda, giving local 
communities a central role in the planning process. 

2.2.6.6  Replicability 

There  is  a  lot  of  potential  for  the  superblock  model  to  have  an  impact  in  reducing  traffic  and  promoting 
decarbonisation  in  urban  areas.  Specifically,  Member  States  with  higher  potential  are  those  with  higher 
urbanisation rates and where other measures to limit private vehicle use and promote public transport remain 
underutilised.  

2.2.6.7  Speed of implementation 

The measure can be implemented in the short term. The most time intensive phases of its development are 
the planning, consultation, and public participation. The latter two are essential, as they involve citizens in the 
decision-making  process  and  help  reduce  resistance  to  the  implementation  of  superblocks.  During  the 
planning,  it must be ensured that the interests of other citizens are considered  (e.g., those living  in nearby 
neighbourhoods). Furthermore, the planning should consider the variety of stakeholders involved, and should 
grant  access to local businesses, craftsmen, people  with reduced mobility and  emergency vehicles among 
others. In Barcelona, the consultation activity increased after the Poblenou experience, dedicating more time 
to involve citizens in the project and building support for the measure. Similarly, Kiezblocks in Berlin rely heavily 
on community engagement, which fosters support but slower rollout. 

Once  the  project  has  been  approved,  the  physical  transformation  of  the  areas  requires  a  relatively  short 
amount of time, depending on the availability of capacity to carry out the necessary works (such as the creation 
of green spaces, the development of community areas, and the expansion of complementary public transport 
services). In Vienna, the implementation of the Supergrätzl Favoriten will take approximately four years, with 
the pilot phase started in summer 2022. These four years include the entire planning, the implementation of 
diagonal filters for traffic reorganisation, and implementation of structural interventions. However, it was noted 
that  the  positive  effects,  in  terms  of  traffic  calming,  were  already  evident  after  the  first  year  of  the  pilot’s 
implementation. 60 

60 Superblocks between theory and practice: insights from an international e-Delphi process and urban l 

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2.2.7  Case Study: Financial incentives for charging infrastructure for heavy-duty vehicles, including 

grid connection 

Overview of the measure 

2.2.7.1  Objectives and scope of the measure 

The availability of charging infrastructure is one of the main challenges in the electrification of heavy goods 
transport. A recent study indicates that infrastructure for charging at the depot plays a significant role for electric 
trucks61. The cost of constructing these depot charging stations can vary significantly, with  grid connection 
expenses representing a major cost driver. To support the expansion of charging infrastructure, several EU 
countries provide financial incentives to companies for the installation of charging points.  

2.2.7.2  Geographic scope 

Various Member States have implemented financial support for charging infrastructure, for example Germany, 
Spain,  France  and  Italy.  However,  the  French  funding  programme  in  particular  addresses  private  charging 
infrastructure for heavy commercial vehicles and includes the grid connection.  

Other  member  states,  such  as  Spain  with  its  MOVE  III  programme,  are  promoting  both  public  and  private 
charging infrastructure for passenger vehicles and freight transport.  

The level of financial support provided, as well as the criteria by which it is scaled, varies across countries. 
Support may differ depending on characteristics of the applicant or the specific type of charging point. In some 
cases, funding is limited to certain types of charging infrastructure for specific applications (e.g., public fast-
charging stations for trucks), while in others, broader support is offered for both private and public charging 
infrastructure. 

With the Advenir programme, France is subsidising charging infrastructure and the grid connection for the first 
1,000  charging  points  in  depots  for  municipalities  or  companies  for  heavy  commercial  vehicles  of  vehicle 
classes N2 or N3 and heavy vehicles for passenger transport. These are subsidies for the infrastructure and 
the grid connection of the depot.  

The subsidy amount for the charging infrastructure is 50 % of the net costs for the delivery and installation of 
the subsidised charging points, with an upper limit of between €2,200 per charging point 12-43 kW AC and 
€15,000 for DC charging points over 140 kW, depending on the charging power.  

For charging infrastructure over 500 kVA, additional funding can be provided for other components such as 
the  grid  connection.  Depending  on  the  connected  power,  this  funding  ranges  between  €100,000  for 
connections with ≥ 500 kVA and €960,000 (excluding VAT) for connections ≥ 8,000 kVA. 

In Spain, the MOVE III62 program supports the adoption of electric mobility. Initially endowed with €400 million, 
the program's budget was later increased to €1.55 billion. One key component of MOVE III is financial support 
for companies and public institutions in the development  of  both private  and public charging infrastructure. 
This includes all necessary electrical components such as grid connections and transformers. Depending on 
company size and charging capacity, between 20% and 50% of costs are covered, with higher support levels 
available for smaller enterprises and higher-capacity chargers. By the end of 2023, a total of 99,700 charging 
points had been financed under the program, which may also have included charging infrastructure for heavy 
goods vehicles.63  

2.2.7.3  Rationale, intervention logic and addressed barriers  

The  availability  of  public  and  private  charging  infrastructure  remains  one  of  the  key  challenges  for  the 
decarbonization of the transport sector. 

The costs associated with building charging stations are highly variable, with grid connection expenses often 
representing a significant portion of the total investment. To support the expansion of charging infrastructure, 
several countries offer financial incentives to companies for the installation of charging points. 

These financial incentives serve two main purposes: Firstly, they help companies advance the electrification 
of  their  own  vehicle  fleets  by  alleviating  the  high  upfront  investment  required  to  install  private  charging 
infrastructure. Secondly, they reduce the financial risk associated with building and operating public charging 

61 https://www.oeko.de/fileadmin/oekodoc/TE_truck-depot-charging.pdf  
62 https://www.idae.es/ayudas-y-financiacion/para-movilidad-y-vehiculos/programa-moves-iii  
63 https://evtcp.org/country/spain/ 

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stations,  thereby  improving  the  business  case  encouraging  private  investment  in  publicly  accessible 
infrastructure. This, in turn, improves the overall availability of charging stations, making the use of electric 
vehicles  more  practical  and  reliable  by  reducing  concerns  about  access  to  mid-journey  charging  options. 
Moreover, enhanced financial support for small businesses ensures that the entire market is included in the 
transition. 

By  offering  proportionally  higher  subsidies  to  smaller  enterprises,  the  measures  help  mitigate  the  relatively 
greater financial burden these companies face when investing in charging infrastructure. 

Impact of the measure 

2.2.7.4  Expected impacts 

This measure is intended to increase the number private depot-charging stations, thereby creating stronger 
incentives to purchase and use electric vehicles.  

By January 2025, the French Advenir programme had provided €5.1 million in funding for 972 charging points 
at  transport  depots  for  heavy-duty  vehicles,  as  well  as  24  additional  charging  points  that  were  publicly 
accessible to trucks64. 

In Spain, €971.79 million has already been used within the MOVE III program to fund 104,048 electric vehicles 
and 99,700 charging points. However, the programme is not specifically aimed at heavy commercial vehicles 65.  

Funding the charging infrastructure and in particular the grid connection in depots with large fleets that require 
high connection capacities requires considerable public investment.   

Moreover, the cost of installing charging infrastructure is only part of the challenge. Fast permitting procedures, 
sufficient available space, affordable electricity prices, and access to a strong, reliable grid are also crucial. 
Finally, the deployment of this infrastructure must go hand in hand with the availability of electric trucks that 
can make use of it. 

Third-party transport companies could benefit directly from the funding if funded companies allow others to 
use their charging infrastructure as semi-private or semi-public charging infrastructure in large industrial and 
logistics centres.  

2.2.7.5  Scalability 

In  France,  only  1,000  charging  points  were  funded,  covering  heavy-duty  vehicles  for  goods  as  well  as 
passenger  transport.  The  average  funding  of  just  over  €5,000  per  charging  point  indicates  that  small 
infrastructure without large network connections was mostly funded. This suggests that there is a possibility of 
scaling up the programme with the same range of stakeholders.  

In Spain, a wide range of stakeholder groups are eligible for funding, including individuals and self-employed 
persons, homeowner associations, legal entities incorporated in Spain, industrial estate conservation entities, 
and agricultural transformation companies.  

Projects in other countries can also be more regionally focused, with funding limited to specific areas. However, 
the scalability of these measures largely depends on the availability of financial resources, as such initiatives 
require  significant  public  investment  and  should  include  accompanying  measures  such  as  a  simplified 
application process and provision of information for grid connections.  

Simple  application  procedures  that  do  not  involve  complex  and  time-consuming  tenders  should  be 
implemented to reach SMEs. More detail on this activity is included in section 2..6. 

2.2.7.6  Replicability 

The  subsidisation  of  charging  infrastructure  construction  is  a  measure  that  can  be  applied  across  all  EU 
Member  States.  The  key  factors  for  successful  implementation  are  the  availability  of  sufficient  financial 
resources and the presence of the necessary technical conditions within regional and national energy grids. A 
sufficiently high level of support is essential to ensure the effectiveness of the measure, particularly in enabling 
smaller companies—often deterred by high upfront investment costs—to participate in the transition. 

Practicalities around implementation of the measure 

64 https://www.ecologie.gouv.fr/presse/electrification-poids-lourds 
65 https://evtcp.org/country/spain/MOVE  

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2.2.7.7  Speed of implementation 

Depending on the complexity of the program and the administrative structures in place, implementation can 
proceed  very  quickly  or  take  significantly  longer.  In  cases  where  rapid  implementation  is  required,  simpler 
programs can be organized within a few months, while more complex schemes may take several years. The 
more  institutional  experience  available,  the  faster  the  process  tends  to  be.  In  Spain,  the  implementation 
timeline was relatively short, with funding already made available by the end of 2023 after the decision was 
made in April 202166.  

However, the application for and realisation of grid connections can take several years in individual member 
states 67. For this reason, not only should such measures be implemented quickly, but communication between 
transport companies and grid operators should also be standardised and accelerated.  

2.2.8  Case Study: Streamlining and harmonising administrative processes for grid connections 

Overview of the measure 

2.2.8.1  Objectives and scope of the measure 

Streamlining and harmonising administrative processes for grid connections are crucial for quicker setup of 
charging infrastructure for electric vehicles. The aim of this package of measures is to simplify grid connection 
and permitting processes to ensure timely approval and implementation of infrastructure development for EVs, 
which  in  turn  incentivises  private  investment  in  charge  points.  This  includes  setting  clear  timelines  for 
connection requests and simplifying application processes. 

The measures for streamlining and harmonising administrative processes help to: 

•  Accelerate the roll-out of EV charging 
• 
• 

Increase collaboration between key electricity network actors 
Increase  knowledge  and  understanding  of  EV  infrastructure  procedure  from  transport  and  energy 
sectors. 

The targeted stakeholders for the measure include Distribution network operators (DNOs) and independent 
distribution  network  operators  (IDNOs),  local  authorities,  the  market  regulator  (OFGEM)  and  wider 
government. However, the main beneficiaries are charging point operators (CPOs), EV owners and private 
investors in charging points. 

2.2.8.2  Geographic scope 

The Netherlands is taking action both on the demand-side and supply side of the grid in order to tackle grid 
congestion, with over  12,000 companies waiting for  a new  or expanded grid connection with up to 90%  of 
Dutch businesses experiencing direct or indirect consequences of grid congestion. In coordination with grid 
operators,  regulators  and  market  stakeholders,  is  working  on more  than  100  targeted  actions to  address 
congestion and avoid a systemic failure. The measures are focussed around 3 key principles: 

1.  Sneller  Bouwen  (Faster  Construction): accelerating  the  expansion  of  infrastructure  through 

innovation, streamlined procedures and multi-level collaboration. 

2.  Beter Benutten (Better Utilisation): includes new flexible contracts for large users, optimised use of 

existing networks and shared grid access agreements. 

3.  Slimmer Inzicht (Smarter Insight): focuses on capacity maps, digital tools and data-driven planning 

to prioritise investments.68 

In the UK workshops have been held with key stakeholders such as CPOs and DNOs to take several steps to 
streamline and harmonise administrative processes for grid connections. These include:   

1.  DNOs providing clear guidance on next steps and communicating with customers, particularly when 
giving milestone updates on progress toward energisation after a connection offer has been accepted 
and a timeframe for energisation is provided. DNOs must also outline key areas which may lead to 
delays in energisation of a ChargePoint. 

66 https://evtcp.org/country/spain/ 
67 https://www.oeko.de//fileadmin/oekodoc/TE_truck-depot-charging.pdf 
68 Businesses on a waiting list for power: The Netherlands launches 100 measures to ease grid congestion - Strategic Energy Europe 

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2.  Where local authorities and CPOs are operating across DNO boundaries and need approvals from 
multiple  DNOs,  DNOs  should  hold  joint,  cross-boundary  surgeries  to  simplify  the  work  on  these 
projects.  

3.  DNOs collaborating through the Electricity Networks Association to create a single information portal 
containing  weblinks,  documentation  and  other  information  /  checklists  relevant  and  helpful  to 
connection applicants to navigate DNO application processes.  

•  DNOs allowing independent connection providers to carry out design work for ChargePoint installation and 
providing consistent approaches to the procedure of allowing this to take place. Contestable design works 
include the installation of cables, substations and other plants associated with the new connection. 69 

2.2.8.3  Rationale, intervention logic and addressed barriers 

When a ChargePoint is installed, it is connected to the electricity grid. Power to the charging device then needs 
to be switched on by the DNO. Energisation takes place only after all civil works and wider reinforcement works 
have taken place by the CPO. However, when infrastructure installations are complete there is often backlogs 
as  well  as  longer  payback  periods  for  CPO  operators  who  cannot  generate  revenue  while  they  await 
energisation.  Increasing  transparency  on  energisation  timeframes  and  providing  guidance  to  customers  on 
next steps to customers should alleviate these information issues. 

Creating a centralised information portal for grid application support should remove inconsistencies in offers 
from multiple DNOs. This will speed up the delivery of connection application processes through a reduction 
in  application  errors  and  duplications  from  CPOs,  which  in  turn  will  alleviate  resource  demands  on  DNOs 
through minimal feedback with applicants, ultimately resulting in lower costs and time saved.  

Finally,  allowing  independent  connection  providers  to  carry  out  contestable  works  on  design  and 
implementation  of  ChargePoint’s  will  reduce  the  delivery  time  for  connection  requests  to  be  actioned.Error! 
Bookmark not defined. 

Impact of the measure 

2.2.8.4  Expected impacts 

Increasing transparency on energisation timeframes and providing guidance to customers on  next steps to 
customers  should  alleviate  informational  issues.  They  will  have  a  direct  impact  on  the  consumers  who  are 
waiting  for  a  ChargePoint  to  be  available  which  benefits  all  current  and  prospective EV owners. Increased 
the  relationship 
transparency  and  clarity  of  process  of  energisation  will  also  positively 
between CPOs and DNOs. Finally, it will ensure that CPOs know when their assets will be generating revenue 
and will allow them to plan future investments. It secures their investments and allows for effective planning of 
national  charging  networks  on  a  larger  scale.  The  long-term  goal  should  be  to  transition  to  a  market-led 
deployment  strategy,  creating  a  secure  environment  for  private  investment  will  ensure  that  infrastructure 
development is sustainable without continuous public financial support70. This measure can be combined with 
measures targeting transparency around grid limitations and opportunities.  

impact 

Allowing independent connection providers the opportunity to carry out contestable works and push through 
grid connection requests is estimated to reduce delivery time by up to 2 months in the UK. The energy regulator 
in the UK encourages competition where it can improve access for customers connecting to the network and 
promote fairer prices and better service. 

In terms of cost, there will be a significant burden on DNOs initially, which may create resourcing issues in an 
area that is already strained. There is no statistical data on the impact of this package of measures as they 
are due to be implemented by summer 2025. However, the package of measures aims to expand collaboration 
between  the  energy  and  transport  sectors,  allowing  government  and  industry  to  deliver  over  70,000 
public EV charge points in the UK and over 680,000 domestic charge points in England aloneError! Bookmark not 
defined.. 

The  impact  of  the  measure  can  also  be  affected  by  the  supply-side.  Congestion  in  the  grid  has  serious 
implications  for  economies  and  societies  by  delaying  connections  to  the  electricity  network  and  therefore 
hindering important initiatives such as housing projects and industrial development. In the Netherlands, these 

69 Improving the grid connection process for electric vehicle charging infrastructure - GOV.UK 
70 EU faces challenges in implementing HDV charging network by 2030 | EVBoosters 

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disruptions have affected expansion plans, renewable energy project development, and the electrification of 
fleets and industrial processes.71 The risk of improving permitting times, procedures and connection with the 
grid  on  the  demand-side  means  that  attention  also  needs  to  be  put  simultaneously  onto  measures  for  the 
supply-side of energy into the grid to ensure there is enough capacity for future connections of ChargePoint’s. 

The Netherlands are reducing stress on their national grid through a number of measures including: 

•  Congestion  management:  Electricity  producers  or  consumers,  in  exchange  for  compensation, 
reduce the load on the grid by temporarily reducing feed-in or offtake during peak periods to create 
flexibility.  

•  Alternative contract forms: Grid users can be connecting with a contract that doesn’t provide 24/7 
transmission capacity. This allows more grid users to be connected. This is in collaboration with grid 
operators and the Netherlands Authority for Consumers and Markets (ACM). Rollout is in it’s  early 
phase. 

•  Rates: Adjustments to the tariff structure create financial incentives to off-peak times. 
•  Queues/ prioritisation: Grid users who cannot secure transmission capacity are placed on a waiting 
list. Initiatives are being developed to improve the design of these waiting lists, creating space and 
prioritising parties with high social value.72  

2.2.8.5  Scalability 

The mapping and clear administration procedures for connecting to the energy grid will benefit CPOs, however 
such transparency would also help other sectors, such as energy suppliers (citizens and other enterprises) 
with enabling fast connection to the grid.  

The  Netherlands  has  Grid  Management  capacity  maps,  which  are  continuously  expanded  based  on 
stakeholder feedback. A map layer from TenneT has been added, providing users with insight into congestion, 
queues,  and  available  capacity  at  higher  grid  levels.  This  also  clarifies  which  grid  level  is  experiencing 
congestion. Furthermore, all planned grid expansions per supply area have been added. This allows users to 
see where and when these expansions will take place. This can allow investors in ChargePoint’s to plan their 
future  investments  accordingly.  The  expected  completion  date  of  grid  expansions  in  a  specific  area  has 
recently been added to the maps. This provides an indication of when transmission capacity can be offered to 
customers again in a given supply area. 

Another product implemented by the Netherlands to increase transparency, include the LAN Dashboard. This 
dashboard provides quantitative insight into the realization of connections, queues, flexible contracts, and the 
realisation of low-voltage and medium-voltage cables and medium-voltage substations.73  

2.2.8.6  Replicability 

Harmonising  measures  should  be  achievable  in  some  format  across  all  MS.  Streamlining  administrative 
processes for grid connections, such as clear timelines for connection requests and streamlining connection 
application procedures would help secure market led investment for charging infrastructure.  

Practicalities around implementation of the measure 

2.2.8.7  Speed of implementation 

The process should be relatively quick; however, the structure of the energy market will affect outcomes and 
cooperation of DNOs, and Transmission System Operators (TSOs) is required. Nuances in certain MS and 
the capacity to take part in workshops to identify the best approaches for streamlining administrative processes 
may take time to arrange. 

2.2.9  Case Study: Eurovignette – Truck tolling in favour of ZE Heavy Duty Vehicles (HDVs). 

Overview of the measure 

71 Grid congestion is posing challenges for energy security and transitions – Analysis - IEA 
72 Tweede Voortgangsrapportage Landelijk Actieprogramma Netcongestie | Rapport | Rijksoverheid.nl 
73 Ibid. 

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2.2.9.1  Objectives and scope of the measure 

This measure reduces the kilometre-based toll for zero-emission (ZE) heavy-duty vehicles (HDVs) compared 
to those with internal combustion engines (ICEVs).  

The Eurovignette Directive provides the legal framework. Accordingly, a km-based toll can consist of various 
components.  The  infrastructure  charge,  a  charge  levied  for  the  purpose  of  recovering  the  construction, 
maintenance, operation and development costs related to infrastructure incurred, and the external-cost charge 
for CO2-emissions are relevant for this measure.  

The requirements from the Eurovignette Directive leave room for flexibility as to how strongly ZE HDVs are 
favoured in a kilometre-based truck toll.  

ZE HDVs can be exempted from tolls until 31 December 2025 74. After that, a discount of between 50% and 
75% can be applied to the infrastructure charge. With regard to the second relevant component, the external 
cost charge for CO2 emissions, there is flexibility in that up to twice the listed reference values of the external 
cost  charge  for  CO2  emissions  can  be  levied  (in  addition  to  the  CO2  based  variation  of  the  infrastructure 
charge).  Since ZEVs are  not subject to an external cost charge  for CO2  emissions, this increases the cost 
advantage of ZEVs over ICEVs.75  

The  targeted  stakeholders  are  operators  of  heavy  goods  vehicles.  Germany  is  currently  the  only  country 
maxing  out  the  possible  discount  for  ZEVs.  In  Germany,  the  toll  applies  to  all  commercial  vehicles  with  a 
technically permissible maximum laden mass (TPMLM) over 3.5 tonnes, on motorways and federal highways. 
The toll rates are differentiated based on the vehicle's weight, pollutant emissions, and, since December 2023, 
CO

 emissions.  

2.2.9.2  Geographic scope 

₂

A kilometre-based toll for heavy-duty vehicles has been introduced in a number of Member States 76 (AT, BE, 
CZ, DE, DK, EE, HU) and is planned in others (NL). Germany is currently the only Member State that has 
implemented the maximum possible discount for ZE-HDVs.  

2.2.9.3  Rationale, intervention logic and addressed barriers  

Both approaches, the CO2 component and the discount for ZEs, are aimed at reducing or offsetting the current 
Total Cost of Ownership (TCO) disadvantage of ZEVs compared to vehicles with internal combustion engines. 
The CO2 component ensures that external costs are internalised, making trucks with combustion engines more 
expensive to operate. The  (partial) exemption of ZEs  on the kilometre-based component ensures that they 
become cheaper. The greatest effect is achieved when both approaches are combined. As a result, ZEs, which 
are currently still more expensive to purchase, will become increasingly economical to operate up to a level 
that the total cost of ownership becomes lower than conventional vehicles.  

Impact of the measure 

2.2.9.4  Expected impacts 

For countries with an existing kilometre-based toll system, the CO2 component increases total revenue that 
can be reinvested in the decarbonisation of road transport. The rebate for electric vehicles, on the other hand, 
may reduce the total amount of toll collected as the proportion of these vehicles increases, if a Member States 
does not raise toll on conventional vehicles to compensate the loss in revenues.  

For operators of ZE-trucks, the discount compared to a EURO 6 (CO2 emission class 1, >18 t, 5 axles, toll rate 
34.8 €-ct/km)77 would result in cost savings of almost €35,000 in 2025 and over €26,000 thereafter, assuming 
100,000 km per year on German toll roads. As the toll only applies to motorways and trunk roads, the measure 
will affect long-distance journeys more than urban and regional transport.  

74 A Commission proposal of June 2025 aims at extending the optional exemption of ZE HDV from road charges until 2031. 
75 However, the maximum external-cost charge for CO2-emissions, which can be applied by Member States, will have to be limited by 1 
January 2027 through Delegated Acts, taking into account the (partial) internalisation of such external costs through ETS2 (Article 7cb(4) 
of  the  Eurovignette  Directive).  This  means  that  depending  on  the  effective  carbon  prices  resulting  from  ETS2,  little  or  no  leeway  for 
applying external-cost charges for CO2-emissions will be left for Member States. 
76 https://www.ecgassociation.eu/wp-content/uploads/2024/08/Eurovignette.pdf 
77 https://www.toll-collect.de/static/media/tc/informationen_tc/tarife_vergleichstabelle_2023_2024/mautsaetze_07_2024_vergleich_d.pdf 

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While ZE-truck operators will be relieved, operators of conventional trucks will face additional costs due to a 
high CO2 price component. These costs could be passed on to shippers through higher freight rates 78.  

2.2.9.5  Scalability 

The good practice focuses specifically on lorries. However, the measure could also be applied to other vehicle 
users  for  passenger  and  freight  transport  across  different  vehicle  categories.  In  the  Czech  Republic,  for 
example, there is a toll for M2 and M3 buses.  

2.2.9.6  Replicability 

The measure will likely have a greater impact in MS with more toll roads, and in MS with a large share of heavy 
long-distance road freight transport, transit traffic and port hinterland traffic. The tolls will be easier to implement 
in countries that already have distance-based tolling in place. Concessions in other countries also effect the 
replicability of new tolls.  

By March 2024, Member States had to vary vehicle tolls according to CO2 emissions. By 2026, 13 Member 
States are expected to have distance-based tolls and 4 Member States time-based tolls that vary according to 
CO2. This means that Member States accounting for 62% of the EU's transport activity measured in tonne-
kilometres will have an incentive to switch to zero emission vehicles (ZEVs).79 

Practicalities around implementation of the measure 

2.2.9.7  Speed of implementation 

For Member States that have already implemented a kilometre-based toll system, a stronger incentivisation of 
ZE trucks should be possible, and implemented comparatively easily with respect to Member States with no 
system in place. There should be significant additional major costs through new technical components or newly 
developed systems.  

For other member states, the introduction may involve considerable time and effort: A tolling mechanism takes 
1–3 years to implement, involving legal approvals, infrastructure development, and payment systems. Planning 
includes fee structures, enforcement, and technology integration.  

2.3  BUILDINGS 

This section presents the 7 best practice case studies developed to promote decarbonisation of the buildings 
sector. 

2.3.1  Case Study: Acting to reduce electricity prices for specific technologies (e.g. heat pumps) 

Overview of the measure 

2.3.1.1  Objectives and scope of the measure 

The reduction in heating costs by switching to heat pumps is often limited, e.g. due to high electricity costs in 
comparison with  fossil  fuel heating (called  the electricity-to-gas price ratio). This means that  the  high  initial 
investment  only  pays  for  itself  after  a  long  time.  This  is  one  of  the  main  barriers  to  the  acquisition  of  heat 
pumps. 80 

There are two main design options:  

•  Reduced  VAT  on  electricity  used  in  heat  pumps.  The  VAT-reduction  is  usually  applied  directly  by  the 
energy  supplier  on  the  bill,  reduced  energy  taxation:  The  Energy  Taxation  Directive,  whose  proposed 
revision under the European Green Deal is currently under discussion in the Council, leaves considerable 
flexibility  for  Member  States  to  design  their  energy  taxation  systems.  Any  MS  can  ask,  under  certain 

78 https://bmdv.bund.de/SharedDocs/DE/Anlage/G/MKS-Wissenschaftliche-Untersuchungen/studie-anteil-
transportkosten.pdf?__blob=publicationFile  
79 https://www.transportenvironment.org/uploads/files/202403_TE_Eurovignette_briefing_update.pdf  
80 KfW (2025): Heat pumps are gaining ground in Europe – electricity prices matter  
https://www.kfw.de/PDF/Download-Center/Konzernthemen/Research/PDF-Dokumente-Fokus-Volkswirtschaft/Fokus-englische-
Dateien/Fokus-2025-EN/Focus-No.-487-February-2025-Heat-pumps.pdf 

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conditions, the Council to authorise further exemptions or reductions of the rates of taxation for specific 
policy considerations, and 

•  Flexible Tariffs for heat pumps: Regulation & standards. 
Target stakeholders of the measure are building owners. 

2.3.1.2  Geographic scope 

Reduced VAT on electricity used in heat pumps applies in some MS, in combination with a reduced VAT on 
heat pumps (covered in section 2.3.7) or without combination.  

In combination with a reduced VAT on heat pumps in BE, GR, IE, IT, LU. 81   

o 
o  Not in combination with a reduced VAT on heat pumps: HR, MT, ES.82 

An example for reduced energy taxation comes from Finland: Council Implementing Decision (EU) 2022/1004 
of 17 June 2022 authorised Finland to apply a reduced rate of taxation to electricity supplied to certain heat 
pumps, electric boilers and recirculating water pumps, in accordance with Article 19 of Directive 2003/96/EC 
(OJ L 168, 27.6.2022, p. 84)83 

Time-of-Use  (ToU)  Tariffs  for  heat  pumps  are  for  example  available  in  Ireland84  and  Spain. 85  Historically, 
Germany  offered  time-of-use  tariffs  with  reduced  electricity  rates  during  off-peak  hours  at  night  to  promote 
heat pump adoption.  

2.3.1.3  Rationale, intervention logic and addressed barriers  

Reducing electricity prices allows consumers to achieve cost savings by reducing running costs of their new 
heating system (particularly relative to the old system which likely ran on gas). Reduced VAT on electricity and 
reduced energy taxation on electricity used by heat pumps (or potentially other technologies) directly reduces 
electricity prices, therefore resulting in cost savings which reduce the time needed to pay off the investment. 

The second option is to implement flexible electricity tariffs for the use in heat pumps. There are different types 
of flexible electricity tariffs, including dynamic tariffs and time-of-use tariffs. With dynamic tariffs the electricity 
price is based on the current exchange price, which can vary hourly or even by the minute. With time-of-day 
tariffs there are different prices for different times of day, e.g. a higher day-price and a lower night-price. 

Technical and regulatory requirements are necessary for the introduction of flexible tariffs. Legislation must 
allow variable tariffs. A technical prerequisite for the introduction of dynamic tariffs is the installation of smart 
meters, which record electricity consumption in real time and transmit the data to the supplier. In addition, the 
suppliers must be able to process this data and adjust the tariffs accordingly. For time-of-use tariffs, the building 
requires two meters, one for the heat pump and one for all other electricity consumption. The meter for the 
heat pump must be a dual-tariff electricity meter. The existence of variable tariffs is another prerequisite.  

The introduction of flexible electricity tariffs enables consumers to benefit from price fluctuations and optimize 
their electricity consumption. At the same time, suppliers can better manage the load on the grid and improve 
the integration of renewable energies. Owners of heat pumps are able to reduce energy costs by using cheaper 
off-peak electricity, often from renewables. This can be achieved, for example, by using low-cost electricity to 
heat  buffer  storage  tanks86.  In  addition,  through  their  smart  operation  heat  pumps  can  capture  value  in 
balancing generation and demand and in managing network congestion, especially on the distribution grid 87. 

This lowers both expenses and carbon emissions while helping to offset initial investment costs. Heat pump 
and electric heating system owners can maximise savings by increasing output when electricity is cheapest, 
providing  an  opportunity  for  cost  savings.  These  savings  should  reduce  the  payback  time  of  the  initial 
investment. Energy management Systems can also facilitate automatic adjustment of energy usage. These 

81 https://www.ehpa.org/news-and-resources/publications/vat-on-heat-pumps-and-electricity-in-europe/ 
82 Ibid. 
83 https://www.eumonitor.eu/9353000/1/j4nvhdfdk3hydzq_j9vvik7m1c3gyxp/vlt3gmeuhiuo 
84 https://www.electricireland.ie/residential/electricity-and-gas/heat-pump-price-plans 
85 https://evergreen-electrica.com/electricity-tariffs-spain?lang=en 
86 https://link.springer.com/article/10.1007/s12053-024-10206-z 
87 Smart heat pumps need to be “aware” of and, without user interference, respond to signals from the grid and/or a local PV system, 
allow for remote and/or automatic control and interact with home energy management systems and the grid via appropriate communication 
interfaces. This is why the Commission has launched a Code of Conduct for the interoperability of several smart appliances, including 
heat pumps, establishing the minimum information that needs to be exchanged 

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measures encourage consumers to shift energy usage to times when renewable energy supply is abundant 
and prices are lower, promoting grid stability and efficient energy use. In addition, they encourage uptake of 
renewable heating technologies by providing a mechanism for cost savings to pay off the initial investment.   

Starting  January  1,  2025,  all  electricity  providers  are  mandated  to  offer  dynamic  tariffs  reflecting  real-time 
market  prices,  enabling  consumers  to  optimise  energy  usage  and  costs,  according  to  the  Directive  (EU) 
2019/944 on common rules for the internal market for electricity. 

The full implementation of the Electricity Directive will already ensure availability of dynamic price contracts 
and  aggregation  services  to  enable  participation  of  heat  pumps  in  demand  response,  the  right  for  a  smart 
meter and the right to a separate supply contract for heat pumps. The reform of the electricity market design 
strengthens the role of flexibility services, demand response and energy storage in the electricity system. It 
requires Member States to assess the power system needs in terms of flexibility - be it hourly, daily, weekly or 
seasonal – and to establish indicative objectives for storage and demand response, making demand response 
and storage key non-fossil flexibility sources to enable the integration of higher levels of variable renewables. 
On  this  basis,  Member  States  can  introduce  new  support  schemes  in  the  form  of  capacity  payments  for 
flexibility sources such as demand response and storage. Importantly, the reform tackles the use of flexibility 
services by system operators, providing for further incentives to use flexibility services as an alternative and 
complement to grid development. 

2.3.1.4  Expected impacts 

Reduced  VAT  and  energy  taxation  rates  result  in  lower  tax  revenues,  representing  a  fiscal  investment  in 
promoting renewable energy adoption. While upfront costs remain, operational savings from dynamic tariffs 
and reduced VAT and energy taxes can improve the economic feasibility of renewable heating systems over 
time, in particular in conjunction with valorising flexibility. 

Countries with cheap electricity compared to gas have more heat pumps.88 Analysis proves that the electricity-
to-gas price ratio correlates with sale of heat pumps in Europe. A reliable and rising carbon price and abolishing 
the extent of natural gas subsidies that translate to a higher gas price will further improve the price-performance 
ratio between heat pumps and gas heating systems in favour of heat pumps.  Promotional instruments can 
further strengthen the sale of heat pumps, such as subsidies to the purchase price or reduced VAT rates, as 
well as technology promotion or installer training. 

Another  opportunity  to  reduce  the  cost  of  electricity  prices  for  heat  pumps  relates  to  the  installation  of  PV 
panels for self-consumption. Energy communities are included under the Renewable Energy Directive 89, and 
help  to  support  members  produce  and  share  their  own  energy  through  activities  such  as  renewable  self-
consumption. Other policies to promote the installation of PV panels help consumers to balance the additional 
cost of high  electricity prices with respect to gas  and promote cheap renewable electricity consumption  for 
heat pumps.  

2.3.1.5  Scalability 

Reduced VAT and energy taxation on electricity used by heat pumps should be easily scalable. 

Dynamic  tariffs  can  be  scaled  across  different  Member  States,  provided  there  is  investment  in  necessary 
infrastructure like smart meters and supportive policy environments. The scalability depends on the readiness 
of energy markets to handle dynamic pricing models and the capacity of consumers to adapt to new pricing 
structures. 

The spread of smart meters varies across Europe. Spain, for example, was the first country in the EU to reach 
full smart meter deployment, achieving 100% coverage as early as 2018 following a government mandate. 
Sweden has also completed its initial rollout and is now upgrading its infrastructure—275,000 smart meters 
are set to be replaced with newer models by the end of 2024, as required by national legislation. Finland is 
preparing a similar upgrade to adopt more advanced devices. In Germany, on the other hand, the rollout of 

88 KfW (2025): Heat pumps are gaining ground in Europe – electricity prices matter  
https://www.kfw.de/PDF/Download-Center/Konzernthemen/Research/PDF-Dokumente-Fokus-Volkswirtschaft/Fokus-englische-
Dateien/Fokus-2025-EN/Focus-No.-487-February-2025-Heat-pumps.pdf 
89 Directive - EU - 2023/2413 - EN - Renewable Energy Directive - EUR-Lex 

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smart meters has been slow: by the end of 2022, only around 500,000 devices had been installed—just 1.2% 
of the country’s 41 million households.90 

As  smart  meter  adoption  expands,  the  implementation  of  dynamic  electricity  pricing  becomes  increasingly 
viable.  The  EU  directive  on  "Dynamic  electricity  price  contracts"  (Directive  2024/1711/EC 91)  mandates  that 
Member  States  incorporate  dynamic  pricing  models  into  national  legislation  by  2025.  Spain  and  Italy  are 
already  ahead  in  this  regard—Spain,  for  instance,  has  time-of-use  (TOU)  tariffs  as  the  default  option,  with 
nearly 40% of households using them. In Spain heat pump electricity tariffs often provide reduced rates during 
colder  months  to  support  energy-efficient  heating.92  In  Scandinavia,  despite  the  widespread  availability  of 
smart meters, the energy market is shaped by seasonal variability. As a result, pricing is typically based on 
monthly variable tariffs. In Germany, only limited options currently exist, but by 2025, all electricity providers 
will be required to offer both variable and dynamic pricing models. Additionally, time-off-use-based grid tariffs 
are also set to be introduced in some countries.93 

2.3.1.6  Replicability 

Other  countries  can  adopt  VAT  reductions  and  request  approval  of  reduced  rates  of  taxation  to  electricity 
supplied to efficient heat pumps in accordance with Article 19 of Directive 2003/96/EC. 

Dynamic Tariffs can be adopted as long as the Member States meet the technical requirements, e.g. smart 
meters,  tailoring  them  to  local  market  conditions  and  regulatory  frameworks.  The  success  of  replicating 
dynamic tariffs depends on the existing technological infrastructure and the ability to deploy smart metering 
solutions. 

Countries still heavily reliant on gas or oil heating could implement similar mandates to accelerate the transition 
to renewables. However, the pace of implementation would depend on whether affordable alternative heating 
systems  (heat  pumps,  district  heating)  are  readily  available  to  be  installed,  which  may  not  be  the  case  in 
countries where there is significant skills scarcity. In countries with weaker regulatory enforcement, it may be 
difficult to enforce compliance. 

2.3.1.7  Speed of implementation 

Implementing reduced VAT-rates must be regulated by national legislation; MS can request reduced rates of 
taxation to electricity supplied to efficient heat pumps in accordance with Article 19 of Directive 2003/96/EC.  
Once  implemented,  reduced  VAT  and  energy  taxation  rates  can  provide  immediate  financial  relief  to 
consumers investing in renewable heating systems. 

Implementing  dynamic  tariffs  requires  time  for  regulatory  changes,  infrastructure  upgrades,  and  consumer 
education.  

2.3.2  Case Study: On-bill financing 

Overview of the measure 

2.3.2.1  Objectives and scope of the measure 

On-bill financing is a mechanism designed to support energy efficiency renovations in buildings by enabling 
homeowners  or  tenants  to  repay  renovation  costs  through  their  regular  energy  bills.  The  recast  EPBD 
encourages the development of such schemes 94. A utility or private investor supplies capital to fund energy 
efficiency  (and/or  renewable  energy)  measures  in  buildings,  which  is  repaid  by  the  owner  or  tenant  of  the 

90 https://navitasoft.com/en/news/new-dynamic-energy-pricing-flexible-electricity-tariffs 
91 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202401711 
92 https://evergreen-electrica.com/electricity-tariffs-spain?lang=en 
93 https://navitasoft.com/en/news/new-dynamic-energy-pricing-flexible-electricity-tariffs 
94 Article 17(7): 7.To support the mobilisation of investments, Member States shall promote the effective development and use of enabling 
funding and financial tools, such as energy efficiency loans and mortgages for building renovation, energy performance contracting, pay-
as-you-save financial schemes, fiscal incentives, for example reduced tax rates on renovation works and materials, on-tax schemes, on-
bill  schemes,  guarantee funds,  funds  targeting  deep  renovations, funds  targeting  renovations  with  a  significant  minimum  threshold  of 
targeted energy savings and mortgage portfolio standards. They shall guide investments into an energy-efficient public building stock, in 
There are two main design types: on-bill loans, where the customer is the borrower, and on-bill tariffs, where the debt is tied to the meter 
or property, not the individual. In on-bill tariff models, repayment obligations transfer to the next occupant if the property is sold or rented, 
making long-term investments more appealing. Utilities or third parties (banks, public funds) may act as the lender; utilities typically collect 
the  repayments via their  billing systems.line  with Eurostat  guidance  on  the  recording  of  energy  performance contracts in  government 
accounts. 

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building through regular payments on an existing utility bill. This financial mechanism spreads the repayment 
over time and avoids the need for upfront payments. The energy savings achieved from the renovation offset 
part or all of the repayment costs, so ideally, the user’s total monthly costs remain stable or even decrease.  

Design types can be grouped in two categories 95: On-Bill Financing (OBF), funded directly by utilities, and On-
Bill Repayment (OBR), which involves third-party financial institutions. Other design features include On-Bill 
loans, where the customer is the borrower and On-Bill tariffs, where the debt is tied to the meter or property, 
not the individual. In on-bill tariff models, repayment obligations transfer to the next occupant if the property is 
sold or rented, making long-term investments more appealing. Utilities or third parties (banks, public funds) 
may act as the lender; utilities typically collect the repayments via their billing systems. There is a need for an 
adaptive scheme design tailored to the regulatory context and the specific characteristics of the specific country 
and the target groups. 

Figure: Basis sketch of an on-bill scheme [taken unchanged from Bianco & Sonvilla 2021, p. 4.301] 

2.3.2.2  Geographic scope 

There  are several cases of on-bill financing across EU Member  States,  including FR, IT, NL,  ES, LT (pilot 
phases). An expansion of these cases is included in the following sub-sections. 

2.3.2.3  Rationale, intervention logic and addressed barriers  

This measure avoids high upfront costs and reduces the impact of long payback periods, because repayments 
are made through the existing energy bill and are typically covered by the savings achieved. Additionally, tying 
the loan to the property rather than the individual addresses concerns about long payback periods, making 
renovations more appealing even if the homeowner plans to move. 96 97 

Successful examples of on-bill financing models come primarily from the USA. One example is ‘pay as you 
save (PAYS®)’, which is available in various federal states. This corresponds to the classic design of on-bill 
financing:  the  energy  supplier  finances  efficiency  measures  (e.g.  thermal  insulation,  heat  pumps,  energy 
efficiency  measures)  and  the  repayment  is  made  via  the  monthly  gas  or  electricity  bill.  The  payments  are 
structured in such a way that they do not exceed the energy costs saved. The repayment obligation is linked 
to the meter, not to the person.98 

There are few examples from Member States: 

Energie Sprong (NL) 

Energie Sprong is an initiative under which energy renovations are carried out, such that a home produces as 
much energy as it consumes. Prefabricated materials are used, allowing the renovations to be delivered at 
pace, with full renovations possible in less than ten days. The initiative began in the Netherlands but has since 
expanded to other countries, including France, Italy, and the United Kingdom. On-bill financing was a central 
element in the original conception of the model, particularly in the Netherlands, approximately between 2012 
and 2017. Renovations used to be funded by the money saved over the following 30 years of energy bills, with 

95 https://doi.org/10.1016/j.egyr.2021.07.011  
96 https://energiesprong.org/  
97 https://build-up.ec.europa.eu/en/resources-and-tools/articles/eu-initiatives-financing-building-renovation 
98 https://www.cleanenergyworks.org/programs/pays/ 

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recipients paying a monthly fee equivalent to the difference between their previous and current energy bills. 
This meant that the measures were effectively implemented at zero cost to the consumer, as the payments 
were  compensated  by  the  energy  savings.  However,  Energie  Sprong  currently  no  longer  utilises  on-bill 
financing – e.g. no direct repayment of refurbishment costs via the supplier's energy bill. Today, the financing 
approach has evolved, particularly in  the  direction  of  bundling  investments and  long-term rental or  building 
contracts.99  

Sunshine-Project (LV) 

In the “Sunshine Project”, on-bill financing was successfully implemented in Latvia in combination with energy-
performance  contracting.  Energy  performance  contracting  (EPC)  represents  a  financing  mechanism  for 
capital-intensive  energy  efficiency  measures.  It  enables  the  realisation  of  energy  upgrades  without  upfront 
investment by financing the improvements through the cost savings they generate. Within an EPC framework, 
an  external  service  provider  -  commonly  referred  to  as  an  Energy  Service  Company  (ESCO)  -  plans, 
implements,  and  monitors  energy  efficiency  or  renewable  energy  projects.  The  ESCO’s  remuneration  is 
directly linked to the achieved performance: repayment occurs through the verified energy cost savings. This 
performance-based structure means that the  ESCO only receives full payment  if the projected savings are 
actually realised. 

The Sunshine-project was a Horizon2020 funded project running from 1 March 2015 to 1 March 2018. The 
project was built upon an existing programme that is aimed at the deep retrofit of Multifamily Buildings (MFB) 
in Latvia.  

Under the existing scheme, a private ESCO, called RenEsco, has renovated 15 typical soviet era apartment 
buildings using EPC. These buildings were old, overcrowded and of poor quality. They were typically heated 
through district heating. The focus of the investment was the building envelope, heat distribution pipes, heat 
control and energy management. RenEsco’s business model used EPC as a tool for renovating the buildings, 
in combination with on-bill financing, i.e. the homeowner continues to pay the same amount, while the ESCO 
recovers the amount saved through the House Maintenance Company. EPC contracts are typically signed for 
20 years. The homeowners got a modernized apartment, with an increased value by about 20% – 30% right 
after renovation and an extended lifetime of the building by 30 years. 

Financing  to  RenEsco  was  provided  by  local  commercial  banks  (60%)  in  combination  with  a  third  party 
guaranteed loan (40%) from the Dutch Housing Institute (guaranteed by the Dutch Housing Corporation) based 
on project cash flows. No other collateral was foreseen. Homeowners had an extraordinary payment discipline, 
with 97% of payments on time and 0% non-payment within 6 years after the renovations.Error! Bookmark not defined. 
More recent figures are not available. 

One of the challenges of the scheme was that the balance sheets of the ESCOs became increasingly burdened 
as the number of projects grew. This situation led to the establishment of the Sunshine project, under which a 
forfaiting fund - the Latvian Building Energy Efficiency Fund (LABEEF) - was createdError! Bookmark not defined.. In 
this context, a forfaiting agreement for energy efficiency projects, such as energy performance contracting, 
allowed an ESCO to assign its future repayment claims (based on verified energy savings) to a bank or a fund. 
This arrangement provided the ESCO with immediate liquidity, eliminating the need to wait 10 to 20 years for 
full repayment.100 After demonstrating the achieved energy savings - typically within one to two years - the 
forfaiting fund purchased the remaining receivables from the ESCO. This mechanism enabled the ESCO to 
free up its balance sheet and secure new loans, thereby facilitating the implementation of further projects. The 
forfaiting  scheme  thus  played  a  crucial  role  in  scaling  up  investment  in  building  energy  efficiency 
renovations.101  

Ren-on-Bill-Project (ES, IT, DE, LT) 

The  EU-funded  “Ren-on-Bill”  project  aimed  to  scale  up  investments  towards  deep  energy  renovations  of 
residential  buildings,  while  promoting  the  development  and  implementation  of  on-bill  schemes  based  on 
cooperation  with  the  financial  institutions  accepting  repayment  by  drawing  on  utility  bills.  This  method, 
successfully adopted in Canada and the United States, is expected to significantly lower default of payment 
rates and bring several benefits to the European building energy renovation market and its society. 

99 https://www.energiesprong.de   
100 Forfaitierung • Definition | Gabler Wirtschaftslexikon 
101 http://citynvest.eu/?q=content/sunshine-3; http://citynvest.eu/sites/default/files/library-documents/Model%2020_SUNShINE_final.pdf 

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According to the project’s official website, RenOnBill aims to scale up investments in deep energy renovations 
of residential buildings by promoting the development and implementation of On-Bill Schemes (OBS). These 
financing models are based on close cooperation between energy utilities and financial institutions. 

Specifically, the project seeks to: 

•  Analyse  and  define  the  residential  building  market  context  in  order  to  enable  the  replication  of 

suitable OBS across Europe; 

•  Engage key stakeholders through the establishment of national stakeholder platforms; 
•  Develop tools to address the financing demand in the residential renovation sector and provide a 

transparent methodology for assessing and bundling investments; 

•  Design and implement business models within three partner utilities by piloting On-Bill schemes; 
•  Leverage and disseminate key insights and outcomes to strengthen the EU-wide knowledge base 

on OBS and support policy development. 

These objectives are structured around five strategic pillars, which collectively define the RenOnBill project 
methodology. The initiative is being implemented in four focus countries: Germany, Italy, Lithuania, and Spain 
- selected for their diverse regulatory and market conditions, allowing for comparative analysis and assessment 
of replication potential in various EU contexts. 102 In 2022 a “European on-bill building renovation roadmap” 
was  published  within  the  project103,  describing  barriers  and  solutions  for  the  uptake  –  see  there  for  further 
explanation.  

Impact of the measure 

2.3.2.4  Expected impacts, Scalability, Replicability 

On-bill financing is increasingly seen as an effective instrument for promoting energy efficiency measures in 
Europe. However, the activities and projects described show that on-bill schemes are not easy to implement. 
In  theory,  these  approaches  represent  an  interesting  method  of  overcoming  financial  barriers  to  energy-
efficient  refurbishment  -  so  far  it  has  mainly  been  implemented  on  a  pilot  scale.  On-bill  financing  can,  and 
should, be combined with grants or subsidies to further reduce costs and encourage comprehensive energy 
efficiency  improvements.  Further  efforts  and  regional  adaptations  of  the  concept  are  needed  to  implement 
them successfully. In general, on-bill schemes are applicable to both residential and commercial properties, 
facilitating widespread adoption of energy efficiency measures. 

There is political support at EU level through the European Energy Efficiency Financing Coalition. 104 It is not 
known if on-bill schemes materialised after the ren-on-bill-project on a national level.   

Successful  implementation  and  replicability  depend  on  whether  financing  can  be  sourced.  It  also  requires 
participation of energy companies, so a regulatory environment that supports this is necessary. 

Practicalities around implementation of the measure 

2.3.2.5  Speed of implementation 

 Despite great efforts, so far no Member State in Europe has got beyond the pilot scale. Further support is 
needed to successfully introduce on-bill schemes on a large scale. 

2.3.3  Case Study: Information about heat pumps and tools  

Overview of the measure 

2.3.3.1  Objectives and scope of the measure 

A  lack  of  knowledge  and  misinformation  about  heat  pumps,  their  efficiency  and  the  suitability  of  the  own 
building for the use of heat pumps is hampering the roll out of heat pumps 105.  

102 https://www.renonbill.eu  
103 https://www.bpie.eu/publication/european-on-bill-building-renovation-roadmap/ 
104 https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:C_202301553  
105 Expert interviews and webinar. 

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Information  campaigns  and  tools  to  assess  the  suitability  of  heat  pumps  for  your  own  building,  possibly  in 
combination with subsidies and reduced electricity prices, help to accelerate the roll-out of heat pumps.   

2.3.3.2  Geographic scope 

Several EU member states have launched targeted information campaigns in recent years to improve building 
owners' knowledge of  heat pumps and thus increase  the acceptance of  this technology. These campaigns 
pursue  various  communication  strategies  -  from  online  videos  and  print  materials  to  events  and  advisory 
services - and aim to raise awareness of the technical, ecological and economic benefits of heat pumps. 

In Germany, the Federal  Environment  Agency's information  portal “So geht's mit Wärmepumpen!” (“This is 
how heat pumps work!”) presents best practices from existing buildings.106 The nationwide campaign week 
“Heat Pump Week” in November 2024 was financed by the Ministry of Energy and Climate, organised by the 
German Energy Agency (dena), and implemented by an alliance of around 30 local and regional energy and 
climate agencies and institutions. All information material is still presented on a website directly.107 Luxembourg 
is also showing how targeted education can work with a campaign by Climate Agence. In collaboration with 
the Ministry of Energy and the nature parks, a video series on “15 myths and facts about heat pumps” was 
produced to specifically address preconceptions. 108 AFPAC, the national trade association for heat pumps in 
France, provides target group-specific guides for home and building owners.109 The French government is also 
supporting the spread of this technology with a combination of financial incentives and information campaigns. 
The Italian consumer organization Altroconsumo has launched a campaign to organize collective orders for 
air-to-water heat pumps. As part of this initiative, workshops are also being offered to inform consumers about 
the technology  and  its benefits.110 Poland relies on civil society initiatives such as  the “Polish Smog Alert”, 
which  organizes  information  campaigns  to  improve  air  quality  and  promote  heat  pumps. 111  In  addition,  the 
PORT PC organization regularly publishes studies and information materials that are intended to make the 
market more transparent and impart knowledge.112 Heat pumps are already widely used in Sweden, not least 
thanks  to  the  Swedish  Energy  Agency's  ongoing  energy  advice  program.  In  addition,  national  information 
events and conferences are held regularly, which appeal to both experts and the general public. 113 114 115 

These examples show that a wide range of measures have been established throughout Europe to provide 
building owners with factual, accessible and widespread information about the use of heat pumps and thus 
pave the way for their rollout. 

Table 2-2 provides an overview about the mentioned examples. 

Table 2-2 Examples of information campaigns and tools 

Country 

Existing Information Materials 

Capacity Building Events / Workshops 

Germany 

So 
geht’s  mit  Wärmepumpen! 
information portal hosted by the Federal 
Environment Agency: UBA Portal116 

“Heat Pump Week” (November 2024), organised 
by  the  German  Energy  Agency  (dena)  and  a 
coalition of local/regional energy agencies.117 

Luxembourg 

Video  series  “15  myths  and  facts  about 
heat  pumps”  produced  by  Climate 
Agence118  

Educational  campaign  in  collaboration  with  the 
Ministry of Energy and nature parks.119 

106 UBA-Infoportal “So geht’s mit Wärmepumpen!” | Umweltbundesamt 
107 Woche der Wärmepumpe | 4.-10. Nov 
108 15 Mythen und Fakten über Wärmepumpen | Klima-Agence 
109 France – European Heat Pump Association 
110 Collective purchase of air-to-water heat pumps gets underway in Italy | BEUC 
111 Challenging public perceptions and reforming government programmes in Poland - Clean Air Fund 
112 Poland Electric Power 
113 Swedish Energy Agency 
114 Heat pump conference in Stockholm | NIBE 
115 2023-05-26-heat-pumps-in-sweden-carlos-lopes.pdf 
116 UBA-Infoportal “So geht’s mit Wärmepumpen!” | Umweltbundesamt 
117 Woche der Wärmepumpe | 4.-10. Nov 
118 15 Mythen und Fakten über Wärmepumpen | Klima-Agence 
119 Ibid. 

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Country 

Existing Information Materials 

Capacity Building Events / Workshops 

France 

Italy 

Poland 

Sweden 

guides 

homeowners 
Targeted 
provided  by  AFPAC  (French  heat  pump 
industry association) 120  

for 

purchasing 
Altroconsumo 
campaign for air-to-water heat pumps. 122 

collective 

Government-supported  information  campaigns 
and  outreach  activities  to  promote  heat  pump 
adoption.121 

Consumer information workshops conducted as 
part  of  the  campaign  to  raise  awareness  and 
explain benefits of the technology.123 

Public  resources  and  studies  published 
by PORT PC and civil society campaigns 
by Polish Smog Alert.124 

Local  information  campaigns  and  knowledge 
resources; PORT PC provides technical studies 
and market transparency tools.125 

advice 

Energy 
and 
programmes  by  the  Swedish  Energy 
Agency126 

materials 

National-level  information  events  and  recurring 
conferences  for  both  experts  and  the  public.127 
128 

2.3.3.3  Rationale, intervention logic and addressed barriers 

Information campaigns can dispel myths about inadequacy of heat pumps, especially in cold weather.129 In 
addition to general information on the operation, costs and environmental impact of heat pumps, collections of 
best practices can also have a motivating effect on building owners. Important information also concerns the 
suitability of buildings for the use of heat pumps, and the required characteristics of the building and the heating 
system. Owners are often unclear about this. 

The suitability of a building for the use of heat pumps is determined by the energy status and the requirements 
of the heat distribution and delivery system. Although optimised thermal insulation helps to increase efficiency, 
it is not a necessary condition for the efficient operation of heat pumps 130. As Fraunhofer ISE has demonstrated 
in practical tests, even partially renovated old buildings can be heated efficiently using heat pumps 131. 

Heat  pumps work optimally in combination with  low-temperature  heating systems (e.g.  underfloor heating), 
which operate efficiently with flow temperatures (VLT) of 35 to 45 °C 132. Lowering the system temperatures 
leads to a significant increase in efficiency in heat pump operation. However, current scientific studies show 
that  conventional  radiators  can  also  be  utilised,  provided  they  are  sufficiently  dimensioned133;134.  Heating 
systems in existing buildings are often over dimensioned, which opens up the possibility of operating them 
with lower flow temperatures or only replacing individual radiators 135. This also opens the potential for existing 
buildings to integrate a heat pump without extensive changes to the heating system. Additionally, heat pumps 
can be installed in combination with solar thermal systems, photovoltaics, solar hybrids, geothermal energy, 
and energy storage, which can help reduce running costs and generate savings. Combining heat pumps with 
these systems may significantly shorten the payback period of the investment. 

120 France – European Heat Pump Association 
121 Ibid. 
122 Collective purchase of air-to-water heat pumps gets underway in Italy | BEUC 
123 Ibid. 
124 Poland Electric Power; 
125 Ibid. 
126 Swedish Energy Agency 
127 Heat pump conference in Stockholm | NIBE 
128 2023-05-26-heat-pumps-in-sweden-carlos-lopes.pdf 
129 https://www.motiva.fi/en/home_and_household/energy_advice_for_consumers 
130 (PDF) Durchbruch für die Wärmepumpe: Praxisoptionen für eine effiziente Wärmewende im Gebäudebestand 
131 
Schlussbericht.pdf 
132 
https://www.researchgate.net/publication/369030083_Durchbruch_fur_die_Warmepumpe_Praxisoptionen_fur_eine_effiziente_Warmew
ende_im_Gebaudebestand 
133 https://www.dena.de/fileadmin/dena/Publikationen/PDFs/2023/Analyse_Waermepumpen_im_Gebaeudesektor.pdf 
134 https://www.umweltbundesamt.de/publikationen/waermepumpensysteme-in-bestandsgebaeuden 
135 https://www.hamburg.de/resource/blob/161582/c9614a3e048a8760bd051ecc9900337a/heizenergie-effizienter-nutzen-data.pdf 

https://www.ise.fraunhofer.de/content/dam/ise/de/downloads/pdf/Forschungsprojekte/BMWi-03ET1272A-WPsmart_im_Bestand-

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In times of skills shortages, tools can help building owners to check the suitability of their buildings for a heat 
pump. An online web tool that provides information about heat pumps could help homeowners find out if their 
property is suitable for a heat pump, and if so, which type. In Germany, for example, the Federal Environment 
Agency is currently developing an online consultation tool for technical laypersons in a project entitled ‘Heat 
pump project database and low-temperature readiness standard’ to check the suitability of a building for a heat 
pump 136. Such a tool makes it easier to bridge the gap between people who are interested in installing a heat 
pump and people who install them. By making it easy to find out which heat pump is suitable, people are more 
likely to be satisfied with the heat pump they have installed, which should improve the reputation of heat pumps. 
In addition, the installation industry is educating installers on how to advise consumers about installing a heat 
pump if their gas boiler breaks down. 

Also, instructions and YouTube videos on how to set the flow temperature independently are already available. 
These are offered by various stakeholders, including heat pump manufacturers and installers. Although there 
are  no  systematic  evaluations  of  the  use  of  these  offers,  there  appears  to  be  interest.  For  the  majority  of 
building owners, simplified tools can provide an initial assessment of heat pump suitability. 

The barriers addressed are poor reputation and poor information about heat pumps amongst building owners. 

Impact of the measure 

2.3.3.4  Expected impacts 

Figures on the impact, the costs and benefits of information measures and tools are not known. Information 
material, campaigns and tools usually accompany other instruments, such as financial support. This makes it 
even  more  difficult  to  determine  the  impact  of  individual  information  instruments.  The  costs  of  individual 
campaigns are also not published. 

The German nationwide “Heat Pump Week” in November 2024 (see Table  2-1) featured around 200 public 
events in which approximately 50,000 individuals participated. 137 There is nothing published about the costs.  

Deeper  research  on  the  impact  of  the  heat  pump  campaign  of  the  French  heat  pump  industry  association 
(AFPAC) did not allow to gather any numbers about its impact.      

Campaigns  and  tools  are  either  publicly  funded  or  funded  by  heat  pump  associations.  Free  access  to 
information  lowers  the  barrier  for  homeowners  considering  heat  pumps,  allowing  them  to  find  information 
without paying for an audit. Public funding is good for independent advice, but associations can also provide 
valuable information and tools. 

2.3.3.5  Scalability 

Information dissemination is easily scalable to reach a wider range of stakeholders, through digital platforms, 
workshops,  and  collaborations  with  local  governments.  Some  of  the  mentioned  examples  might  already 
address services and industry, and not only the residential sector. 

2.3.3.6  Replicability 

and 

pumps 

Similar information dissemination strategies can be adopted by other countries aiming to promote adoption of 
heat 
technologies. 
These  measures  will  likely  be  most  impactful  in  countries  with  high  levels  of  heating  demand. 
Content will need to be adapted to align with local needs, based on style of communication, languages, and 
the characteristics of the building stock. Member States can get ideas and suggestions for further campaigns 
and tools from other countries. 

renewable-based 

renewable-ready 

heating 

other 

or 

Practicalities around implementation of the measure 

2.3.3.7  Speed of implementation 

Awareness campaigns and tools typically require between a few months and up to a year from initial design 
to public launch. In cases where new funding decisions, government coordination, and complex digital tools 
are provided, the process can require more time. Planning includes content development, outreach strategies, 

https://www.umweltbundesamt.de/themen/klima-energie/erneuerbare-energien/umgebungswaerme-waermepumpen/so-gehts-

136 
waermepumpen/ueber-das-portal-so-gehts-waermepumpen#Einsatzm%C3%B6glichkeiten 
137 https://www.dena.de/infocenter/woche-der-waermepumpe-lockte-zahlreiche-besucherinnen-und-besucher-an/  

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and  expert  engagement.  Previous  experiences  with  similar  schemes  may  reduce  the  time  needed  for 
implementation. 

2.3.4  Case Study: State guaranteed and interest-free loans for energy efficiency measures 

Overview of the measure 

2.3.4.1  Objectives and scope of the measure 

Guaranteed and interest-free loans are financial instruments designed to support households and businesses 
in  investing  in  energy  efficiency  measures.  By  reducing  or  eliminating  borrowing  costs  and  providing  a 
guarantee  against  default,  these  loans  lower  the  financial  barriers  to  implementing  upgrades  such  as 
insulation, heat pumps, or renewable heating systems. They aim to accelerate the adoption of energy-saving 
technologies while making energy efficiency investments more accessible and affordable. 

In  Slovenia  there  is  a  “state  guaranteed  loan  scheme”  that  targets  to  enable  apartment  owners  in  multi-
apartment  buildings  who  do  not  have  sufficient  funds  to  finance  investments  for  implementation  of  energy 
efficiency measures to take out a loan at a commercial bank secured with a state guarantee. 138 

In  Belgium,  Brussels  capital  region,  the  ECORENO  programme  used  to  provide  “interest-free  loans”  to 
households to finance energy efficiency improvements. According to the entry in the Odysee-Mure Database 
the  programme  started  in  2007  with  mortgage-style  loans  with  interest  rates  of  0%.  There  was  also  a 
consumer-type loan with interest rates of 0% or 1%, depending on income and project type. Since than the 
conditions  have  been  changed  several  times.  In  February  2023  the  interest  rates  for  mortgage-style  loans 
increased to 1.5%–2.5%, depending on the income139 whilst the consumer-type ECORENO loan still offered 
rates of 0% - 1% 140. In May 2023 the rates for the consumer loan increased to 1,5 to 2,5%, too 141. In July 2025 
the programme temporarily stopped to accept applications 142. 

The  ECORENO  loan  (both  the  mortgage-style  and  consumer-type  versions)  is  issued  by  the  Fonds  du 
Logement de la Région de Bruxelles-Capitale (also known as the Woningfonds Brussel), a cooperative with a 
social mandate using primarily public budget of the Brussels-Capital Region, supplemented by EU funding and 
other public contributions.143 It directly offers both types of loans as part of the region’s housing and renovation 
program Renolution.  

The programme covered works such as insulation, ventilation, and high-performance heating systems. The 
goal was to promote energy efficiency while addressing the financial barriers faced by low-income households. 
Personalised  assistance  was  provided  to  ensure  the  successful  application  of  funds,  and  the  measure 
complemented regional goals under the Air-Climate-Energy Plan. The provision of interest-free loans meant 
that long payback periods were less of an issue for two reasons. Firstly, the total costs to be borne were lower, 
as only the investments and no interest had to be paid, and secondly, the fact that the loans were interest-free 
ensures that the monthly costs for the household did not increase over time, as the interest rate did not have 
to be renegotiated at the end of the commitment period.144  

Although today this measure has been converted into a ‘building renovation subsidy’ (see chapter 2.3.6), it 
remains an example for an “interest-free loan”. Availability of these kind of loans improves financial feasibility, 
allowing homeowners to benefit from lower energy bills without upfront costs, as well as making the total cost 
known from the start.  

2.3.4.2  Geographic scope 

These  measures  are  described  only  for  Slovenia  and  Brussels.  However,  the  implementation  is  further 
widespread such as in France.145 Furthermore, in 2015 the European Investment Bank (EIB) and the European 
Commission  implemented  similar  support  schemes,  through  the  Private  Finance  for  Energy  Efficiency 

138 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/964 
139 ECORENO Credit | Fonds du logement Bruxelles 
140 https://fonds.brussels/fr/a-propos/communiques-de-presse/le-fonds-du-logement-augmente-les-taux-de-son-credit-ecoreno 
141 https://www.brusselstimes.com/belgium/485885/housing-fund-restricts-conditions-of-access-to-its-mortgage-loans 
142 https://www.bruxelles-j.be/actus/suspension-credits-fonds-logement-bruxelles-2025 
143 https://fonds.brussels/sites/default/files/2022-09/2022_09_06%20CONTRAT%20DE%20GESTION.pdf 
144 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/425  

145 Éco-prêt à taux zéro (éco-PTZ) | Service-Public.fr 

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(PF4EE). The PF4EE provided additional resources to stimulate energy efficiency investment in countries such 
as Belgium, Cyprus, Czechia, Croatia, France, Greece, Ireland, Italy, Latvia and Portugal.146 

2.3.4.3  Rationale, intervention logic and addressed barriers  

Government guarantees reduce the perceived risk for lenders and make loans more accessible to households 
with lower budgets or older homeowners who would otherwise not qualify. They also reduce interest rates. 

Due to the lower financial hurdles, more homeowners are likely to undertake energy efficiency renovations. 147 
The same is true for interest-free loans.  

Impact of the measure 

2.3.4.4  Expected impacts 

The Slovenian measure “state guaranteed loan scheme” focuses on apartment owners in multi-apartment 
buildings,  addressing  a  specific  segment  of  the  housing  sector.  A  significant  portion  (23%)  of  Slovenia’s 
housing stock comprises multi-apartment buildings, many requiring energy efficiency upgrades. Slovenia has 
an aging building stock, with the majority of buildings constructed prior to 1980. 

The  government  allocates  funds  to  back  loans,  covering  potential  defaults  and  encouraging  lender 
participation.  State  guarantees  often  lead  to  lower  interest  rates,  decreasing  the  financial  burden  on 
homeowners. Ensuring that programs are accessible to all eligible homeowners, regardless of income or credit 
history, promotes social equity. 

The measure should be combined with subsidies or tax incentives, to guide users on how to maximise financial 
benefits from energy efficiency measures. Coupling financial support with targeted information campaigns can 
enhance awareness and uptake among older populations. Providing guidance on selecting appropriate energy 
efficiency measures ensures effective use of funds. 

The  former  Brussels  measure  “interest-free  loans”  focused  on  owners  and  future  owners  of  residential 
properties. Since August 2022, the housing fund has granted 1,500 Ecoreno loans to help households renovate 
their  homes;  40%  of  the  loans  went  to  households  with  low  income 148. The  number  of  interest-free  loans 
granted could not be determined. However, ECORENO might be recognised as particularly useful for lower-
income households that may not otherwise afford energy renovations.  

2.3.4.5  Scalability 

These measures are highly scalable, as they can be adapted to different levels of funding, different types of 
properties  (e.g.  rental  buildings)  or  integrate  additional  incentives  to  increase  impact  and  reach  more 
stakeholders.  Interest-free  loans  for  low-income  households  can  be  used  to  incentivise  energy  efficiency 
investments, provided that sufficient funds are available. 

2.3.4.6  Replicability 

The concept of state-guaranteed loans for energy efficiency is adaptable to various countries and regions. 

Interest-free loans for low-income households can be replicated in urban areas with high renovation needs 
and low renovation rates due to financial concerns. Ideal for regions with aging housing stock and low-income 
homeowners who struggle with financing renovations.  

Practicalities around implementation of the measure 

2.3.4.7  Speed of implementation 

Implementing  a  government-backed  loan  scheme  takes  1–3  years,  covering  policy  design,  financial 
partnerships, borrower eligibility, and disbursement systems. Faster rollout is possible for emergency loans, 
while larger programs require fraud prevention and sustainable repayment mechanisms. Previous experiences 
with similar schemes may reduce the time needed for implementation. 

146 PF4EE Programme Loan 
147 Maria Isabel Abreu, Rui A.F. de Oliveira, Jorge Lopes, Younger vs. older homeowners in building energy-related renovations: Learning 
from 
ISSN  2352-4847, 
https://doi.org/10.1016/j.egyr.2019.08.036. 
148  https://www.levif.be/belgique/politique/regions/bruxelles/a-bruxelles-plus-de-1-500-credits-a-la-renovation-ecoreno-ont-ete-accordes-
en-17-mois 

the  Portuguese  case,  Energy  Reports,  Volume  6,  Supplement  1,  2020,  Pages  159-164, 

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2.3.5  Case Study: Energy efficiency information programmes & tools 

Overview of the measure 

2.3.5.1  Objectives and scope of the measure 

One of the main barriers to improving energy efficiency in buildings is the lack of awareness and knowledge 
among  building  owners,  tenants,  and  even  professionals  such  as  architects  and  facility  managers.  Many 
stakeholders are unaware of the cost savings and comfort improvements energy-efficient retrofits can bring149. 
Energy  efficiency  investments  typically  need  long-term  financial  planning.  Building  owners  and  decision-
makers need reliable data on costs, payback periods, and available subsidies or tax incentives. Information 
tools enable better planning by providing scenario analysis, tailored recommendations, and access to case 
studies or databases of successful retrofits.  

A  variety  of  information  media  and  tools  are  employed  in  public  awareness  and  consultation  programmes 
aimed  at  promoting  energy efficiency  in buildings. These instruments are crucial in reaching diverse target 
groups and motivating behavioural change. The following communication channels and formats are commonly 
used across different initiatives: 

•  Personal consultations and advisory services are provided to building owners and residents. These 
offer  tailored  support  on  topics  such  as  heating  system  selection,  insulation,  energy-efficient 
appliances,  and  post-renovation  building  maintenance.  Such  services  often  include  free-of-charge 
counselling at local advisory centres. 

•  Television spots are used to deliver key messages to a broad audience, leveraging the high reach and 

emotional impact of visual media. 

•  Print media, including newspapers, brochures, and magazines, serve to inform the public in a more 

detailed and lasting format. 

•  Social  media  platforms  are  increasingly  used  for  interactive  engagement  and  to  target  specific 

demographic groups with tailored content. 

• 

Internet platforms and online tools provide accessible, up-to-date information, interactive features, and 
practical guidance for implementing energy-saving measures. 

•  Public education and outreach activities, such as exhibitions and training sessions, are organized to 

deepen understanding and enable hands-on learning experiences. 

•  Networks  of  partner  organizations  and  multipliers  help  disseminate  information  more  effectively  by 

mobilizing institutions with direct access to specific communities or user groups. 

These  media  channels  complement  each  other  and,  when  applied  strategically,  significantly  enhance  the 
impact of information programmes on energy efficiency in the building sector. 

Information  tools,  such  as  energy  performance  certificates  (EPCs),  home  energy  reports,  and  building 
renovation passports, help visualize energy use and potential improvements in an accessible way. The Energy 
Performance of Buildings Directive (EPBD) obliges EU Member States to issue EPCs for newly constructed 
and existing buildings when they are sold, re-let and, in some cases, extensively renovated. With the revision 
of the EPBD in 2024, EU Member States are also obliged to introduce a national building renovation passport 
scheme by 29 May 2026. 

2.3.5.2  Geographic scope 

Information programmes are known from several Member States, such as LV, CZ, SI, FR, and DE. There are 
probably many others. 

Information Programme "Let's Live Warmer" (Latvia)  

In Latvia the programme motivates for building energy efficient renovation. Wide scope of methods is applied 
to reach and to inform and consult societies of the flats’ owners (housing associations) regarding conditions 
and benefits of energy efficiency increase and the best practices of it, available financial support. Programme 
consults  also  on  the  good  practice  of  maintaining  the  apartment  building  after  renovation.  To  enhance 
awareness and improve access to energy efficiency support, the initiative offers free consultations, informative 
campaigns, financial assistance, and centralized tools, resources, and documentation. A one-stop agency that 
creates  tailored  action  plans  to  help  homeowners  improve  energy  efficiency  and  assists  in  securing  co-

149 Expert interviews and webinar participants 

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financing. It has also developed a digital app, "VērtēRenovē!", which supports homeowners in making informed 
decisions about energy efficiency improvements.150  

Information campaign on raising awareness about energy efficiency (Czech Republic) 

The measure, managed by the Ministry of Industry and Trade, aims to raise awareness of energy efficiency 
with a view to changing the behaviour of energy consumers and reducing energy consumption. 

The national information campaign will be multilevel in order to maximise the impact on energy consumers. 
Information  activities  will  be  realised  through  TV  spots,  information  activities  in  print  media,  information 
activities on social networks and, last but not least, through an Internet platform. 151 

Energy advice network for citizens – ENSVET (Slovenia) 

Energy advice network for citizens - ENSVET is the main programme for advising, informing, and assisting the 
citizens (local residents) in the implementation of energy efficiency measures in households and the expansion 
of consulting for companies in 2027. 

The consulting and assistance regarding the energy efficiency measures is very important and free of charge 
for all owners of houses, who want to invest in energy efficiency measures. The consulting offices advise in 
the following cases:  

Selection of heating systems and heating devices, exchange of the old heating device and heating, decrease 
of fuel consumption, selection of suitable fuels, insulation of buildings, selection of suitable windows, sanitation 
of buildings with the purpose to reduce energy consumption, using energy efficient households’ appliances, in 
all other questions about the energy use in households.152 

ADEME energy-saving awareness campaign (France) 

The objective of this operation carried out by ADEME and supported by Ministries is to sensibilize and mobilise 
the public audience about energy management and climate change in order to incite them to act daily to make 
energy  savings.  The  logic  has  been  to  find  partners  in  order  to  constitute  networks  in  capacity  to  diffuse 
efficiently  messages  and  information  towards  different  types  of  targeted  public.  A  campaign  was  released 
across all media platforms with a slogan and a "club of partners" was created to improve public awareness of 
climate change by communication, training, exhibitions etc.153 

Information campaigns by various actors (Germany) 

In Germany, a wide range of information programmes and campaigns support building owners in implementing 
energy-efficient  renovations.  These  initiatives  aim  to  raise  awareness,  provide  expert  advice,  and  facilitate 
access to financial incentives, thereby encouraging sustainable transformation of the building stock. 

The federal government provides detailed information on energy efficiency and climate protection in buildings 
to accompany the federal subsidy for energy-efficient buildings (BEG). The federal government provides the 
website  “energiewechsel.de”,  offering  a  comprehensive  platform  with  best  practices,  financing  advice,  and 
planning tools for residential, commercial, and public buildings.154 At the regional level, energy and climate 
protection  agencies  conduct  tailored  information  campaigns  that  address  local  needs.  These  often  include 
personal  energy  advice,  public  outreach,  and  stakeholder  engagement  to  foster  energy-efficient  building 
renovation. 

Municipalities are supported through the National Climate Initiative (NKI) to launch local renovation campaigns 
targeting homeowners.155 These initiatives aim to inform and motivate private property owners to implement 
energy-saving measures in their buildings. Furthermore, the consumer advice centres (Verbraucherzentralen) 
offer  government-funded  energy  counselling  services.  These  are  available  nationwide  and  provide 
independent, expert guidance on topics such as heating systems, insulation, and renewable energy, through 
telephone, online, or in-person consultations. 

150 Let's live warmer | Ekonomikas ministrija 
151 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/4375 
152 Mreža Ensvet | Eko sklad 
153 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/604 
154 https://www.energiewechsel.de/KAENEF/Navigation/DE/Home/home.html  
155 https://www.klimaschutz.de/de/service/medien/energetische-gebaudesanierung-mit-einer-sanierungskampagne-
hauseigentumerinnen 

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2.3.5.3  Rationale, intervention logic and addressed barriers  

Providing information to building and flat owners makes them aware both of the inefficiency of the property 
and of how to address it, removing a barrier for those otherwise unlikely to be aware of how to achieve savings 
such as the elderly. 

Programs  like  ENSVET  offer  personalized  advice,  making  energy  efficiency  measures  more  accessible  to 
older homeowners by accounting for their personal circumstances. 

Multilevel  campaigns,  such  as  the  one  in  the  Czech  Republic,  ensure  that  information  reaches  a  broad 
audience, including the elderly. The addressed barriers are “Lack of awareness of possible energy savings”, 
“Bad reputation and missing Information”, and “High age of building owners”.156 

Impact of the measure 

2.3.5.4  Expected impacts 

These programs aim to reach a wide audience, including older homeowners, to promote energy efficiency. 
However, only few numbers about their impact are published: 

•  The one-stop-agency expects (Latvia): 11 Peta Joule (PJ) cumulative energy savings 2012-2030.157  
• 

Information campaign on raising awareness about energy efficiency (Czech Republic): 30 PJ cumulative 
energy savings 2021-2030. 158 

•  Energy advice network for citizens -ENSVET (Slovenia): 2.4 PJ cumulative energy savings 2010-2021; 82 

kt CO2 cumulative emission savings 2010-2021.159 

Government  agencies  typically  fund  these  information  programs.  Information  programs  are  usually  free  for 
participants. Ensuring that information is accessible to all demographics, including those with limited digital 
literacy, is crucial. Coupling financial support with targeted information campaigns can enhance awareness 
and uptake among older populations. Providing guidance on selecting appropriate energy efficiency measures 
ensures effective use of funds. 

2.3.5.5  Scalability 

Information programs can be scaled nationally or regionally. Ensuring active participation from different target 
groups and different homeowners, e.g. older homeowners, apartment owners, requires targeted strategies. 

2.3.5.6  Replicability 

Similar programs can be implemented in other countries. 

Practicalities around implementation of the measure 

2.3.5.7  Speed of implementation 

Awareness campaigns and training programs take 6 months to 3 years, depending on scale and complexity. 
Planning includes content development, outreach strategies, and expert engagement. Previous experiences 
with similar schemes may reduce the time needed for implementation. 

2.3.6  Case Study: Financing support for building renovation 

Overview of the measure 

2.3.6.1  Objectives and scope of the measure 

Financing  support  for  building  renovation  reduce  costs  and  can  incentivize  energy  efficiency  measures. 
Funding  can  be  provided  in  the  form  of  grants  or  soft  loans  with  or  without  repayment  subsidies.  Several 
Member  States  already  have  funding  programmes  that  differ  in  terms  of  their  design.  Both  the  building 
envelope  and  the  heating  system  can  be  eligible  for  funding.  Article  17  of  the  EPBD  recast  require  MS  to 

the  Portuguese  case,  Energy  Reports,  Volume  6,  Supplement  1,  2020,  Pages  159-164, 

156 Maria Isabel Abreu, Rui A.F. de Oliveira, Jorge Lopes, Younger vs. older homeowners in building energy-related renovations: Learning 
ISSN  2352-4847, 
from 
https://doi.org/10.1016/j.egyr.2019.08.036. 
157 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/779  
158 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/4375 
159 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/950 

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provide  adequate  financing  and  support  measures  and  includes  several  recommendations  on  how  to  best 
target  such  support  measures.  The  eligible  technologies  play  an  important  role  in  the  effectiveness  of  the 
support programmes. In addition to  heat pumps, systems consisting  of heat pumps and photovoltaics and, 
where  applicable,  storage  systems,  as  well  as  solar  thermal  systems  can  also  be  subsidised  for  heating 
systems. 

2.3.6.2  Geographic scope 

Financing  support  for  building  renovations  are  available  in  several  MS.  Some  of  the  funding  programmes 
include specific support for households with low income. Examples include:  

Renovation of apartment buildings 2022-2030 (Estonia): 

This measure provides financial support for both the complete reconstruction of apartment buildings and, as 
an individual activity, the replacement of a heating device in the heating system of a gas, furnace or electric 
apartment  building  with  a  heating  device  using  renewable  energy  sources,  or  the  connection  of  these 
apartment buildings to a district heating network.160 

Austrian Federal Government’s Renovation Initiative (Austria): 

Funds  are  made  available  for    the  enhancement  of  the  thermal  quality  of  residential  buildings  and  the 
expansion  of  efficient  heating  systems,  as  well  as  for  efficient  new  construction.  The  amount  received  is 
dependent  on  the  achieved  thermal  quality  and  efficiency.161  In  February  2021,  the  Austrian  Ministry  for 
Climate Protection launched a new funding initiative to support thermal building renovations (the “renovation 
cheque”) and the replacement of fossil-fuel-based heating systems (“out of oil and gas”) with climate-friendly 
alternatives.  This  national  subsidy  programme  aims  to  reduce  heating  energy  demand  and  promote  the 
transition to low-carbon heating technologies. Private households and businesses are eligible for grants of up 
to €5,000 when replacing fossil-fuel heating systems with district or local heating connections. Where such 
connections are not feasible, support is available for the installation of climate-friendly heat pumps or biomass-
based central heating systems. In addition, households affected by energy poverty may receive up to 100% of 
the investment costs covered.162 

MaPrimeRénov (France): 

The MaPrimeRénov’ programme—originally launched in 2011 under the name Habiter Mieux—was designed 
to support low- and modest-income households in undertaking energy renovations. Funded primarily through 
the French National Housing Agency (ANAH), the programme is financed via EU Emissions Trading System 
(ETS) revenues, energy suppliers' contributions through white certificates, and additional minor sources. 

Initially, MaPrimeRénov’ offered two types of financial assistance: support for individual renovation measures 
and for comprehensive retrofits, with aid levels tailored to household income and size. Over time, the scheme 
was restructured to incentivize more holistic renovations over isolated measures. Income ceilings are adjusted 
regionally,  with  higher  thresholds  in  Île-de-France  to  account  for  cost-of-living  differences.  Households  are 
divided into five income categories, which determine eligibility and the level of subsidy. The extent and type of 
renovation work also influence the amount granted. 

The standard MaPrimeRénov’ scheme provides financial incentives for the installation of low-carbon heating 
and domestic hot water systems. While additional insulation work is permitted, it is not mandatory. In multi-unit 
residential buildings, replacing the heating system is optional. Eligible properties must be at least 15 years old 
and  serve  as  the  owner’s  primary  residence.  All  recipients  are  entitled  to  advisory  support  through  Mon 
Accompagnateur  Rénov’,  a  guidance  service  targeting  homeowners  with  very  low,  low,  or  intermediate 
incomes. Higher-income households are excluded from the scheme. 

Financing  is  provided  as  fixed  amounts  based  on  the  technology  installed  and  the  income  category  of  the 
applicant. For instance, an air-to-water heat pump is subsidised at €3,000 for intermediate-income households 
and €5,000 for very low-income households. For thermal insulation, grants are calculated per square meter, 
with  rates  varying  by  income  group  and  renovation  type.  In  select  areas,  the  Territories  of  Zero  Energy 
Exclusion initiative provides top-up funding to ensure full project financing for eligible households. 

160 https://www.odyssee-mure.eu/publications/efficiency-trends-policies-profiles/estonia.html#buildings 
161 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/402 
162 Ibid.  

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The  MaPrimeRénov’  Parcours  variant  supports  ambitious,  performance-based  renovations.  To  qualify, 
projects  must  achieve  an  improvement  of  at  least  two  energy  performance  certificate  (EPC)  classes  and 
include a minimum of two different insulation measures. Fossil-fuel heating systems are ineligible; existing oil- 
and  coal-based  systems  must  be  replaced.  An  initial  energy  audit  is  mandatory  to  assess  the  project’s 
potential. For homes initially rated G, F, or E, phased renovations over up to five years are permitted, provided 
that beneficiaries are assisted by a Mon Accompagnateur Rénov’ case officer throughout the process.163 164  

Federal subsidy for efficient buildings (Bundesförderung für effiziente Gebäude (BEG)) (Germany): 

This funding scheme supports individuals, municipalities, companies, NGOs in improving energy efficiency of 
the building envelop and the heating system. From 2024, the funding of heating systems consists in a base-
subsidy of 30% for all homeowners, landlords, companies, non-profit organisations and municipalities, which 
replace  old  fossil  heating  systems.  An  additional  subsidy  of  30%  is  granted  to  households  with  a  taxable 
household income of a maximum of 40.000€ annually. Additional subsidisation can be received (depending 
on the situation of the applicant), although the maximum subsidy is 70%. 165 

Eco-Fund (Slovenia):  

Eco Fund (Slovenian Environmental Public Fund) is a Slovenian programme aimed at reducing energy poverty 
among most vulnerable citizens. Incentives for energy efficiency improvements can go up to €9,620 or €15,000 
in the case the roof of the building is in bad condition. Beneficiaries can obtain such incentives for a number 
of energy-efficiency improvements, including the installation of heat pumps. Incentives come  in the form of 
grants/subsidies and soft loans. 

Clean Air Programme, Warm Apartment Programme (Warm housing), Stop the Smog (Poland) 

There are several funding instruments to improve the energy efficiency of residential buildings in Poland. The 
two  main  programmes  are  the  Clean  Air  Programme,  addressing  single  family  houses,  and  the  Warm 
Apartment  Programme,  addressing  multi-family  houses.  In  both  programmes,  the  amount  of  funding  is 
staggered according to income, the lower the income, the higher the funding. There are three income levels in 
each  programme.  Households  with  high  incomes  are  not  eligible  for  the  subsidy.  The  main  aim  of  the 
programmes  is  to  improve  air  quality  and  replace  the  remaining  coal  stoves.  Subsidies  are  provided  for 
alternative heating technologies and for renovation measures aimed at improving the building envelope. The 
subsidy rate for heat pumps is higher than that for new and efficient fossil fuel technologies. 

One more Polish programme, Stop the Smog, addresses the least well-off households in single-family houses, 
particularly  those  whose  members  are  entitled  to  cash  benefits.  Heating  system  replacement  and  energy 
refurbishments are subsidised.166  

2.3.6.3  Rationale, intervention logic and addressed barriers  

Subsidies  offset  high  up-front  costs,  making  renovations  more  affordable.  Specific  support  for  energy-poor 
applicants  ensures  those  least  able  to  afford  renovations  can  achieve  energy  use  reductions.  Through 
subsidies,  energy  efficiency  renovations  become  more  accessible.  High  up-front  costs  and  insufficient 
operating cost savings reduce incentive for investments and high renovation efforts often overburden private 
owners. This cost is high also for commercial buildings but may be more actionable in this sector as commercial 
enterprises  are  expected  to  take  a  more  proactive,  economically  efficient  approach  to  heating  system 
replacement.167 

Impact of the measure 

2.3.6.4  Expected impacts 

According to the Odyssee-Mure-Database the following impacts are expected: 

163 https://publications.jrc.ec.europa.eu/repository/handle/JRC140866 
164 https://france-renov.gouv.fr/preparer-projet/faire-accompagner/mon-accompagnateur-renov 
165 https://www.odyssee-mure.eu/publications/efficiency-trends-policies-profiles/germany-german.html#overview 
166 https://publications.jrc.ec.europa.eu/repository/handle/JRC140866 
167 https://build-up.ec.europa.eu/en/resources-and-tools/articles/eu-initiatives-financing-building-renovation; 
Clara  Camarasa,  Lokesh  Kumar  Kalahasthi,  Leonardo  Rosado,  Drivers  and  barriers  to  energy-efficient  Technologies  (EETs)  in  EU 
residential  buildings,  Energy  and  Built  Environment,  Volume  2, 
ISSN  2666-1233, 
https://doi.org/10.1016/j.enbenv.2020.08.002. 

Issue  3,  2021,  Pages  290-301, 

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•  Estonia: cumulative savings of 0.183 PJ in 2030 168 and a € 460 million cumulative public budget (2022-

2028). 

•  Austria: cumulative savings of 7.9 PJ (2014-2020) 169 and a €381 million cumulative public budget (2014-

2020).   

•  Germany: 14,600 kt CO2 (total annual savings in 2030)170 with yearly budgets between 7.5 billion euros in 

2024 and 2025 and 10.3 billion euros from 2026.171  

•  France: around 2.1 million renovations carried out between 2020 and 2023, of which 247,680 are large-

scale renovations, supported by 9.8 billion euros in aid.172 

These  programmes  might  target  various  sectors,  including  residential,  commercial,  and  public  buildings, 
aiming for widespread energy efficiency improvements. Depending on coverage the potential savings would 
be substantial. Improved energy efficiency can lead to reduced energy poverty and enhanced public health 
due to better living conditions. Targeted subsidies can reduce energy poverty, delivering social benefit. 

For  the  most  part,  financing  support  is  government  funded.  While  state  support  reduce  initial  expenses, 
property owners may still bear a portion of the costs. While the own contribution of the building owners is often 
amortized  through  long-term  savings,  low-income  households  might  have  problems  paying  the  own 
contribution in the short term. It may therefore be necessary to combine a grant with a soft loan for the own 
contribution. Moreover, these programs can complement tax incentives to increase overall funding and reduce 
the overall cost of renovations. However, they can also be available as an alternative. Information programmes 
are necessary to ensure that households make use of the subsidies. Financial support is also complement 
measures such as mandatory standards by making implementation based on these measures more affordable. 
Furthermore, retrofitting buildings increases the efficiency of heating technologies like heat-pumps and makes 
them more attractive in the long-run.173 

2.3.6.5  Scalability 

These programs are designed to be scalable, with frameworks that can be expanded to accommodate more 
applicants  as  additional  funding  becomes  available.  Scaling  up  requires  increased  financial  resources  and 
administrative capacity to manage a higher volume of applications. 

2.3.6.6  Replicability 

Support for building renovation are already in place across many Member States. This may limit additionality 
possible for these measures, but expansion of existing measures and consideration of how implementation 
can be improved may yield positive impacts. 

These support models can be adapted to other countries, provided there is political will, available funding, and 
a supportive policy framework. Successful replication depends on factors such as the existing condition of the 
building stock, economic conditions, and the capacity of the construction industry to meet increased demand. 
Subsidy measures are suitable for all other Member States, and the value and eligibility requirements of the 
subsidy  can  be  set  based  on  the  national  context.  However,  improving  energy  efficiency  should  be 
encouraged, as it offers significant returns: in the buildings sector, each euro invested yields a return of 12 
euros  over  the  lifetime  of  the  investment,  while  in  industry,  one  euro  invested  results  in  4  euros  of  energy 
savings over the same period.174 

Practicalities around implementation of the measure 

2.3.6.7  Speed of implementation 

Implementing a government subsidy scheme takes 1–3 years, including policy design, administrative setup, 
beneficiary  registration,  and  rollout.  Emergency  programs  may  take  months,  while  complex  schemes  need 
years for infrastructure, fraud prevention, and full implementation. Previous experiences with subsidy schemes 
may reduce the time needed for implementation. 

168 https://www.odyssee-mure.eu/publications/efficiency-trends-policies-profiles/estonia.html#buildings 
169 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/402  
170 https://www.odyssee-mure.eu/publications/efficiency-trends-policies-profiles/germany.html  
171 https://www.umweltbundesamt.de/sites/default/files/medien/11850/publikationen/projektionen_2025-instrumentenpapier_korr_2.pdf  
172 https://www.anah.gouv.fr/sites/default/files/2024-01/202401_ChiffresCles2023_WEBA.pdf 
173 https://iea.blob.core.windows.net/assets/4713780d-c0ae-4686-8c9b-29e782452695/TheFutureofHeatPumps.pdf 
174 Energy efficiency awareness - European Commission 

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2.3.7  Case Study: Tax deductions for energy efficiency renovations and renewable heating systems 

/ VAT deductions 

Overview of the measure 

2.3.7.1  Objectives and scope of the measure 

In addition, or as an alternative to programmes in which grants, low-interest loans or repayment subsidies are 
granted,  financial  support  for  energy-efficient  renovations  including  the  heating  system  can  be  provided 
through tax incentives. Tax incentives can be designed as deductibility of renovation costs from tax liability or 
reduced VAT on renewable heating technologies, e.g. heat pumps. 

While a reduced VAT for heat pumps is widespread within Member States, a tax deductibility is only known 
from Germany. 

2.3.7.2  Geographic scope 

Many Member States already use tax deductions for incentivizing energy efficiency measures.   

Reduced VAT for buying and installing a heat pump 

In 2023, a reduced VAT for heat pumps applies in 17 EU Member States (LT, BG, AT, BE, CZ, EE, FR, EL, 
IE, IT, LV, LU, PL, PT, RO, CY, SI).175 The amount of the reduction varies between 19% in Luxembourg and 
75% in Greece. A VAT exemption for buying a heat pump applies in two Member States (Lithuania, Bulgaria) 
and  the  UK.  Sometimes  the  heat  pump  must  fulfil  certain  requirements.  In  Romania,  the  reduction  is  also 
applicable for solar thermal panels.176  

Reduced VAT for energy renovations in the residential sector - Cyprus 

In  Cyprus,  tax  incentives  include  increased  capital  allowances  of  4%  (from  3%  to  7%)  for  investment  to 
increase the energy efficiency of buildings, provided the investments are made during the fiscal years 2023-
2026.177 

Thermo-modernisation tax relief (Poland):  

In  Poland  the  full  value  of  energy  efficiency  renovations  (up  to  PLN  53,000,  equivalent  to  around  EUR 
12,500178), including related costs such as energy audits, is deductible from taxable income for the purposes 
of calculating income tax in single-family residential buildings.179  

Reduced VAT-rate on Labour costs (Netherlands):  

In The Netherlands there is a reduced VAT rate on labour costs for insulation and glass and for maintenance 
and  renovation  of  residential  buildings  (Verlaagd  BTW  tarief).  The  labour  component  of  the  cost  of  energy 
efficiency renovations on residential buildings over 2 years old has a VAT rate reduction from 19% to 6%. 180  

Tax Credits for Small Scale Landlords to Retrofit Rental Houses (Ireland) 

Small-scale landlords can deduct up to € 10 k from their rental income for the purposes of determining tax if 
they retrofit their property while a tenant remains in the property. 181 

Household tax credit (Finland) 

In  Finland  homeowners  are  eligible  for  the  Household  tax  credit  covering  labour  costs  associated  with 
replacing,  upgrading,  and  repairing  heating  systems  in  small  residential  houses,  as  well  as  other  energy 
efficiency improvements. The rate of the deduction varies by recipient and the specific work done. 182  

Tax incentives for energy-efficient home renovation (Luxembourg):   

175 For more information on measures reducing VAT on electricity consumed by heat pumps refer to Chapter 2.3.1. 
176 https://www.ehpa.org/wp-content/uploads/2023/09/EHPA_VAT-on-heat-pumps-in-Europe-report_September-2023.pdf  
177 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/466 
178 As per the conversion rate 1 PLN = 0.2344 EUR, (Aug 29, 2025).  
179 https://www.podatki.gov.pl/pit/ulgi-odliczenia-i-zwolnienia/ulga-termomodernizacyjna/  
180 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/842  
181 Minister Donohoe announces a new tax incentive to encourage small-scale landlords to undertake retrofitting works 
182 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/582  

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To encourage energy-efficient renovations, rental properties that qualify for financial aid under the "Klimabonus 
Wunnen"  program  can  benefit  from  a  6%  depreciation  rate  for  10  years  on  sustainable  energy  upgrades. 
Additionally, all renovation work—including but not limited to energy improvements—can take advantage of a 
special reduced VAT rate of 3%, up to a certain limit.183  

Tax deduction in Germany 

In Germany homeowners can deduct 20% of the costs from renovation measures on the building envelope 
and the installation of new renewable heating systems from their income tax184, 185. 20% of the expenses and 
at most EUR 40,000 per residential property is tax deductible, spread over three years. (§35c, para. 1, EStG 
2009).  This  addresses  citizen  paying  taxes  who  renovate  their  building  they  live  in.  The  deduction  can  be 
claimed for through the income tax declaration. This tax subsidy cannot be combined with a subsidy from the 
“Federal subsidy for efficient buildings “(BEG).186 The tax reduction of up to EUR 40,000 can also be granted 
for energy-related measures in a condominium. In this case expenses relating to the separate property and 
the common property are eligible. Expenses for energy efficiency measures that affect the common property 
are to be taken into account in proportion to the co-ownership share.187 

2.3.7.3  Rationale, intervention logic and addressed barriers  

Reduced VAT, and/or relief on other tax via a tax credit for energy efficiency measures offsets the high cost, 
reducing the financial burden on households. 

Tax incentives directly reduce the financial burden on homeowners, making energy efficiency measures and 
renewable heating systems more accessible and attractive. 

Impact of the measure 

2.3.7.4  Expected impacts 

By  making  renewable  heating  systems  more  affordable,  these  measures  to  reduce  the  upfront  cost  aim  to 
significantly  increase  their  penetration  in  the  residential  sector,  thereby  reducing  reliance  on  fossil  fuels. 
Widespread  adoption  of  renewable  heating  systems  can  lead  to  substantial  reductions  in  greenhouse  gas 
emissions from the residential heating sector. 

Evaluations of the tax deductibility of refurbishment measures in Germany are not available. Tax deductibility 
is handled by the Federal Ministry of Finance (while the “Federal subsidy for efficient buildings” - programme 
is handled by the Ministry of Economics and Energy) via the local tax offices and has not been systematically 
evaluated  yet.  It  is  unclear  which  groups  of  owners  may  prefer  tax  incentives  to  a  subsidy  via  the  existing 
subsidy  programmes.  It  is  assumed  that  a  tax  deduction  is  more  attractive  for  wealthy  owner-occupied 
households with a high tax burden. 

The cost to the government is indirect, manifesting as reduced tax revenues due to deductions and lower VAT 
collections. As consumers benefit from reduced costs, manufacturers and installers may experience increased 
demand, potentially leading to economies of scale and reduced prices over time. The social benefits, including 
environmental improvements and the potential for reduced energy costs for households, could be expected to 
outweigh the loss in tax revenue. 

With regards to synergies with other measures, VAT deductions complement other funding programmes. All 
Member States with subsidies for energy efficiency measures including heat pump installations mentioned in 
chapter 2.3.6 additionally have a reduced VAT on heat pumps, except from Germany. The effectiveness of 
VAT reductions depends on factors such as average income levels, existing heating infrastructure, and public 
awareness of renewable technologies. The tax incentive in Germany replaces other financial measures such 
as subsidies.  

183 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/4777 
184 Income Tax Act - Income Tax Act 
185  ESanMV  -  Ordinance  on  the  Determination  of  Minimum  Requirements  for  Energy-Efficient  Measures  for  Buildings  Used  for  Own 
Residential Purposes in Accordance with Section 35c of the Income Tax Act 
186 https://www.energiewechsel.de/KAENEF/Redaktion/DE/Foerderprogramme/steuerliche-foerderung-fuer-energetische-
gebaeudesanierung.html 
187 https://www.bvl-verband.de/fileadmin/steuerpolitik/bmf-schreiben/2021/2021-01-14-steuerliche-foerderung-energetischer-
massnahmen-an-zu-eigenen-wohnzwecken-genutzten-gebaeuden-einzelfragen-zu-paragraf-35c-EStG.pdf  

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2.3.7.5  Scalability 

These  tax  incentives  can  be  scaled  nationally,  depending  on  fiscal  capacity  and  policy  priorities. 
Implementation requires adjustments to tax codes and effective communication strategies to inform eligible 
homeowners. 

2.3.7.6  Replicability 

The reduced VAT measures can be transferred to other member states depending on the fiscal possibilities 
and  political  priorities.  Adjustments  to  align  with  national  tax  systems  and  economic  conditions  might  be 
necessary. Success depends on factors such as public awareness, the simplicity of the application process, 
and the availability of qualified installers. 

Practicalities around implementation of the measure 

2.3.7.7  Speed of implementation 

Launching  a  VAT-reduction  scheme  takes  1–2  years,  requiring  policy  design  and  legislative  approval. 
Launching tax incentives might take 2-4 years, requiring policy design, legislative approval, and administrative 
setup.  Coordination  with  tax  authorities,  businesses,  and  monitoring  bodies  ensures  compliance.  Previous 
experiences with similar schemes may reduce the time needed for implementation. 

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2.4  INDUSTRY 

This section presents the 5 best practice case studies developed to promote decarbonisation of the industry 
sector. 

2.4.1  Case Study: Financing schemes supporting energy efficiency investments 

Overview of the measure 

2.4.1.1  Objectives and scope of the measure 

Subsidy  schemes  implemented  across  several  EU  Member  States  aim  to  stimulate  private  investment  in 
energy efficiency (EE) and renewable energy (RE) by reducing the financial burden of such improvements. 
These measures promote sustainable energy practices and innovation in industrial and commercial sectors, 
while contributing to the reduction of greenhouse gas emissions and overall energy consumption. Although 
the specific design varies by country, the schemes generally target SMEs, large companies, and municipal 
enterprises  through  a  mix  of  financial  instruments,  including  investment  grants  (e.g.,  Austria’s  Domestic 
Environmental Support Programme - UFI), tax credits (e.g., Hungary’s corporate income tax credit), and soft 
loans  (e.g.,  Latvia’s  ALTUM  programme).  The  support  provided  through  these  subsidy  schemes  does  not 
constitute  a  breach  of  EU  state  aid  rules.  This  is  because  the  aid  is  either  of  a  general  and  thus  non-
discriminatory  nature,  or  considered  compatible  as  it  falls  under  the  General  Block  Exemption  Regulation 
(GBER) or the Climate, Energy and Environmental Aid Guidelines (CEEAG). 

2.4.1.2  Geographic scope 

These measures are widely implemented across EU Member States. This case study includes programmes 
from  Austria,  Finland,  Germany,  Hungary,  Italy,  Latvia,  the  Netherlands,  Poland,  and  Spain.  While  the 
overarching goal is consistent, the implementation details vary significantly. Such details include the mix of 
financial  instruments,  the  level  of  financial  support,  the  thresholds  to  access  the  programme,  the  targeted 
stakeholders (SMEs vs large industries, specific sectors, etc.), and the types of investments eligible for funding. 

For  instance,  Austria’s  UFI  programme  focuses  on  grants  for  thermal  renovation  and  heat  recovery,  while 
Finland’s scheme includes subsidies for energy audits and investments in new technologies. In Latvia, soft 
loans  are  tailored  to  the  cash  flow  generated  by  energy  savings,  making  them  particularly  accessible  to 
SMEs.188  Italy’s  Transition  5.0  Plan  is  notable  for  linking  tax  credits  directly  to  energy  performance 
outcomes 189,  while  Spain’s  regionally  administered  grant  programme  ensures  local  adaptation  and 
accessibility across diverse industrial contexts.190 

2.4.1.3  Rationale, intervention logic and addressed barriers  

Many  businesses  (especially  SMEs)  face  financial  barriers  to  investing  in  energy  efficiency,  such  as  high 
upfront  costs  and  limited  access  to  capital.  These  subsidy  schemes  address  such  barriers  by  reducing 
investment costs and improving financing conditions. For example, Germany’s KfW Environmental Protection 
Programme  offers  long-term  loans  at  favourable  interest  rates,  with  eligibility  based  on  projected  energy 
savings.191 In Hungary, the tax credit is only available for projects that exceed mandatory efficiency standards, 
ensuring that public funds support genuinely additional improvements. Italy’s Transition 5.0 plan addresses 
both  financial  and  informational  barriers  by  tying  support  to  measurable  outcomes,  thus  encouraging  data-
driven  investment  decisions.  Spain’s  programme,  by  decentralising  implementation  to  regional  authorities, 
increases the flexibility and enhances responsiveness to local industrial needs.  

The financial side of these programmes is particularly beneficial to SMEs, which may lack the financial capacity 
to  undergo  significant  investment  in  EE  and  RE,  in  comparison  with  larger  enterprises.  Additionally, 
administrative simplification, as seen in Germany’s low-requirement application process and Spain’s regional 
delivery model, further reduces barriers for small industries. 

Impact of the measure 

188 Aizdevumi uzņēmumu energoefektivitātei vai ilgtspējai - Altum 
189 Transizione 5.0 
190 Direct granting of aid for energy efficiency actions in SMEs and large companies in the industrial sector | Idae 
191 
eeap.pdf?__blob=publicationFile&v=1 

https://www.bundeswirtschaftsministerium.de/Redaktion/EN/Publikationen/national-energy-efficiency-action-plan-

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2.4.1.4  Expected impacts 

These  schemes  have  demonstrated  effectiveness  in  making  EE  investments  more  accessible.  Austria’s 
Domestic Environmental Support Programme reported cumulative energy savings of 60.1 PJ between 2014 
and 2020. 192 Germany’s Environmental Protection Program achieved annual savings of 1.8 PJ in 2020, with a 
e in emissions.193 Spain’s “Direct granting of aid for energy efficiency actions 
annual reduction of 10.9 MtCO
in SMEs and large companies in the industrial sector” programme estimate cumulative savings of 42 PJ by 
2030.194  The  Netherlands’  BMKB-G  scheme  lacks  explicit  targets,  however  it  complements  other  green 
measures, such as the Energy Investment Allowance (EIA), which allows companies to deduct up to 40% of 
their green investment against their corporate income tax.  

₂

Public investment varies: Austria allocates €90 million annually, 195 Finland €198 million over five years (2018-
2023) 196, and the Netherlands guarantees 90% of loans under a €1.5 billion budget, significantly de-risking 
private lending.197 In Germany, the available budget for loans in 2020 was €2 billion.198 Italy’s Transition 5.0 
Plan is supported by a budget of €6.3 billion for the years 2024-2025. Spain allocated a total budget of €652 
million between 2019 and 2024.199  

2.4.1.5  Scalability 

These schemes are highly scalable. Their flexible design allows for adaptation across sectors and enterprise 
sizes. Italy’s Transition 5.0 plan exemplifies scalability by linking support to performance metrics, which can 
be  applied  across  industries  and  scaled  based  on  energy  intensity.  As  such,  the  level  of  support  can  be 
adjusted so that energy-intensive industries receive greater assistance, while less energy-intensive industries 
are provided with proportionately adjusted support. Latvia’s ALTUM programme demonstrates how soft loans 
can be scaled based on energy savings performance, making the model replicable in other contexts. Spain’s 
regional implementation model also supports scalability by allowing each region to tailor the programme to its 
industrial  base.  This  way,  each  region  can  adjust  support  measures  and  resource  allocation  to  mirror  the 
characteristics and needs of its local industries. However, Spain’s decentralised model comes at the price of 
an  increased  burden  on  regional  administrations,  which  may  face  a  challenge  due  to  low  manpower  and 
relevant skill sets to handle such programmes. 

2.4.1.6  Replicability 

The measures are replicable across EU Member States, particularly where administrative capacity and political 
agenda align. Countries with similar industrial structures and energy challenges stand to benefit most from 
other countries’ prior experience with subsidy schemes. The flexibility in design, which includes instruments 
from grants to tax credits and loans, allows for tailoring to national contexts and national budgetary constraints. 
Replicability  is  likely  to  be  more  challenging  when  there  are  significant  differences  in  administrative 
organization between countries, requiring additional efforts to adapt these measures to diverse contexts. 

Practicalities around implementation of the measure 

2.4.1.7  Speed of implementation 

Implementation  typically  takes  1–3  years,  depending  on  the  complexity  of  the  scheme  and  existing 
administrative  infrastructure.  Countries  with  prior  experience  are  likely  to  implement  new  schemes  more 
rapidly. For instance, Italy’s Transition 5.0 plan was first announced in early 2023 and approved in February 
2024. However, the implementing decree and the updated guidelines for implementation were published only 
in  August  2024.  This  measure,  alongside  other  measures  exemplified  here,  builds  upon  previous  subsidy 
programmes and thus required less time for development.  

Emergency programs may be deployed within months, while more complex systems - such as those involving 
tax credits or performance-based loans – may require longer times for setup and the development of fraud 
prevention systems.  

192 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/1028 
193 https://www.measures.odyssee-mure.eu/energy-efficiency-policies-database.html#/measures/1144 
194 Direct granting of aid for energy efficiency actions in SMEs and large companies in the industrial sector | Idae 
195 See note 192. 
196 https://www.altum.lv/pakalpojumi/biznesam/aizdevumi-uznemumu-eneregoefektivitatei/ 
197 BMKB-Groen | RVO.nl 
198 See note 193196. 
199 See note 194. 

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2.4.2  Case Study: Voluntary energy efficiency agreements  

Overview of the measure 

2.4.2.1  Objectives and scope of the measure 

Voluntary Energy Efficiency Agreements incentivise companies to decarbonise by supporting energy auditing, 
implementation of energy management systems, and formal commitments to improve energy efficiency. The 
impact of voluntary energy efficiency agreements can be significantly affected by the willingness of businesses, 
municipalities  and  other  actors.  These  agreements  serve  as  a  flexible  alternative  to  mandatory  measures, 
allowing companies and municipalities to implement energy-saving actions tailored to their specific needs and 
timelines. They are a collaborative initiative between the government and various sectors, aiming to enhance 
energy efficiency. Voluntary Energy Efficiency agreements can help contribute to achieving targets set by the 
Energy Efficiency Directive (EED), as well as contributing towards the implementation of obligations set under 
the Energy Performance of Buildings Directive (EPBD) 200. By implementing energy efficiency measures under 
such agreements, companies contribute to CO2 reduction targets as well and can meet economic requirements 
to safeguard the companies’ growth opportunities and continuity 201. In some cases, companies participating in 
the energy efficiency agreements receive extensive support, in the form of guidance and advisory services, 
and in some cases, they have access to discretionary subsidies for energy-saving investments.202 

2.4.2.2  Geographic scope 

There  are  multiple  cases  of  voluntary  energy  efficiency  agreements  in  Europe.  Two  notable  examples  are 
implemented in Belgium (Flanders & Wallonia) and in Finland. 

Finland  see  Energy  Efficiency  Agreements  as  an  important  part  of  their  energy  and  climate  strategy.  The 
agreements are planned to guide companies and municipalities towards continuous improvement in energy 
efficiency. The participants set a quantitative energy efficiency improvement target for themselves, and they 
implement actions, in order to achieve their targets which are set out in action plans. Since the 1990s, Energy 
Efficiency Agreements have been the primary tool in Finland for improving energy efficiency and meeting the 
strict EU obligations on improved efficiency in energy use. The current set of agreements run from 2017 – 
2025 and follow on from the previous agreements running from 2008 – 2016. 

In  Belgium,  from  2003  to  2026  Flanders  has  allowed  industrial  companies  to  participate  in  voluntary 
agreements for improving energy efficiency. In Flanders, companies within energy-intensive industries (annual 
energy  demand  >  0.1  PJ)  are  required  to  implement  an  energy  management  system  or  an  ISO  50001 
certification. SMEs have access to support for energy audits and subsidies for energy efficiency projects.  

Energy Policy Agreement 2023 – 2026 (Flanders) 

In  November  2002,  the  Flemish  government  adopted  the  benchmarking  covenant  as  an  energy  policy 
agreement aimed at large energy-intensive establishments (annual primary energy consumption of at least 0.5 
PJ) that fall under the EU ETS. From 2015 onwards, the Flemish government introduced an Energy Policy 
Agreement (EPA) 2015-2022. The energy policy agreement with the non-ETS companies was intended to help 
the Flemish Government achieve its climate objectives. Under the EPA, annual reporting of results, monitoring 
and control  was  also provided for through the reporting  obligations  to the  verification  office203. The Energy 
Policy Agreement was extended from 2023-2026 and the target group was expanded to include all energy-
intensive companies with a final energy consumption of at least 0.1 PJ. In the new energy policy agreement, 
companies must follow the following standards: 

•  An Internal Rate of Return (IRR) threshold is set for profitable/potentially profitable investments: 

200 https://energiatehokkuussopimukset2017-2025.fi/en/agreements/ 
201 https://ebo-vlaanderen.be/sites/ebovlaanderen/files/downloads/250416%20Jaarverslag%202023.pdf 
202 https://energiatehokkuussopimukset.fi/en/agreements/ 
203 The EPAs | EBO Flanders 

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Table 2-3 Internal rate of return limit set for energy efficiency investments/measures (Flanders) 

  Company type 

  EU ETS 

  Non- EU ETS 

  Profitable investments IRR 

  Potentially profitable 

threshold 

investments IRR threshold 

  12% 

  10.5% 

  10% 

  9% 

•  The lower IRR thresholds, compared to those required for mandatory investments under the Energy 
Planning  Decree,  ensure  that  companies  voluntarily  joining  the  EPA  implement  energy-saving 
investments that are additional, i.e. investments that would not be required under other policies due to 
their relatively low IRR. 

•  Participating companies must provide data on the heat demand and the residual heat potential of their 

site(s). 

•  Non- EU ETS companies carry out a mandatory climate audit in which they look for feasible and cost-
efficient  CO2  savings  and  measures  around  their  own  local  renewable  energy  production  and 
electrification before submitting their energy plan201. 

2.4.2.3  Rationale, intervention logic and addressed barriers 

As  part  of  the  assessment  of  the  supporting  measures  towards  decarbonisation  of  ETS2  sectors,  the 
willingness  of  industry  to  invest  in  decarbonisation  was  cited  as  a  key  barrier.  The  lack  of  willingness  to 
participate  in  voluntary  energy  efficiency  agreements  are  related  to  the  associated  incentives  and 
disincentives. With these agreements, incentives were the pull factor for companies while co-definition of goals 
ensured ownership, and penalties guaranteed compliance. Feasibility is also a key pillar of a voluntary energy 
policy agreement. The more feasible the energy policy agreement, the more likely that companies will enter 
them 204. 

In  Finland,  participants  of  energy  efficiency  agreements  can  apply  for  energy  subsidies  granted  by  the 
Government  on  conventional  energy  investments,  as  well  as  subsidised  energy  audits  for  small,  medium 
enterprises  (SMEs)200.  Rational  and  efficient  energy  use  cuts  costs  and  adds  to  operational  profitability  of 
industry,  which  is  visible  in  financial  reporting  records  of  companies.  Energy  efficiency  is  also  a  sign  of 
responsibility  for  companies  and  target-oriented  efficiency  attracts  the  interest  of  many  stakeholders.  In 
Finland, companies included in the agreement that are subject to an environmental permit are not subject to 
any separate requirements relating to energy efficiency.  

Impact of the measure 

2.4.2.4  Expected impacts 

In Finland, more than 770 companies and 157 municipalities have joined energy efficiency agreements and 
have implemented more than 27,000 individual energy efficiency measures and invested more than EUR 1,481 
million in energy efficiency over two years. The agreements have improved their energy use by a total of 14.8 
terawatt hours in 2017-2023. The measures implemented from 2017-2023 are expected to reduce annual CO2 
emissions  by  3.1  MtCO2e.  The  energy  cost  savings  from  the  corresponding  measures  implemented  are 
expected to reach a total of 800 million euros, 81% of which came from measures in heat and fuel205.  

From  2017-2023  government  support  for  energy  efficiency  investments  offered  through  the  Ministry  of 
Economic affairs and employment reached 144 million Euros in subsidies. Of which 15.4 million Euros were 
allocated to energy intensive industry and 32.7 million euros was allocated to medium sized industry. More 
information on the costs and investments in measures across industry subsectors can be found here. Results 
- Energiatehokkuussopimukset 2017–2025. 

In Flanders, 281 sites have joined the EPAs (2023-2026), 141 under the EU ETS and 140 non-EU ETS. The 
companies under the agreements have submitted an energy plan with 1,779 measures amounting to planned 
savings of 13.2 PJ, 95% of which are through measures supporting decarbonisation of fuels and heating. In 
the energy plan, the companies must also set a reference year as a baseline for calculating energy savings. 

204 https://ebo-vlaanderen.be/nl/de-ebos 
205 https://energiatehokkuussopimukset2017-2025.fi/en/results/ 

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The total final energy consumption of the participating companies was 416 PJ based on the reference years 
they chose (any year from 2019 – 2022, 248 sites chose 2022). This total accounts for approximately 28% of 
Flanders gross energy consumption. 92% of which fall under the EU ETS (26.8ktCO2e) and 8% non-EU ETS 
(2.4ktCO2e)201.  

Results for 2023 show that EPA companies achieved savings of 3 PJ which indicates that the new EPAs have 
had  a  smooth  start,  with  many  companies  acceded  into  agreements,  drawing  up  energy  plans  and 
implementing energy efficiency improvement measures. To maintain a guarantee of success under the EPAs 
the Energy plans submitted are limited to 20 “potentially profitable measures” which are considered higher risk. 
The IRR for this is highlighted in Table 2-3 above. 

2.4.2.5  Scalability 

Voluntary Energy Efficiency Agreements can be scaled to include less energy-intensive industries, or other 
sectors not yet included. These agreements can also be extended beyond the scope of energy efficiency to 
also include decarbonisation targets. There is no limitation on the application of voluntary agreements across 
sectors.  In  the  referenced  cases  from  Belgium  and  Finland,  voluntary  agreements  covered  industry,  the 
municipal sector (municipalities and cities) and the property sector (rental and commercial buildings).   

In Flanders, the sector organisations operating  under the  EU ETS and  outside  of the  ETS  have joined the 
energy policy agreement. Some examples include: The federation of the food industry, the Flemish Economic 
Association,  the  federation  of  the  chemical  industry  and  life  sciences,  the  professional  association  of  the 
Belgian textile, wood and furniture industry206. 

In Finland, participation is also not limited to specific sectors. Other countries may decide to limit voluntary 
agreements  to  specific  sectors,  depending  on  decarbonisation  priorities  and  readiness  of  private  actors.  In 
Finland the aim of the energy efficiency agreements is to improve the efficient use of energy within industry, 
the energy sector, service sector, property and building sector, municipalities, and oil-heated real estates. The 
Energy  Efficiency  Agreement  for  Industries  is  an  agreement  between  the  Government  and  industrial 
associations on the efficient use of energy, and companies join the energy efficiency agreement for Industries 
by signing a separate Accession Document into the action plan of their industrial branch. Action plans have 
been  created  for  the  following  industrial  branches  in  Finland:  Energy  intensive,  Food  and  Drink,  Chemical, 
Technology, Wood Product, Energy Production, Energy services, Motor Trade and Repairs, Commerce, Hotel 
and restaurants200.  

2.4.2.6  Replicability 

These  measures  can  be  replicated  in  other  countries.  Effectiveness  will  depend  on  the  number  of  public 
subsidies that could  be provided  as part of the  agreements as  well as  a rigorous monitoring  and reporting 
system  to  ensure  the  measures  implemented  by  participating  industry  are  both  economically  viable  with  a 
sufficient rate of return and achieve emission reduction targets. Replicability will also depend on the willingness 
of the private sector to participate in such agreements.  

Practicalities around implementation of the measure 

2.4.2.7  Speed of implementation 

Energy  efficiency  voluntary  agreements  take  1–3  years,  involving  stakeholder  negotiations,  framework 
development,  and  monitoring  protocols.  Government  collaboration  with  industries  ensures  measurable 
commitments. Previous experiences with similar schemes may reduce the time needed for implementation.  

In Belgium, Companies wishing to join the Energy Policy Agreement must complete an application form. There 
are  separate  application  forms  for  companies  under  the  EU  ETS  and  those  that  are  not  covered.  The 
applications are reviewed by the Verification of Flanders. Companies applying must have a primary energy 
consumption of at least 0.1 PJ 207.  

In Finland Joining the Energy Efficiency Agreement for Industries means that a company joins one or more 
Action Plans of the Energy Efficiency Agreement for Industries with a separate accession document. To join 
the  Energy  Efficiency  Agreement  for  Industries,  the  company  must  send  an  appropriately  filled  accession 
document and the accession details attached to the document to the industry association managing the Action 
Plan. A company joins the Energy Efficiency Agreement for Industries once the industry association managing 

206 https://ebo-vlaanderen.be/nl/de-ebos/toegetreden-sectororganisaties 
207 https://ebo-vlaanderen.be/nl/formulieren 

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the Action Plan has established that the accession document signed by the company is in due form and the 
association has submitted a copy of the document to Motiva Ltd to be entered into the participant register. In 
general,  the  company  must  include  all  of  its  sites  in  Finland  and  their  energy  use  in  the  Energy  Efficiency 
Agreement for Industries. If necessary, the company can join one or more Action Plans 208209. 

2.4.3  Case Study: Energy audits  

Overview of the measure 

2.4.3.1  Objectives and scope of the measure 

Energy  audits  usually  complement  broader  national  policies  that  include  financing  schemes  and 
decarbonisation  targets. Energy  audits  are  an  effective  tool  for  providing  accurate  information  on  energy 
consumption  and  processes. Often,  energy  audits  are  complemented  by  guidance  on  actions  to  improve 
energy efficiency. Currently, the Energy Efficiency Directive mandates energy audits for all large enterprises 
and  for  all  enterprises  with  an  average  annual  energy  consumption  higher  than  10  TJ,  regardless  of  their 
size.210 These audits must be carried out by independent experts (or supervised by independent authorities) 
with the first audit to be completed by October 11, 2026. 

Energy  audits  help  provide  enterprises  and  responsible  authorities  with  a  regular  review  of  the  energy 
performance  of  buildings,  operating  processes  and  industrial/commercial  facilities.  They  include  various 
analyses including consumption profiles and assessments of energy performance of different processes. They 
identify and quantify opportunities for cost-effective energy savings, and all the results are detailed in a report. 
It  is  essential  that  the  recommendations  that  are  technically  feasible  and  cost  efficient  are  transposed  and 
taken to implementation. 

2.4.3.2  Geographic scope 

Energy audits are implemented in multiple EU MS. Below are some specific examples from Ireland, Austria 
and Finland: 

Support Scheme for Energy Audits (SSEA) - Ireland 

The Sustainable Energy Authorities of Ireland’s (SEAI) Support Scheme for Energy Audits (SSEA) offers SMEs 
a €2,000 voucher towards the cost of an energy audit. In most cases, this will cover the total cost of the audit. 
Application to the scheme is easy, with automatic approval for eligible businesses. SMEs that participate in 
the programme receive targeted support to improve energy efficiency including advice and mentoring from a 
specialist  including  a  site  assessment  for  companies  with  a  significant  energy  spend,  training  in  energy 
management for groups of SMEs, and online energy management tools 211. In Ireland, businesses that apply 
to  receive  an  energy  audit  must  be  tax  compliant,  registered  in  the  Republic  of  Ireland  and  spend  at  least 
10,000 euros on energy (excluding transport costs) per year at the site being  audited in order to receive  a 
voucher to partake in an energy audit. In Ireland, the grant for energy audits is for businesses that do not fall 
under the scope of Article 8 of the Energy Efficiency Directive (SMEs) 212. 

Federal Energy Efficiency Act - Austria 

In Austria, energy audits for SMEs are supported by the Federal States and are carried out by trained and 
independent auditors. The Austrian Federal States have their own audit programmes each with a network of 
energy consultants. To push the implementation of recommendations of energy audits, the Austrian Federal 
Energy  Efficiency  Act  stipulates  that  in  their  energy  audit  reports,  enterprises  must  document  which 
recommendations from a  previous energy  audit report have  been  implemented or not.  If recommendations 
from a previous energy audit report have not been implemented, they must explain why. In 2024, around 4,900 
enterprises in Austria were covered by an energy audit/management system213. 

208 https://energiatehokkuussopimukset2017-2025.fi/wp-content/uploads/2020/02/Energy-Efficiency-Agreement-for-Industries-2017-
2025.pdf 
209 Energy Efficiency Agreements - Energiatehokkuussopimukset 2017–2025 
210 Energy Efficiency Directive 
211 Energy Audits for SMEs | Business | SEAI 
212 SSEA-Applicant-Guidance.pdf 
213 This information was provided by the Member State. 

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Energy Audit program - Finland 

Energy auditing has been one of Finland’s main energy conservation tools. They have been mentioned in all 
the national climate strategies since 1992. Finland´s Energy Audit Programme (the EAP) started as a subsidy 
policy in 1992, which was developed into a programme in 1993 and launched in practice in 1994. The EAP is 
a full-scale programme consisting of the following elements: programme administration, detailed guidelines, 
auditor  training  and  authorisation  as  well  as  a  monitoring  system  and  promotion  activities.  The  EAP  is  a 
voluntary programme but promoted by a subsidy to cover 40-50% the labour costs of the audit for industrial 
participants, run by the Ministry of Economic Affairs  and  Employment (MEAE) 214. Since 5 June 2014  large 
companies  have  not  been  receiving  subsidies  for  audits  because  they  are  within  the  sphere  of  mandatory 
audits required by the Energy Efficiency Directive215.  

2.4.3.3  Rationale, intervention logic and addressed barriers  

The importance of energy audits stems from the fact that individuals and companies are often not fully aware 
of  their  potential  to  improve  energy  efficiency  in  their  activities,  production  processes,  and  so  on.  These 
measures partially or fully cover the costs of energy audits, thus promoting and encouraging the use of a tool 
that  helps  companies  explore  opportunities  to  reduce  their  energy  consumption.  This  can  lead  to  lower 
expenses for businesses, especially when improvements can be implemented without further investment, and 
to reduced energy use and related emissions. 

These measures therefore address both the lack of awareness and the cost barriers associated with energy 
audits. In addition, they also help solve the issue of the shortage of skilled technical staff to carry out energy 
audits, thanks to the training of such professionals. 

Impact of the measure 

2.4.3.4  Expected impacts 

Energy audits have a number of significant benefits for companies falling under ETS2. They help create an 
understanding around energy use, through learning about where energy is used, how it is wasted and how its 
usage  can  be  made  more  efficient.  They  help  small  business  understand  the  low-cost  changes  to  make 
immediate energy savings, increase competitiveness, and reduce exposure to energy price fluctuations and 
in this instance, the effects of ETS2. All these benefits help to increase brand reputations211. This measure can 
support numerous sectors, but in particular the benefits can be felt for small industries, with higher impacts on 
those recipients which lack internal skills/resources and technical knowledge.   

• 
• 

• 

In Austria Annual savings for 2020 are estimated to have been 15.78 kt CO2 because of energy audits 216.  

In Ireland, Energy savings achieved in 2010 are equal to 180 GWh. Energy savings for 2020 are estimated 
to be 505 GWh. 

In  Finland,  subsidised  energy  audits  have  been  an  effective  way  to  improve  efficient  energy  use  and 
increase renewable energy. The energy cost savings as a result of energy audits in the SME industry have 
been as much as 27% 217. In the period between 1992 and 2004, the total costs of audits and subsidies 
amounted to 60 million euros.218 

These  measures  are  expected  to  interact  with  policies  aimed  at  increasing  awareness  and  at  providing 
financial support for decarbonisation. In Finland, financial support for energy audits is bigger if the company 
has joined a voluntary energy efficiency agreement. Some of the success stories from energy audits on specific 
industries can be found here, Results of energy audits in Finland - Motiva, including secondary benefits from 
an audit on the Porokylä bakery in Nurmes, where the energy audit not only resulted in energy savings, but 
also improved energy skills of the personnel, working conditions and the quality of the production process 219. 
The energy audit of Scantarp Oy, a Kuopio-based manufacturer of protective fabrics, highlighted good short- 
and long-term development targets. Results include the replacement of the refrigeration compressor with  a 
heat pump, upgrade of electric motors and mapping out a solution to substitute fuel oil220. 

214 Supported energy audits - Motiva 
215 Energy Efficiency Policies & Measures Database, Graph and Summary Table 
216 Energy Efficiency Policies & Measures Database, Graph and Summary Table 
217 Supported energy audits - Motiva 
218 Energy efficiency in the Nordics 
219 Energy audit brings savings and co-benefits to Porokylä bakery - Motiva 
220 Scantarp Oy: Energy audit provided new ideas and support for one's own plans - Motiva 

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2.4.3.5  Scalability 

Measures  supporting  energy  audits  can  be  expanded  provided  that  sufficient  public  funding  is  available  to 
subsidise the audits. Other sectors outside of industry, may benefit from increased support for energy audits, 
although the scalability of the measure will ultimately depend on auditor availability. Energy audits typically 
focus on energy efficiency only, however the case of Finland highlights that the scope of audits can also be 
expanded to optionally include the identification of decarbonisation opportunities. An energy audit can cover a 
property, transport chain or an entire municipality (municipal renewable energy audit). 

In the building sector energy audits aim to increase the efficiency of the property’s  energy consumption by 
investigating the chances for energy conservation and the utilisation of renewable energy. The energy audits 
of transport chains are comprehensive investigations of the transport chains of freight traffic and particularly 
beneficial  for  those  who  procure  transport  services,  such  as  municipalities  and  cities.  While  a  municipal 
renewable energy audit investigates a municipalities or city’s opportunities for using renewable energy in the 
heating  of  properties  and  electricity  production  within  its  area221.  As  such  the  flexibility  around  the 
implementation of energy audits in general is vast and the case of Finland, this coverage demonstrates the 
opportunity for a cultural shift towards energy audits for improving energy efficiency. 

In terms of the types of energy audits that can take place, they may be carried out on buildings, processes, or 
systems and it is generally a three-step process which involves preparation, a site visit and reporting211.  

2.4.3.6  Replicability 

These measures can be replicated across the EU with high benefit potential as most SMEs across Europe do 
not perform voluntary energy audits. Article 8 of the Energy Efficiency Directive (EED) only puts mandatory 
requirements on larger companies to undertake energy audits every 4 years. Other Member States could also 
leverage past experience with energy audit programmes in other sectors.  

Practicalities around implementation of the measure 

2.4.3.7  Speed of implementation 

Measures supporting energy audits can be implemented within 6 months to 3 years, depending on their scope 
and  complexity.  The  speed  of  conducting  energy  audits  ultimately  depends  on  the  availability  of  trained 
auditors, while digital consultations can help accelerate the process.  

2.4.4  Case Study: Provision of external support  

Overview of the measure 

2.4.4.1  Objectives and scope of the measure 

Several  EU  Member  States  have  established  external  support  programmes  to  help  businesses  strengthen 
internal capacities for energy efficiency and decarbonisation. The primary objective of these measures is to 
enhance  companies’  internal  skills  and  awareness,  enabling  them  to  identify,  plan,  and  implement  energy-
saving  actions.  This  is  achieved  through  a  mix  of  awareness  campaigns,  technical  training,  energy  audits, 
advisory services, and strategic planning support. 

The scope of these programmes varies widely. Some focus on general awareness-raising and sector-specific 
training  -  such  as  Austria’s  Klimaaktiv  Betriebe  and  Cyprus’  annual  campaigns  -  while  others  offer  more 
structured  and  comprehensive  support.  France’s  PACTE  Industrie  programme,  for  example,  combines 
subsidised training (up to 80%), energy audits (up to 70%), and support for ISO 50001 energy management 
systems, complemented by strategic planning assistance and additional financial. 222 Sweden’s network-based 
model  also  promotes  long-term  collaboration  among  industrial  actors,  further  embedding  energy  efficiency 
practices within firms.223 

These measures collectively target a broad range of stakeholders, including SMEs, large companies, and in 
some  cases,  end  consumers,  aiming  to  close  internal  knowledge  and  capacity  gaps  that  hinder  effective 
energy management. 

221 Energy Auditing - Motiva 
222 Industriels, découvrez le programme PACTE Industrie | Entreprises | Agir pour la transition écologique | ADEME 
223 Energig - Energy efficiency networks 

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2.4.4.2  Geographic scope 

The measures described here are implemented in Austria, Cyprus, Finland, Sweden, and France, although 
other  European  countries  have  also  developed  support  programmes  targeting  SMEs  -  or,  more  broadly, 
businesses and consumers - in the areas of energy efficiency and renewable energy use. 

While all these initiatives share the common goal of promoting energy efficiency and decarbonisation, they 
differ in terms of delivery mechanisms, target groups, and the level of support provided. Some focus primarily 
on  awareness-raising  and  capacity-building  while  others  adopt  more  structured  approaches  with  financial 
support and a stronger emphasis on technical detail. 

2.4.4.3  Rationale, intervention logic and addressed barriers  

A  key  barrier  to  industrial  energy  efficiency  -  especially  among  SMEs  -  is  the  lack  of  manpower,  internal 
expertise and technical knowledge. These programmes aim to overcome this challenge by offering external 
support in the form of training, audits, and expert advice. By doing so, they help firms address informational 
and  organisational  barriers  that  often  hinder  the  identification  and  implementation  of  cost-effective  energy-
saving measures. 

For example, Cyprus organises a range of initiatives targeting a broad audience (not limited to SMEs) with the 
goal of raising awareness about energy efficiency opportunities and the adoption of renewable energy sources. 
These  initiatives  are  less  technical  in  nature  and  serve  primarily  to  establish  initial  contact  with  potential 
beneficiaries, guiding them toward available support schemes. 

A  similar  approach  is  taken  by  Finland’s  Regional  Energy  Counselling  programme,  which  is  directed  at 
consumers,  municipalities,  and  SMEs.  It  operates  on  the  principle  of  providing  an  energy  advisor  in  each 
Finnish  region.  These  advisors  deliver  support  through  various  channels,  including  personal  consultations, 
seminars, public meetings, and information campaigns.224 

France’s  PACTE  Industrie  exemplifies  a  more  technical  and  comprehensive  model,  combining  financial 
incentives  with  structured  training,  audits,  and  strategic  planning  support.  In  many  cases,  these  measures 
operate in synergy with financial support schemes, enhancing their reach and overall effectiveness.225 

Impact of the measure 

2.4.4.4  Expected impacts 

These programmes are generally effective in raising awareness, building internal capacity, or providing support 
for  energy  management.  However,  quantifying  their  precise  impact  remains  challenging  due  to  the  diffuse 
nature of soft measures such as information campaigns, training, and workshops. 

In Cyprus, for example, the implementation of soft measures is estimated to result in an energy consumption 
reduction of approximately 0.21 TJ.226 In Finland, as part of the Regional Energy Counselling programme, 465 
energy  consultations  were  conducted  within  the  first  five  months  of  2021.  A  follow-up  survey  among 
participants  indicated  an  estimated  impact  of  2,900  MWh/year  in  energy  savings  and  renewable  energy 
 per year.227 Free advisory services are available 
deployment, with a potential reduction of 900 tonnes of CO
to SMEs in key sectors such as food, technology, chemicals, tourism, and hospitality. More targeted support 
is also provided to firms participating in voluntary energy efficiency agreements. 228 

₂

In  Sweden,  participation  in  energy  efficiency  networks  has  shown  significantly  greater  results  compared  to 
standard audit support:  participating firms  achieved  energy savings of around 16%, compared to 3–9%  for 
firms not involved in the networks.229  

France’s PACTE Industrie is expected to deliver 1–2 TWh/year in energy savings. Although this represents a 
modest share of total industrial consumption, the measure is notable for its structured and strategic approach. 
It has been allocated a €49 million budget for the 2023–2026 period.230 

224 Regional energy councelling | Energiavirasto 
225 Industriels, découvrez le programme PACTE Industrie | Entreprises | Agir pour la transition écologique | ADEME 
226 Cyprus energy efficiency & Trends policies | Cyprus profile | ODYSSEE-MURE 
227 Regional Energy Councelling 
228 Free advice - Energy Efficiency Contracts 2017-2025 
229 Energig - Energy efficiency networks 
230 Industriels, découvrez le programme PACTE Industrie | Entreprises | Agir pour la transition écologique | ADEME 

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Public financial contributions generally cover the costs of producing and distributing informational materials, 
as well as organising training sessions and workshops. While France continues to invest significantly in such 
programmes, Sweden has phased out public subsidies for industry networks. Nonetheless, these programmes 
often operate in synergy with other policies (e.g., energy audits), enhancing their reach and reinforcing broader 
decarbonisation objectives. 

2.4.4.5  Scalability 

These  measures  are  highly  scalable.  Awareness  campaigns  and  training  programmes  can  be  expanded 
effectively  through  increased  budgets  and  targeted  outreach.  In  particular,  social  media  offers  an  efficient 
channel for engaging a wider audience, especially when conveying high-level, non-technical information that 
encourages participation and awareness. 

For  more  specific  forms  of  communication,  such  as  technical  training  and  workshops,  scalability  largely 
depends on financial resources and the availability of qualified technical advisors. Insights from a webinar with 
associations representing the small industry sector confirmed the importance of training, particularly for small 
enterprises. Language accessibility emerged as a critical factor, suggesting that these programmes should be 
implemented at the national level, or adapted to regional and local contexts where necessary. Cross-sector 
scalability is also high for these measures. Awareness-raising initiatives do not need to target the industrial 
sector specifically but can be effectively directed at households, businesses, and public entities. 

In the case of energy efficiency networks, the same webinar highlighted their positive impacts but also noted 
the importance of sector-specific organisation. Tailoring networks to specific industrial sectors ensures that 
participating firms receive relevant and actionable information. This aligns with the Swedish experience, where 
multiple networks were developed, each focused on a distinct sector such as aluminium or steel. 

Structured programmes like France’s PACTE Industrie are also scalable. Their expansion can be achieved by 
training more advisors and widening the scope of eligible participants. Components such as energy audits and 
ISO 50001 support can be extended to sectors beyond industry, further increasing the programme’s reach. 

2.4.4.6  Replicability 

External support programmes are easily replicable across EU Member States. Their modular design allows for 
adaptation to national contexts, taking into account differences in industrial structures, company sizes, and 
existing levels of technical capacity. Replication is particularly valuable in countries where SMEs represent a 
large share of the economy and where voluntary adoption of energy audits and management systems remains 
limited. 

Practicalities around implementation of the measure 

2.4.4.7  Speed of implementation 

The  implementation  timeline  varies  depending  on  the  programme’s  complexity  and  scope.  Awareness 
campaigns and training initiatives generally require 6 months to 3 years to design and launch. Awareness-
raising initiatives can be implemented relatively quickly and may benefit from the use of common online social 
platforms. In these cases, the main time requirement concerns the development of the content to be shared. 
Where  the  approach  involves  direct  engagement  with  targeted  stakeholders  –  such  as  through  in-person 
events – the organisation of such activities, including the necessary staffing, may take longer. 

The implementation of more structured programmes, such as France’s PACTE Industrie, requires additional 
time. This is necessary to establish an appropriate framework (typically based on regulatory provisions) that 
can manage applications, assess eligibility, and deliver the proposed funding and services. In such cases, it is 
essential to consider from the outset the availability of auditors and technical experts, relative to the expected 
volume of applications. A mismatch between supply and demand may lead to further delays in implementation. 

2.4.5  Case  Study:  National  investment  funds  supporting  research  and  innovation  (R&I)  and 

demonstration projects 

Overview of the measure 

2.4.5.1  Objectives and scope of the measure 

Member States have established these programmes to focus on supporting the development and deployment 
of  innovative  technologies  that  reduce  greenhouse  gas  emissions  and  improve  energy  efficiency.  The 

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measures  primarily  take  the  form  of  grants  and  subsidies,  targeting  new  technologies  ranging  from  the 
inception phase to the demonstration stage. The programmes aim to facilitate the large-scale deployment of 
new decarbonisation solutions. 

These investment programmes are designed to stimulate innovation and take up in a wide range of sectors 
and technologies, including low-carbon hydrogen, electrification of industrial processes, biomass-based heat, 
carbon  capture  and  storage  (CCUS),  and  circular  economy  solutions.  The  targeted  stakeholders  are 
companies (both SMEs and larger enterprises) as well as, in some cases, public entities involved in research 
around energy and environment (such as universities). 

National investment funds can be seen as complementary to broader EU-level funding instruments such as 
Horizon Europe or the Innovation Fund. These EU-level funds support projects with European added value 
and, in the case of the Innovation Fund, typically target technologies with higher technology readiness levels. 
In contrast, national funds often focus on technologies at earlier stages of development. This complementarity 
is reflected in the possibility for researchers and companies to access co-financing, obtaining support from 
both  EU  and  national  sources  (subject  to  specific  co-financing  rules),  as  well  as  in  the  broader  range  of 
initiatives that can receive financial support, whether from EU or national funds. 

2.4.5.2  Geographic scope 

These measures presented here are implemented in France, Germany, Ireland, and the Netherlands. While 
all  aim  to  support  industrial  decarbonisation,  their  approaches  differ  in  terms  of  technology  focus,  funding 
mechanisms, and administrative structures. These programmes may differ significantly in terms of research 
areas covered, grant size, total budget and technology readiness levels (TRL) supported. 

2.4.5.3  Rationale, intervention logic and addressed barriers  

A common barrier across Member States is the availability of innovative solutions to decarbonise industrial 
processes. In some cases, such solutions are  available but  are either too expensive to  be considered and 
implemented (and this may be particularly true for SMEs which have tighter budgets) or in the early stages of 
their  development,  which  require  additional  investment  for  the  testing  and  for  making  sure  technology  in 
question could have the desired impact. 

These  programmes  address  this  gap  by  providing  targeted  financial  support  to  de-risk  investments  and 
accelerate deployment. For instance, Germany’s Federal Funding for Industry and Climate Protection (BIK) is 
designed to focus on support of technologies that are in specific Technology Readiness Levels (TRL), as they 
are defined in EU regulations. Specifically, BIK supports technologies with TRL equal or higher than 4 (i.e., the 
technology has been tested in the laboratory) and TRL equal or lower than 8 (i.e., the system is complete and 
qualified). 231 

This approach is flexible and can be modified to suit specific industry conditions. Support programmes, such 
as  the  schemes  here  presented,  may  target  different  TRLs  depending  on  the  time  horizon  of  national 
objectives. For example, targeting lower TRLs may incentivise innovation in the first stages (i.e., research), 
where  results  are  potentially  far  in  the  future.  On  the  contrary,  where  decarbonisation  objectives  may  be 
stringent, support programmes can be designed to target innovations with higher TRLs (i.e., the development 
and deployment), that may need funding for the final stages of their testing and commercialisation at scale. 

Impact of the measure 

2.4.5.4  Expected impacts 

Being designed to support innovation and research, these programmes often do not come with specific targets 
in  terms  of  energy  or  emissions  savings.  As  an  exception,  Germany’s  BIK  programme  aims  to  reduce 
emissions by 40 million tonnes of CO2e by 2045.232 

Programmes  to  support  research  and  development  are  often  part  of  broader  programmes.  For  instance, 
Germany’s  BIK  programme  does  support  both  climate-friendly  investment  (in  industry)  and  research, 

231 FAQ | Competence Centre for Climate Protection in Energy-Intensive Industries (KEI) 
232  Federal  Funding  for  Industry  and  Climate  Protection:  Module  1  |  Competence  Centre  for  Climate  Protection  in  Energy-Intensive 
Industries (KEI) 

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development and innovation in industry.233  The same applies for France’s PEPR SPLEEN, as that is part of 
the broader France 2030 Plan.234 

Public  investment  varies  significantly  across  programmes.  France  allocated  €70  million  over  six  years  for 
PEPR SPLEEN.235 Germany has allocated €3.3 billion for BIK 236, covering both investment and R&D, running 
until 2030. In Ireland, the  National Energy RD&D Programme funded over 240 projects between 2018 and 
2023, with €75 million invested.237  In the Netherlands the DEI+ programme has supported around 400 projects 
since  2014,  with  €540  million  in  grants  that  coupled  with  private  investment  led  to  €1.76  billion  in  total 
investments in research.238 For the 2025, the programme has a budget of €175 million. 239 

Innovative  technologies  and  solutions  developed  as  part  of  these  projects  could  impact  other  sectors, 
industries,  or, more  broadly, communities. This is  due to the  potential for  adapting specific technologies to 
different uses and contexts, or to the creation of an innovative environment that incentivises research in related 
fields. 

While these measures are not directly linked to the EU Innovation Fund, national contact points, the designated 
entities in each Member State that provide support and information on the functioning of the Innovation Fund, 
usually offer guidance to interested companies, directing them towards the most suitable supporting initiative, 
whether national or EU wide, based on their needs and goals. 

2.4.5.5  Scalability 

These measures are scalable but should focus on technologies with high emissions reduction potential and 
readiness for deployment to maximise positive impacts in the short term. France’s and Germany’s programmes 
are structured to support research activities at different TRLs. These requirements can be adapted to match 
the situation in specific sectors, so that the funding is in line with the industry needs. 

All schemes here presented outline specific areas that are eligible for funding (e.g., clean hydrogen, energy 
infrastructure, etc), although these areas are subject to changes and can be expanded to include additional 
technologies as market conditions evolve. For example, in Ireland’s RD&D programme the topics for which 
funding is available are revised each year following cross-Government consultation run by the SEAI, which 
ensures that the funding is highly targeted.240 

Another way to increase the scale of national investment funds supporting R&I is to increase the amount of 
resources  to  be  dedicated  to  research,  while  still  conducting  checks  on  the  quality  of  the  projects  brought 
forward to ensure that the money is well placed. 

Additionally,  these  programmes  can  offer  support  before  an  application  is  submitted.  For  example,  the 
Netherlands’  DEI+  programme  offers  the  opportunity  for  stakeholders  to  discuss  their  project  idea  and  its 
feasibility.241 This ensures a  wider range of stakeholders can access these funding opportunities, including 
small and medium enterprises which may be less familiar with funding opportunities for research. 

2.4.5.6  Replicability 

These policies are highly replicable across the EU, particularly in countries with strong innovation ecosystems. 
Key  enablers  for  replication  include  sufficient  public  funding,  administrative  capacity,  and  alignment  with 
national climate strategies. France’s emphasis on coordination between national and EU funding could serve 
as a model for other Member States seeking to maximise the impact of public investment. 

Practicalities around implementation of the measure 

2.4.5.7  Speed of implementation 

The  speed  of  implementation  varies  across  Member  States,  depending  on  programme  design  and 
administrative readiness. France’s PEPR SPLEEN was launched in 2023 and began mobilising projects within 

233 Bundesförderung Industrie und Klimaschutz: Modul 1 | Kompetenzzentrum Klimaschutz in energieintensiven Industrien (KEI) 
234 PEPR Spleen - PEPR Spleen 
235 National research programme Decarbonisation of the industry (PEPR SPLEEN) | CNRS 
236 Federal Funding for Industry and Climate Protection (BIK) | FI Group 
237 Ireland’s integrated National Energy and Climate Plan 2021-2030 
238 Demonstration of Energy and Climate Innovation (DEI+) | RVO.nl 
239 DEI+: Energy and Climate Innovations | RVO.nl 
240 Ireland’s integrated National Energy and Climate Plan 2021-2030 
241 DEI+: Energy and Climate Innovations | RVO.nl 

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the same year, reflecting a relatively swift setup for a research-focused initiative.242 Germany’s BIK programme 
was launched in August 2024, with the deadline for applications being the 30 November 2024 for the first call. 
Results of the initial review were shared in February 2025. Successful candidates have time until May 2025 to 
submit full applications, with approval notifications expected by the end of September 2025. 243 Ireland’s SEAI 
RD&D programme operates on an annual cycle, enabling rapid deployment of funds within months of each 
call.244,245 

The actual implementation time of these measures should take into account not only the time needed to set 
up the system for collecting, evaluating, and approving funding requests, as well as the systems for disbursing 
subsidies and performing anti-fraud checks, but also the time required for the supported research projects to 
deliver their results. The innovative technologies/solutions must then be deployed in order to generate their 
effects, with timelines that vary significantly depending on the type of solution. 

As mentioned earlier, one way to increase the likelihood that these measures will have an impact in the short 
to medium term is to concentrate significant resources on technologies that are already at an advanced stage 
of research, but still require additional support for the final phases of testing and/or commercialisation. 

3.  HIGH POTENTIAL MEASURES FOR THE FUTURE 

This section identifies three measures, of which two were discussed in detail during the workshop with key 
stakeholders on the 6th May 2025 for the Buildings sector. These measures are considered to have significant 
potential  and  represent  promising  approaches.  There  remains  a  need  to  obtain  more  information  on  the 
measures, as well as on their replicability and effectiveness in reducing emissions. 

During the webinar, the importance of addressing the social and distributional aspects of decarbonising the 
buildings sector was highlighted, along with the challenges posed by renovations in condominiums due to split 
incentives – challenges that these two selected high-potential measures could at least partially address. 

The third measure (on the importance of developing cycling infrastructure to incentivise modal shift) was added 
due to the importance attributed to modal shift in the decarbonisation process. Although such measures may 
have limited effects in the short term, they can produce a significant impact by encouraging more sustainable 
modes of transport, and producing a number of co-benefits, such as reduced air pollution and improved health 
conditions. 

3.1.1  Leasing of heat pumps 

A  potential  best  practice  measure  for  the  future  is  the  (social)  leasing  of  heat  pumps.  Currently,  several 
European countries have implemented measures aimed at encouraging the replacement of heating systems 
powered  by  fossil  fuels  with  more  efficient  and  environmentally  friendly  alternatives,  such  as  heat  pumps. 
These support measures range from financial aid for the purchase and installation - where the purchase is 
subsidised by local or national governments through grants or low-interest loans 246 - to initiatives focused on 
increasing  public  awareness  of  heat  pumps  and  addressing  reputational  issues  that  hinder  their  broader 
adoption. 

Leasing is a potential solution because it helps overcome one of the main barriers to wider deployment, which 
is  the  high  upfront  investment  required  to  purchase  and  install  a  heat  pump.247  Leasing,  or  a  general 
subscription-based model, eliminates this initial financial burden for the consumer by allowing the installation 
costs to be spread over time. It also guarantees access – ensured through contractual agreements – to regular 
maintenance of the equipment. Furthermore, the flexibility of the leasing model allows it to be used in both the 
building sector, for heating and cooling residential and commercial buildings, and in the industrial sector, where 

242 PEPR Spleen - PEPR Spleen 
243 New Funding Policy for Germany’s Carbon Management Strategy 
244 Ireland’s integrated National Energy and Climate Plan 2021-2030 
245 Research, Development & Demonstration Fund | Research Funding | SEAI 
246 Heat pumps on subscription | ClimateXChange 
247  Preferences  of  homeowners  for  heat-pump  leasing:  Evidence  from  a  choice  experiment  in  France,  Germany,  and  Switzerland  - 
ScienceDirect 

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up to 37% of heat demand could potentially be met by heat pumps.248 A study conducted in France, Germany, 
and Switzerland revealed varying levels of preference for leasing over purchasing a heat pump. In Switzerland, 
only one in three households would opt to lease a heat pump, a figure that rises to nearly one in two in France, 
and up to two in three in Germany. According to the study’s authors, leasing could be particularly appealing in 
contexts where the low market penetration of heat pumps is combined with concerns about their reliability and 
performance.249  

The social aspect of leasing involves increased attention to low-income groups, with governments potentially 
covering part or all the leasing costs, integrating government support directly into leasing contracts. This could 
be easily implemented, by subsidising the lease fee, which can also be adjusted based on the beneficiary’s 
income.  

Another advantage of leasing is its ability to offer a certain level of cost predictability. Furthermore, unlike other 
schemes (such as on-bill financing), this model shifts the risk away from the heat pump user (i.e., the household 
or company). The leasing company takes on responsibility for the system’s performance and maintenance. 
This  can  be  particularly  useful  in  contexts  where  households  and  businesses  have  doubts  about  the 
performance and reliability of heat pumps. 

The big question for (social) leasing and similar financing models is who is paying and guaranteeing to buy the 
stock of appliances to be paid overtime in e.g. a special purpose vehicle or similar (startups obviously cannot 
put  this  on  their  balance  sheets  and  manufacturers  do  not  want  to  do  it  either).  The  rest  are  details  to  be 
calibrated among the main disadvantages of this solution are the contractual challenge of managing payment 
defaults. As with any heat pump installation, there is a need for installers. An increased deployment of heat 
pump  calls  targeted  education,  training  and  upskilling  initiatives  and  all-in  business  models  that  integrate 
appliance, installation and maintenance.  

This  measure  could  represent  a  promising  best  practice  for  the  future;  however,  it  has  not  yet  been 
implemented in practice in its social version, and its actual effectiveness will need to be assessed once pilot 
schemes or broader applications are launched. 

3.1.2  Carbon Dioxide Sharing Act 

The Carbon Dioxide Cost Sharing Act is a measure implemented in Germany on January 1st, 2023. Under the 
Fuel Emissions Trading Act (BEHG), utility companies that import and distribute fossil fuels are required to pay 
a carbon price. This cost is typically passed on to end consumers, in the building sector resulting in higher 
expenses for heating and hot water. 250 The Carbon Dioxide Cost Sharing Act addresses this by introducing a 
mechanism  that  allocates  these  carbon  costs  between  landlords  and  tenants,  depending  on  the  energy 
efficiency of the building. 

 costs follows a ten-
For residential buildings and buildings that are mainly residential, the allocation of CO
stage model based on the building’s annual emissions per square meter of living space. Landlords are required 
  costs  and  the  distribution  key  as  part  of  the  annual  heating  cost 
to  calculate  and  disclose  both  the  CO
statement. In buildings emitting more than 52 kilograms of CO
 per square meter annually the landlord must 
cover 90 percent of the carbon costs, with the tenant responsible for the remaining 10 percent. Conversely, in 
₂
energy-efficient buildings emitting less than 12 kilograms of CO
 per square meter per year, the tenant bears 
  cost.251  If  the  tenants  are  directly  responsible  for  procuring  the  fuel  they  are  entitled  to  claim 
the  full  CO
reimbursement from their landlord. The claim must be submitted within twelve months from the date of the 
supplier’s final invoice for the delivered fuels.252 

₂

₂

₂

₂

The rationale behind this system is twofold. First, if CO2 costs increase it incentivises landlords to invest in 
improving the energy efficiency of their properties, as they bear a larger share of carbon costs for inefficient 
buildings. Second, when buildings are already energy-efficient, tenants - who are responsible for the full carbon 
cost - are encouraged to adopt energy-saving behaviours to manage their heating and hot water expenses. 
With regard to the challenges associated with this measure, the incentive to renovate buildings has been low 

248 A visual explainer: how industrial heat pumps power net-zero industry – European Heat Pump Association 
249  Preferences  of  homeowners  for  heat-pump  leasing:  Evidence  from  a  choice  experiment  in  France,  Germany,  and  Switzerland  - 
ScienceDirect247247. 
250 New Costs For Landlords Due To Carbon Dioxide Cost Allocation Act | Insights & Resources | Goodwin 
251 The CO2 Cost Sharing Act - Relief for Tenants - KPMG-Law 
252 Ibid. 

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so far, due to the low CO2 costs. Regarding the replicability, implementing this approach in other countries 
may be challenging due to substantial differences in rental legislation and housing markets. Additionally, the 
interaction with existing national policies must be carefully assessed to avoid unintended consequences. One 
such risk is circumvention: landlords might respond by increasing rents, thereby transferring the carbon cost 
burden back to tenants without making meaningful energy efficiency improvements. Addressing such risk may 
require the implementation of additional measures, designed to align with the country-specific context. 

Nonetheless, the German model shows promise. By balancing economic responsibility between landlords and 
tenants while encouraging behavioural and structural changes, it presents a potentially equitable and effective 
mechanism. If successfully implemented and adapted to local contexts, it may serve as a best practice for 
climate policy in the residential building sector. 

3.1.3  Cycling infrastructure development in Bordeaux and target setting 

As part of their efforts to decarbonise the transport sector, many cities are working to encourage a modal shift 
toward more sustainable modes such as public transport and bicycles. In Europe, several cities have already 
achieved significant results. For example, Copenhagen and Amsterdam have long been recognised as global 
leaders  in  cycling  infrastructure  and  culture.  In  recent  years,  and  especially  in  response  to  the  COVID-19 
pandemic,  many  urban  centres  have  accelerated  their  investment  in  cycling  infrastructure.253  Cycling  is 
increasingly viewed as a key tool for climate action, particularly given that transport is responsible for around 
29% of all GHG emissions in the EU, with road transport being the largest contributor. While bicycles are not 
completely emission free over their full life cycle, due to the impacts of production, maintenance, disposal, and 
batteries in electric bikes, studies estimate that life cycle emissions from cycling are approximately 90% lower 
per passenger kilometre than those from private cars.254 255 Despite these measures potentially affecting only 
a fraction of total urban transport (at least in the short term), the difference in emissions between bikes and 
cars could still lead to a significant reduction in overall emissions. 

Across the EU, many cities have increased their efforts to promote cycling as an alternative to private cars. 
For example, Bordeaux (where road transport accounts for a quarter of GHG emissions and two-thirds of the 
urban air pollution256) has embarked on a structured path to promote cycling, also participating in the European 
Union CIVITAS Handshake project, which supports cities of all sizes in improving cycling infrastructure and 
communication strategies. 

Since then, the city has undertaken a broad range of investments. More than 15,000 bike racks have been 
installed since 2020, alongside the introduction of new services such as bike sharing systems, loan services, 
repair stations, and targeted communication campaigns.257 One particularly ambitious goal is to increase 
the modal share of cycling in the metropolitan area258 to 18 percent by 2030, up from 8 percent in 2023 
and just 4 percent in 2009. Central to Bordeaux’s strategy is the development of a dedicated cycling network 
called the Réseau Vélo Express, or ReVE. This consists of 14 main cycling corridors covering a projected 272 
kilometres of protected, continuous lanes with dedicated signage and safety measures. These main routes are 
complemented by local cycle infrastructure and services. In the metropolitan area, over the past four years, 
more than 36 kilometres of new cycle lanes have been added. Between 2020 and 2024 alone, the number of 
cyclists in Bordeaux increased by 29 percent.259 

The  Bordeaux  model  illustrates  how  a  comprehensive  approach  combining  infrastructure  improvements, 
especially the continuity and safety of bike paths, parking facilities, integration with other transport modes both 
public and private, and sustained communication, can lead to tangible shifts in travel behaviour. 

Importantly, the positive effects of increased cycling go beyond emissions reduction. Active mobility contributes 
to  improved  air  quality,  reduced  urban  congestion,  and  better  public  health  outcomes,  thanks  to  increased 
levels of physical activity. A study on active commuters analysed health benefits on a sample of around 82 
thousand people, and found that cyclist commuters are associated with a 47% lower risk of death from any 
cause, 10%  lower risk of  any hospitalisation, 24%  lower risk of hospitalisation for cardiovascular diseases 

253 The great bicycle boom of 2020 
254 The climate change mitigation effects of daily active travel in cities - ScienceDirect 
255 Ökologische Bewertung von Verkehrsarten - Ecological assessment of different types of transport 
256 Vélo et marche : des modes de déplacement doux dans une ville apaisée | Site de la ville de Bordeaux 
257 Bordeaux, une ville apaisée et piétonne : un nouveau modèle de mobilité urbaine 
258 The modal share of cycling in Bordeaux was 13%, as of 2023. 
259 Ibid. 

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(CVD) and 30% lower risk of receiving a CVD related prescription, 24% lower risk of cancer hospitalisation , 
51%  lower  risk  of  cancer  death,  and  a  20%  lower  risk  of  receiving  a  mental  health  related  prescription. 260 
These health and environmental co-benefits make cycling both a climate solution and a way to create healthier 
and more liveable cities. 

260 Health benefits of pedestrian and cyclist commuting: evidence from the Scottish Longitudinal Study | BMJ Public Health 

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4.  ANNEX 1- DETAILED METHODOLOGICAL APPROACH 

Annex 1 provides an in-depth summary of the methodological approach to the study. Including the initial steps 
taken to identify key challenges and barriers, along with actions to prioritise this list. The process behind the 
collection of a long  list of  measures corresponding to selected  challenges/barriers, under subsection 4.2 is 
also  outlined  in  detail,  followed  by  key  stakeholder  engagement  activities  used  to  verify  the  ranking  of 
measures  by  sector  experts  in  subsection  4.3  and  the  final  development  process  of  the  best  practices  in 
subsection 4.4. 

4.1  IDENTIFICATION OF CHALLENGES AND BARRIERS 

Initially desk-based research was undertaken to collect a large list of barriers and challenges to decarbonise 
the sectors covered by ETS2, namely road transport, buildings, and other sectors (small industry <20MW). In 
total 82 challenges/barriers were identified in the long list.  

This culminated in a workshop with internal sector experts from Ricardo and Oeko-Institut to identify the most 
actionable challenges in the short term (3-5 years). The workshop also presented an opportunity to discuss 
any potential missed barriers/challenges for each of the sectors covered by ETS2.  

The aim of step 1 was to present the prioritised challenges/barriers were presented in systems maps (one for 
each  subsector)  with  up  to  3  main  barriers/challenges  per  system  map,  ~3  systems  map  per  sector  – 
culminating in up to 27 challenges to be taken forward in Step 2 of the assessment. While there are a larger 
number of barriers and challenges to promote decarbonisation in the ETS2 sectors, the aim was to take 3 main 
barriers/challenges forward to condense the number of applicable measures, in-line with the final objectives 
of the study to develop 21 best practices. 

Based  on  the  research  for  challenges  and  barriers  carried  out,  the  number  of  actionable  challenges  and 
systems  maps  is  spread  slightly  differently  across  the  sectors.  In  total  there  are  7  systems  maps  with  82 
identified challenges across the main ETS2 sectors (although this includes some repetition across subsectors). 
A priority list was drawn from this long list of barriers and challenges during a workshop with internal expert. 
The list of 31 prioritised barriers and challenges are highlighted in Table 4-1 below. 

For  transport  there  were  9  prioritised  challenges/barriers  identified  across  2  systems  maps:  Personal 
Transport/Modal Shift and Freight Transport. For buildings there were 12 challenges/barriers identified across 
2  systems  maps:  Low  carbon  heating  –  heat  pumps  and  Energy  demand.  For  industry  there  are  10 
challenges/barriers identified across 3 systems maps: Willingness, Feasibility and Regulation.  

Table 4-1 Prioritised barriers and challenges 

Sector 

Systems map 

Prioritised challenge/barrier 

•  Significant  remaining  lifetime  of  existing 

stock 

•  Higher TCO of EVs 
•  Lack of EV charging infrastructure 
•  Significant  remaining  lifetime  of  existing 

Personal Transport/modal shift 

stock 

Road Transport 

Freight Transport 

•  Misinformation and poor perception of EV 

performance 

•  Relatively  high  cost  of  using  public 

transport 

• 

Insufficient supply of public transport 

•  Lack of knowledge on fuel efficient driving 
•  Lack of interest 

o  Higher TCO of EVs 
o  High up-front costs of EVs 

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Sector 

Systems map 

Prioritised challenge/barrier 

•  Lack of EV charging infrastructure 

Buildings 

Industry 

Switch to low carbon heating 

Energy demand reduction 

Willingness 

Feasibility 

Regulation 

•  Private value for money 
•  High up-front costs 
•  Poor payback periods 
•  Lack of/split incentives 
•  Reactive 

rather 

than 

proactive 

investments 

•  Reputation and information 

•  High age of building owners 
•  Lack of (or split) incentives 
•  High up-front costs 
•  Private value for money 
•  Poor payback periods 
•  Lack  of  awareness  of  possible  energy 

savings 

•  Perceived impact on product quality 
•  Long payback periods 
•  Policy and value-for-money uncertainty 
•  Private cost effectiveness 

o 
Insufficient incentives 
o  Costly period of downtime 

Internal funding challenges 

• 
•  Lack of internal skills and awareness 
•  Actual risk of impact on product quality 
•  Lack/low 

technological 
alternative technologies 

readiness  of 

•  Regulated processes 
•  Regulatory barriers to fuel switching 

The systems maps presented a visualisation of the dominant dynamics affecting the investment environment. 
These  maps  included  barriers  towards  decarbonisation  and  an  initial  small  list  of  measures  that  had  been 
identified to address them. In some cases, risks that  could  potentially hinder efforts, and benefits that may 
have  encouraged  decarbonisation  irrespective  of  measures  were  also  included.  The  systems  maps  are 
included in Figure 4-2 to Figure 4-9, below.  

In  the  figures,  nodes  are  connected  by  arrows  indicating  direction  of  influence,  colour  coded  according  to 
positive or negative impact on the outcome, with all nodes eventually leading to the central node. A central 
theme relating to decarbonisation of the sector sits at the centre, this may be a particular goal (such as modal 
shift of transport) or a theme relating to the type of barriers (such as willingness to decarbonise industry). This 
is surrounded first by barriers/challenges to decarbonisation of the sector directly relating to the central theme. 
Where a barrier contributes toward another, broader barrier, it feeds into that barrier rather than directly into 
the central node. Identified measures are then added to the periphery, feeding into all different barriers they 
address. Finally, where relevant, risk and benefits were added. Where possible, similar barriers are placed in 
proximity  (e.g.  grouping  all  measures  relating  to  Electric  Vehicles  in  the  transport  sector).  A  key  for  the 
diagrams is shown in Figure 4-1 below. 

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Figure 4-1 Key for systems map diagrams 

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The  systems  map  for  freight  transport  in  the  transport  sector  is  presented  below.  The  systems  map  shows  the  full  map  of  barriers  and  challenges  identified  and 
associated measures identified in the internal workshops. 

Figure 4-2 Barriers systems map - Freight transport 

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The systems map for personal/modal transport shift in the transport sector is presented below. The systems map shows the full map of barriers and challenges, and 
associated measures identified by sector experts in the internal workshops.  

Figure 4-3 Barrier’s systems map - Personal transport/Modal shift 

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The systems map for low carbon heating in the building sector is presented below. The systems map shows the full map of barriers and challenges, and associated 
measures identified by sector experts in the internal workshops.  

Figure 4-4 Focussed barriers systems map - Low carbon heating (Heat pumps for buildings) 

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The systems map for Energy demand in the building sector is presented below. The systems map shows the full map of barriers and challenges, and associated 
measures identified by sector experts in the internal workshops.  

Figure 4-5 Focussed barriers systems map – Energy demand for buildings 

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The systems map for Willingness in the Industry sector is presented below. The systems map shows the full map of barriers and challenges, and associated measures 
identified by sector experts in the internal workshops.  

Figure 4-6 Focussed barriers systems map – Industry (willingness) 

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The systems map for Feasibility in the Industry sector is presented below. The systems map shows the full 
map  of  barriers  and  challenges,  and  associated  measures  identified  by  sector  experts  in  the  internal 
workshops. 

Figure 4-7 Focussed barriers systems map - Industry (Feasibility) 

The systems map for the Regulation in industry is included below. Only one map is included for this thematic 
area as there were only two barriers to include, both of which were identified as key barriers in the internal 
workshops. 

Figure 4-8 Focussed barriers systems map - Industry (Regulation) 

4.2  IDENTIFICATION OF SUPPORTING MEASURES 

During Step 2 of the process key supporting measures across EU27 that can be implemented in the short term 
and have an impact in decarbonising EU ETS2 sectors (with a 2030 horizon) were identified and classified. 
The data collection to identify the measures was directly linked with the barriers/ challenges to decarbonisation 
in the sectors, identified in Step 1. To identify supporting measures, desk-based sources which cover multiple 

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EU MSs, and provide best practice measures or examples to address identified barriers were systematically 
reviewed. The main source for the identification of supporting measures in the initial phase was the Odyssee-
Mure database. The platform is coordinated by ADEME with technical support from Enerdata and Fraunhofer, 
and  is  supported  by  the  LIFE-CET  programme  of  the  European  Commission.  The  database  is  regularly 
updated by national teams once or twice a year.  

To test and validate the identified measures from the desk research, add any novel measures implemented by 
Member States that have potential to be implemented effectively across the EU, and fill any existing data gaps, 
the project team held 9 interviews with selected industry experts and associations. 

Figure 4-9 Interview list with selected experts under step 2 

Organisation 

Area of Expertise 

T&E 

Transport, freight, electric vehicles, new types of mobility  

Union Internationale des Transports Publics 
(UITP) 

Public Transport 

BEUC 

ICCT 

Consumer  perspective  on  measures  to  decrease  carbon  emissions  in 
transport 

CO2 mitigation in road transport (personal/freight transport) 

European Heating Industry (EHI) 

Heat Pumps 

Eurima (European Insulation Manufacturers 
Association) 

Insulation 

Euroheat & Power (EHP) 

District heating and cooling energy 

EURelectric 

Electricity Industry 

Carbon Market Watch 

Carbon Markets 

The long list of measures identified as part of Step 2 can be found in Annex 2. 

4.3  ADDITIONAL DETAILS ON THE MEASURES INCLUDED IN THE LONG LIST. 

The  aim  of  step  3  was  to  collect  additional  details  on  the  measures  collected  in  Step  2,  drawing  from  an 
expanded list of sources. The information collected was later used in Step 4 to compare the measures across 
a range of criteria and consequently refine the list of measures through a ranking process to a final list of 21. 
The  information  collected  included:  affected  stakeholders,  expected  impacts  and  details  affecting 
implementation and delivery. The list of measures was also sent to the respective Member States that they 
were associated with, to provide their views on the measures and provide any additional information from up-
to-date sources. 

4.4  ASSESSMENT OF THE PRIORITISED MEASURES 

4.4.1  Ranking of the long list of measures 

The 21 best practice measures were selected by ranking the long list of measures through a 2-tier approach 
as well as a stakeholder webinar on the 6th of May 2025. In the first round, measures that were mandated by 
the EU legislation and have no additional element to them from a national perspective were removed, as well 
as  those  with  insufficient  information  to  qualify  them  clearly  as  best  practices.  In  the  second  round,  the 
measures were ranked according to the criteria in Table 1-1, which left 5 prioritised best practices and 5 reserve 
measures for each sector. 

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4.4.2  Key stakeholder webinars 

The top 10 measures for each sector were taken forward and presented in 3 webinars on the 6th of May 2025 
(one for each sector). Member State representatives, departments from the European Commission and key 
European stakeholders were invited to share their views on the ranked measures. Based on the results of the 
webinars,  a  total  of  10  measures  were  cut  across  all  three  ETS2  sectors,  resulting  in  the  final  list  of  20 
measures  to  be  developed  into  case  studies.  One  additional  measure  was  subsequently  added  after  the 
webinar, bringing the total to 21 measures. Details on each of the webinars are shared here: 

4.4.2.1  Road transport 

Attendees: 

•  78 participants (incl. 20 COM, EEA, consultants). 
•  11 stakeholders as panellists (CLECAT, Carbon Market Watch, Eurelectric, UITP, T&E, E-Mobility 
Europe,  Charge  Up  Europe,  POLIS,  ICCT,  LeaseEurope,  BEUC)  and  experts  from  18  Member 
States. 

Key outcomes: 

•  Many alluded to the importance of the CO2 standards for vehicles as a key driver to uptake EVs. 

•  Bonus malus and tax incentives for new vehicles are considered effective measures. 

•  Price  transparency  for  public  charging  should  also  encompass  clarity  on  the  functioning  of  charge 

points, and easy payment structures.  

•  Tolling reform is a welcomed measure and helps to reduce the relative cost of EVs compared to ICE 

vehicles. 

•  Financial and fiscal incentives are good for alleviating the up-front cost of EVs. Financial support must 

come before other measures, e.g. quotas.  

•  Financial incentives should also support charging infrastructure. 

•  Streamlining and harmonising administrative processes for grid connections was noted as a clear best 

practice. This should also encompass improvement of permitting procedures. 

•  Tax deductibility as a measure does not help low-income families. 

•  Car centric model should be complemented with a multi modal approach. This includes more public 
transport,  alternative  solutions  for  car  sharing,  carpooling  and  so  on.  Low-income  households  can 
benefit from sufficient alternatives to combustion cars. 

•  The lack of second-hand market for EVs is creating problems for the good functioning of the leasing 

market for EVs. 

•  ZEV quotas for company fleet renewals – This measure could be a measure for the future. For the 

moment reducing the cost of EVs and grid infrastructure improvements are more important. 

4.4.2.2  Buildings 

Attendees: 

•  76 participants (incl. 22 COM, EEA, consultants). 
•  9 stakeholders as panellists (Coalition for Energy Savings (also representing BPIE), Eurima, Carbon 
Market Watch, EFIEES, Eurelectric, EHI, Efficient Buildings Europe, BEUC, Euroheat and Power) and 
experts from 17 Member States. 

Key outcomes: 

•  Reducing  electricity  prices  relative  to  gas  prices  –  Electricity  price  depends  on  multiple  factors: 
production,  network  costs,  taxation  and  other  factors.  Careful  consideration  is  required  to  consider 
how direct support is administered on electricity bills or reallocation of costs. 

•  Reducing information gaps (particularly around heat pumps) is needed, as well as support to energy 
efficiency upgrades. Increasing information/One Stop Shops were strongly supported measures.  

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• 

It is important to focus on measures that address vulnerable groups and overcoming split incentives. 
Tenant vs Landlord. The Carbon Dioxide Cost Sharing act would be a good future measure. This can 
be done both with SCF and use of ETS revenues more broadly. 

•  Tax reductions for EE renovations are good and should be focussed for middle income households. 

While subsidies are better for low-income households. 

•  Tax reductions have less bureaucracy issues than subsidies. There needs to be caution that the 
benefits do not go to the installer of heat pumps (such that they push up their prices to cover 
the gains of the tax break). 

• 

Interest free loans are a very good measure. 

o  Zero-interest  loans  are  difficult  to  implement  in  condominiums,  given  split  incentives. 
Condominiums themselves are not legal entities so they cannot access loans. They are also 
often made up of low-income households – but don’t count as one. 

•  Minimum Energy Performance Standards for worst performing buildings in the rental sector could be 

considered. It addresses split incentives. 

•  Subsidies for building renovations need to be staged deep renovation, and there needs to be a good 

ratio between costs and CO2 savings.  

• 

In general, for drafting of all case study measures, a preferred target group should be added as an 
element of guidance on measures/scheme. E.g. tax breaks for higher income household’s vs subsidies 
for low-income households. 

•  Financial measures should be designed in such a way that there is sufficient stability in the incentive 
schemes (whether it be subsidies, tax reductions or others) and that they remain in place for a long 
period. 

4.4.2.3 

Industry 

Attendees 

•  37 participants (incl. 12 COM, EEA and consultants). 
•  3 stakeholders as panellists (FoodDrinks EU, Eurelectric, Cepi) and experts from 13 MS. 

Key outcomes: 

•  Direct funding measures such as grants and subsidies for demonstration projects are good, although 

scalability will ultimately depend on national budget constraints. 

•  Language is still a relevant barrier, so support activities should be implemented at the national level – 

particularly with regards to training, awareness raising and audits. 

•  Energy  Saving  Loans  and  Green  Loans:  overall  good  measure,  if  measure  stability  is  granted. 

Measures should be stable and last for a number of years in order to be effective. 

•  Measures around smart meters/digitalisation and promoting the role of flexible energy consumption 

and consuming outside of peak hours. 

•  The main challenge for industry is to have awareness for available schemes and resources to submit 

for funding. 

•  Capacity  and  technical  expertise  are  needed  to  support  SMEs  with  the  decarbonisation  process. 

Industry associations and SME associations can play a supporting role. 

•  There are many existing networks for small companies where they can get support for greening. We 
should build on those rather than increase the number of networks. SMEs need one-stop shops. One 
example at European level is the Enterprise Europe Network. 

•  Energy efficiency networks can be successful, but information must be sector specific and constant to 

maintain interest.  

•  Financial support should preferably come through multiple routes (subsidies, loans, grants etc). 

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4.5  CASE STUDY DEVELOPMENT 

An expanded description of Step 5: Case study development, is included under Section 2 of the report, which 
provides an expansion of the case studies which have been developed into best practice. Member States can 
take  inspiration  from  these,  to  implement  similar  measures  themselves  to  promote  effective  long-term 
decarbonisation in the ETS2 sectors, with short-term initial impact (3-5 years). The shortlist of 21 developed 
case studies is included in Table 2-1. 

5.  ANNEX 2 – LONG LIST OF MEASURES 

Annex 2 provides details of the long  list of  measures  collected during  Step 2 of  the assessment, with their 
corresponding  prioritised  barriers.  A  summary  of  the  measures  is  provided  in  Table  5-1  below  followed  by 
tables for each of the measures with further details. 

It should be noted that the 21 best practice measures do not perfectly match the long list of measures that 
were assessed in early stages of the work. Some of the measures have been combined and in other cases 
renamed or partially rescoped based on consultation with the Member States and experts who participated in 
the Webinar on 6th May 2025. 

Table 5-1 Summary of long list of measures 

No.  Challenge 

Freight Transport 

Name of the supporting 
measure 

Geographical 
scope 

Category/type of 
measure 

1 

2 

3 

4 

5 

6 

7 

for 
Focussed  subsidies 
purchase  and  leasing  of 
ZE HDVs 

Financial instruments 
aside from purchase 
subsidies - Ireland tax 
break and amortisation 

ZEV up-front cost 

Financial 
aside 
subsidies  –  ECO 
Slovenia 

instruments 
purchase 
fund 

from 

Financial 
grid 
charging 
(national 
Germany 

connection 

incentives 

for 
of 
infrastructure 
- 
regional) 

/ 

Concerns  over  charging 
infrastructure  and  grid 
connection 
(including 
costs) 

Financial 
grid 
charging 
(national 
France 

connection 

incentives 

for 
of 
infrastructure 
- 
regional) 

/ 

Financial 
grid 
charging 
(national 
Ireland 

connection 

incentives 

for 
of 
infrastructure 
- 
regional) 

/ 

Financial 
grid 
charging 

connection 

incentives 

for 
of 
infrastructure 

NL 

IE 

SL 

DE 

FR 

IE 

ES 

Financing 
grants/subsidies 

- 

Financing 
loans/loans 

- 

Soft 

Financing 
loans/loans 

- 

Soft 

Financing 
grants/subsidies 

Financing 
grants/subsidies 

Financing 
grants/subsidies 

Financing 
grants/subsidies 

- 

- 

- 

- 

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No.  Challenge 

8 

9 

10 

11 

12 

High 
comparative 
operating  cost  of  ZEV 
options 

Personal transport/modal shift 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

High  up-front  costs  of 
ZEVs 

incentives 

for 
Lack  of 
modal  shift  away  from 
cars 

Support  for  commercial 
entities  to  adopt  EVs  for 
their fleets 

to 

Access 
public 
infrastructure 

affordable 
charging 

Name of the supporting 
measure 
(national 
Spain 

regional) 

/ 

- 

Credits 
charging infrastructure 

for 

private 

Geographical 
scope 

Category/type of 
measure 

DE 

Financing  –  credit 
mechanism 

Anticipatory investments 

FR, DE. LT 

and 

Streamlining 
harmonising 
administrative  processes 
for grid connections 

Eurovignette 
tolling 
HDVs. 

in 

– 

Truck 
favour  of  ZE 

NL, UK 

DE 

Regulation 
standards 

Regulation 
standards 

& 

& 

Financing  – 
mechanism 

tolling 

Tax 
ownership of EVs 

incentives 

for 

DE, IT, LV 

Financing 
incentives 

- 

Tax 

FR 

PL 

Financing 
grants/subsidies 

Financing 
grants/subsidies 

- 

- 

FR,  NL,  AT, 
DEN,  SE,  BE, 
NO 

Financing 
incentives 

- 

Tax 

Social leasing 

Subsidies based on social 
including 
criteria, 
scrappage schemes 

Emission based taxes and 
tolls  (bonus-malus).  Tax 
advantaged  for  ZEV  and 
malus for ICEV 

Reduced  and  simplified 
for  public 
ticket  pricing 
transport    

Urban  transport  planning 
- 
towards  modal  shift 
Superblock model 

NL, AT 

AT, DE, ES 

On-demand transport 

BE, DE, ES, NL 

Tax deductibility for ZEVs  BE 

Taxation  of  private  use  of 
company cars 

BE, AT 

ZEV  quotas  on  company 
fleets renewals 

FR 

e-mobility 

Minimum 
infrastructure 
requirements  at  buildings, 
parking spaces 

DE, BE. FR 

Non-discriminatory access 
to 
charging 
public 
infrastructure 

EU 

Regulation 
standards 

Regulation 
standards 

Regulation 
standards 

Financing 
incentives 

Financing 
incentives 

Regulation 
standards 

Regulation 
standards 

Regulation 
standards 

& 

& 

& 

- 

- 

Tax 

Tax 

& 

& 

& 

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No.  Challenge 

Name of the supporting 
measure 

Geographical 
scope 

Category/type of 
measure 

24 

25 

Fair  allocations  of  public 
charging 
land 
for 
infrastructure 
and 
prevention  of  monopoly 
formation 

DE 

Regulation 
standards 

transparency 

Price 
public charging 

for 

EU. DE 

Regulation 
standards 

Renewable-Based & Renewable-Ready heating technologies 

Skills scarcity 

Lack  of  incentives  (Split 
incentives) 

Private  value  for  money 
(high up-front costs) 

Financing 
grants/subsidies 

Awareness,  technical 
support and training 

DE 

DE 

Upgrading 
Training 
Assistance Act (Aufstiegs-
BAföG) 

Image campaign to attract 
young  talent  to  the  skilled 
trades 

Mandatory  energy  and 
carbon  requirements  for 
new and existing buildings 

DE, FR 

Regulation 
standards 

Energy poverty mediation 

Lille - FR 

Subsidies 
renovation 

for 

building 

EE,  AT,  FR,  DE, 
SI 

Financing 
grants/subsidies 

Financing 
grants/subsidies, 
Financing 
loans/loans 

- 

deductions 

for 
heating 

Tax 
renewable 
systems 

DE 

LT,  BG,  AT,  BE, 
CZ,  EE,  FR,  EL, 
IE,  IT,  LV,  LU, 
PL,  PT,  CY,  RO, 
SI 

& 

& 

- 

& 

- 

- 

Soft 

Private  value  for  money 
(long payback periods) 

Subsidies 
renovation 

for 

building 

EE,  AT,  FR,  DE, 
SI 

Reducing electricity prices 

DE,  BE,  GR,  IE, 
LU, CR, MT, ES 

Reputation 
information 

and 

Energy Audits (Advice) for 
Households (Austria) 

AT 

Information  about  heat 
pumps 

FI, NL 

Financing 
incentives 

- 

Tax 

Financing 
grants/subsidies, 
Financing 
loans/loans 

- 

- 

Soft 

& 
Regulation 
standards, Financing - 
Tax incentives 

Awareness,  technical 
support and training 

Awareness,  technical 
support  and  training, 
Financial scheme 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

Energy Demand 

36 

Private  value  for  money 
(Long payback periods) 

Brussels  - 
Loans 
Efficiency 
[ECORENO] 

for 

Interest-Free 
Energy 
Investments 

Brussels - BE 

Financing 
loans/loans 

- 

Soft 

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No.  Challenge 

Name of the supporting 
measure 

Geographical 
scope 

Category/type of 
measure 

On-bill-financing 

FR, IT, NL 

Private  value  for  money 
(High up-front costs) 

Subsidies 
renovation 

for 

building 

EE,  AT,  FR,  DE, 
SI 

Financing 
loans/loans 

- 

Soft 

Financing 
grants/subsidies, 
Financing 
loans/loans 

- 

- 

Soft 

Tax deductions for energy 
efficiency renovations 

CY,  PL,  NL,  IE, 
FI, LU 

Financing 
incentives 

- 

Tax 

Energy-Linked 
Price Regulation 

Rental 

NL, DE, BE 

Regulation 
standards 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 

50 

51 

52 

Lack  of  incentives  (split 
incentives) 

Lack  of  awareness  of 
possible energy savings 

High  age  of  building 
owners 

Minimum 
energy 
performance requirements 
for  new  and  existing 
buildings 

CY, SI 

Energy Audits (Advice) for 
Households (Austria) 

AT 

Energy efficiency web tool  BE, ES, NL 

Energy 
information programmes 

efficiency 

LV, CZ, SI, FR 

State guaranteed loans for 
energy 
efficiency 
measures 

SI 

Small Industry - Willingness 

Voluntary 
Efficiency Agreements 

Energy 

DE, FI 

Insufficient incentives and 
costly period of downtime 

Business Pool 

Energy  Saving  Loan  and 
the Green Loan 

DK 

FR 

Perceived  risk  of  impact 
on product quality 

Energy 
networks for the industry 

efficiency 

SE 

Policy  and 
money uncertainty 

value-for-

Innovation Fund 

Green Deal Industrial Plan 
and Net-Zero Industry Act 

incentive 

Fiscal 
switching 

to 

fuel 

EU 

EU 

DE 

DK 

53 

Long payback periods 

Business Pool 

& 

& 

Regulation 
standards 

Awareness,  technical 
support and training 

Awareness,  technical 
support and training 

Awareness,  technical 
support and training 

Financing 
loans/loans 

- 

Soft 

Voluntary 
agreements, 
Financing 
grants/subsidies 

Financing 
grants/subsidies 

Financing 
grants/subsidies 

- 

- 

- 

Awareness,  technical 
support  and  training, 
Financing 
- 
grants/subsidies 

Financing 
grants/subsidies 

Regulation 
standards 

Financing 
grants/subsidies 

Financing 
grants/subsidies 

- 

& 

- 

- 

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No.  Challenge 

Name of the supporting 
measure 

Geographical 
scope 

Category/type of 
measure 

54 

Feasibility 

Lack of internal skills and 
awareness 

investment 

Capital 
decarbonisation 
processes 

for 

IE 

Financing 
grants/subsidies 

- 

Provision 
support 

of 

external 

AT,  CY,  FI,  IE, 
SE 

Awareness,  technical 
support and training 

Energy audits 

AT, FI, IE 

Support  Programme 
for 
the  Energy  Transition  of 
the 
(PACTE 
Industrie) 

Industry 

studies 

of 
Feasibility 
energy  performance  or 
decarbonisation 
of 
industrial companies 

FR 

FR 

Awareness,  technical 
support and training 

Awareness,  technical 
support  and  training, 
Financing 
- 
grants/subsidies 

Awareness,  technical 
support  and  training, 
Financing 
- 
grants/subsidies 

Subsidy schemes 

AT,  FI,  DE,  IT, 
LV,  HU,  NL,  PL, 
ES 

- 

Financing 
grants/subsidies, 
Financing 
Tax 
incentives,  Financing 
- Soft loans/loans 

- 

Internal 
challenges 

funding 

DECARB 
DECARB IND+ 

IND  25  and 

FR 

Financing 
grants/subsidies, 
Financing 
loans/loans 

- 

- 

Soft 

Energy 
Certificates 

Savings 

FR, ES 

Regulation 
standards 

of 

Lack 
technical 
readiness  of  alternative 
technologies 

Innovation Fund 

EU 

National 
Funds supporting R&I 

Investment 

FR, DE, IE, NL 

Regulated Processes 

Sustainable 
Infrastructure 
(PIDI) 
Program 
Energy 
(MIEK) 

& 

and 

Industry 
Program 
Multi-Year 
Infrastructure 
Climate 

Regulatory  sandboxes  for 
low-carbon innovation 

Fiscal  incentives  to  fuel 
switching 

Heat Fund 

Costs  due  to  regulation 
compliance 
fuel 
switching 

for 

NL 

NL 

DE 

FR 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

67 

& 

- 

- 

& 

& 

- 

Financing 
grants/subsidies 

Financing 
grants/subsidies 

Regulation 
standards 

Regulation 
standards 

Financing 
grants/subsidies 

- 

Financing 
grants/subsidies, 
Awareness,  technical 
support and training 

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No.  Challenge 

Name of the supporting 
measure 

Geographical 
scope 

Category/type of 
measure 

68 

Infrastructure 
development 
alternative fuel 

for 

HR 

Financing 
grants/subsidies 

- 

6.  ANNEX  3  –  SUMMARY  TABLES  FOR  MEASURES  IN  THE 

LONG LIST 

6.1  TRANSPORT - FREIGHT TRANSPORT 

This subsection contains the expanded  measures from the long list of measures, in table format for freight 
transport. 

Table 6-1 Focussed subsidies for purchase and leasing of ZE HDVs - AanZET 

Name of the 
supporting 
measure: 

Short 
description 

Focussed subsidies for purchase and leasing of ZE HDVs - AanZET 

The  Purchase  Subsidy  Scheme  for  Zero-Emission  Trucks  (AanZET)  is  specific  for 
entrepreneurs  and  non-profit  organizations  that  want  to  buy  or  financially  lease  a  new, 
completely emission-free (emission-free) truck. The programme is currently open and has 
followed on from the SEBA (previously implemented scheme). 

The subsidy amount depends on vehicle category and type of company and provides a 
maximum of € 115,200.  

Important changes for AanZET 2025 compared to AanZET 2024: 

•  The concept of emission-free (emission-free) truck has been amended. As a result, 
vehicles with a hydrogen combustion engine (H2ICE) are also eligible for subsidy.  
•  Trucks  weighing  4,250  to  10,000  kilograms  are  no  longer  eligible  for  subsidy. 
Emission-free trucks in this weight class are already comparable in price to diesel 
trucks  in  this  weight  class.  Subsidy  based  on  cost  differentials  is  therefore  no 
longer possible. 

•  The maximum amounts for N2 vehicles (from 10,000 kg to 12,000 kg) have been 

increased. 

•  The  subsidy  percentages  and  maximum  amounts  for  N3  vehicles  up  to  and 
including 18,000 kg have been brought to the same level as the other N3 vehicles. 

Geographical 
scope 

NL 

Category/type 
of measure 

Financing - grants/subsidies 

Rationale 

While the scheme acts a subsidy scheme, it reflects cost differential between a ZE HDV 
and the diesel equivalent of the same vehicle. The subsidy is proportional to the size of the 
business  applying.  Noting  that  smaller  businesses  are  less  likely  to  have  the  capital 
available. 

Source 

Purchase subsidy for zero-emission trucks (AanZET) | RVO.nl 
Purchase subsidy for zero emission trucks | Business.gov.nl 

Affected 
Stakeholder(s) 

Operational lease companies for trucks, 

SMEs, NGO 

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Name of the 
supporting 
measure: 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts) 

Focussed subsidies for purchase and leasing of ZE HDVs - AanZET 

Effectiveness:  positive interaction with the planned truck levy (by 2026). 
Benefits: The measure supports freight transport owners, whether that be SMEs or lease 
operators. 

Cost  (social  and  public):  The  total  budget  for  the  scheme  was  EUR  35.3  million.  The 
scheme will re-open in 09/2025 with a new EUR 30 million budget. 

Context:  It  was  introduced  within  the  broader  Dutch  and  EU  climate  policies  aimed  at 
reducing emissions in the transport sector. Zero-Emission City Logistics (ZES Zones) – 
2025. From 2025, many Dutch cities will enforce zero-emission zones for freight transport. 
AanZET  supports  businesses  in  transitioning  their  fleets  before  these  restrictions  take 
effect.  

Scalability: The limitations to this subsidy scheme lie with the vehicle types. The subsidy 
is  only  available  for  vehicles  where  there  is  a  notable  disparity  between  an  EV  and  its 
emitting alternative on the market. 

Speed of implementation: For being a subsidy the timeframe is very short, the application 
window in the Netherlands was 28/01 - 07/02. 

Replicability:  This  measure  is  highly  replicable  in  other  MS  and  the  element  of  having 
subsidies where there is a pricing disparity between EVs, and emitting vehicles means the 
subsidy can be phased out over time if it is effective but unaffordable to maintain. 

Expanding  on  the  truck  levy  that  will  be  introduced.  In  mid-2026,  the  Netherlands  will 
introduce  a  truck  toll.  Truck  owners  will  pay  an  amount  per  kilometre  driven  on  the 
motorways, several N-roads and some municipal roads. At the same time, the Eurovignette 
will be abolished (i.e., the existing user charge, not the implementation of the Eurovignette 
Directive),, and the motor vehicle tax will be reduced to a minimum. The toll applies to all 
domestic and foreign trucks weighing more than 3.5 tonnes. The average rate per kilometre 
is 16.7 cents (price level 2023). The lower the emissions and the lighter the truck, the lower 
the kilometre rate. 

The net proceeds of the levy will go to subsidies such as those for the purchase of electric 
or  hydrogen  trucks  and  charging  stations  –  which  will  render  the  AanZET  as  a  more 
sustainable subsidy in the near term. 

Truck Charge Program | Vrachtwagenheffing.nl 

Table 6-2 Financial instruments aside from purchase subsidies - Ireland tax break and amortisation 

Name of the 
supporting 
measure: 

Short 
description 

Financial instruments aside from purchase subsidies - Ireland tax break and 
amortisation 

Since 2008 Ireland has had the accelerated capital allowance in place for energy efficiency 
measures. However, this also applied to the purchase of electric vehicles. The Accelerated 
Capital  Allowance  (ACA)  is  a  tax  incentive  scheme  that  promotes  investment  in  energy 
efficient products and equipment. The ACA is based on the long-standing 'Wear and Tear 
Allowance' for investment in capital plant and machinery, whereby capital depreciation can 
be  compensated  through  a  reduction  in  an  organisation's  tax  liability.  The  ACA  allows 
companies  that  pay  corporation  tax  or  income  tax  on  trading  or  professional  income  in 
Ireland to deduct the full cost of the equipment from their profits in the year of purchase. As 
a  result,  the  business's  taxable  profits  are  reduced  by  the  value  of  qualifying  capital 
expenditure. By contrast, the Wear and Tear Allowance provides for the same tax reduction, 
but this is spread evenly over an eight-year period. For freight vehicles coming under the 

86 

 
 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

Name of the 
supporting 
measure: 

Financial instruments aside from purchase subsidies - Ireland tax break and 
amortisation 

category "Electric and Alternative Fuel Vehicles" the accelerated allowance is based on the 
lower of the actual cost of the vehicle or €24,000. 

Geographical 
scope 

IE 

Category/type 
of measure 

Rationale 

Financing - Soft loans/loans 

Companies can deduct the cost up to Euros 24,000s on BEVs from their taxable income to 
receive a tax break. 

Source 

Eligibility For Accelerated Capital Allowances with Electric Vehicles 

Affected 
Stakeholder 

Companies, unincorporated businesses, sole traders, and farmers for electric and 
alternative fuel vehicles 

Effectiveness:  For  businesses  considering  the  switch  to  electric,  the  benefits  are 
substantial: 

•  A 74% reduction in fleet costs compared to new diesel engine cars. 
•  Lower motor tax rates (as low as €120). 
•  Reduced maintenance costs. 
•  A positive impact on the environment. 

Benefits: the  ACA initiative which  falls under the Climate  Action  Plan by Zero  Emission 
Vehicles Ireland, supports the goal of having 945,000 EV’s in Ireland by 2030. 

Cost (social and public):  Businesses do not pay a fee to participate in the ACA scheme. 
It is not clear what the public cost is. 

Context: Ireland has freed up funding for its Climate Action Plan by Zero Emission Vehicles 
Ireland, supports the goal of having 945,000 EV’s in Ireland by 2030. 

Scalability: ACA can be claimed by companies, unincorporated businesses, sole traders, 
and farmers for electric and alternative fuel vehicles 

Speed  of  implementation:  This  measure  can  be  implemented  very  quickly  in  the  short 
term. 

Replicability: Tax incentives are already introduced in a number of European countries, 
so the measure is replicable. 

Eligibility criteria is included here: Enhanced Capital Allowances 

Frontline Energy | SEAI Accelerated Capital Allowance: Frontline Energy can help reduce 
your tax liabilities and drive your business towards a sustainable future 
An Overview of Ireland’s Electric Vehicle Incentives and a Comparison with International 
Peers – Publication 12 of 2022 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts) 

Table 6-3 Financial instruments aside from purchase subsidies – ECO fund Slovenia 

Name of the 
supporting 
measure: 

Short 
description 

Financial instruments aside from purchase subsidies – ECO fund Slovenia 

The  ECO-fund  offers  long-term  loans  for  the  purchase  second-hand  and  new  electric 
vehicles in Slovenia. Established in 1993. Its main purpose is to promote development in 
the field of environmental protection by offering financial incentives such as soft loans and 
grants for various environmental investment projects. 

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Name of the 
supporting 
measure: 

Financial instruments aside from purchase subsidies – ECO fund Slovenia 

For  new  and  used  electric  vehicles:  The  amount  of  each  loan  is  limited  to  the  minimum 
amount of credit, which is EUR 25,000, and the maximum amount of credit, which is EUR 
2 million. The total indebtedness of the borrower with the Eco Fund must not exceed EUR 
10 million. The loan is granted as a proportion (in percentage) of the value of the eligible 
investment costs. The maximum credit ratio is 85% of recognised investment costs. The 
repayment  period  may  not  exceed  5  (five)  years. A  moratorium  on  the  repayment  of 
principal  cannot  be  obtained.  The  loan  is  repaid  in  monthly  instalments,  with  an  annual 
interest rate: f3.5%. 

Geographical 
scope 

SI 

Category/type 
of measure 

Financing - Soft loans/loans 

Rationale 

Source 

The most significant aspect of Eco Fund's operating environment is the requirement that 
Eco Fund maintains the real value of its assets. For this reason, Eco Fund has provided 
support to environmental investments through soft loans and developed a strong focus on 
the financial sustainability of the projects it supports. This makes support of Up-front costs 
more sustainable. 

Buying New Electric Vehicles: Credit | Eco Fund 
Buying Used Electric Vehicles for Road Transport: Credit | Eco Fund 
English | Eco Fund 

Affected 
Stakeholders 

Companies 

Expected 
impacts 

Effectiveness: Eco Fund’s subsidies have had a positive effect on tax revenues, 
diminishing of grey economy, new green jobs, sustainable development of the 
construction planning and business, as well as on the development of the use of strategic 
resources such as wood. The range of funding measures available cover multiple entities 
as well as vehicle ownership and funding for charging infrastructure. 

Benefits: - 
Cost (social and public): - 
Context: Slovenia has had the Eco Fund in place since 1993. The fund owes its longevity 
to offering financially sustainable options. Its success has meant that loans as financing 
options are readily available. 
Scalability: The ECO Fund is available for companies and individuals with varying grants 
and loans. Offering sustainable finance options should be obtainable for most 
stakeholders, however a payback period of only 5 years may limit the accessibility of the 
option due to budget constraints. 
Speed of implementation: The measure is easily implementable, with a payback period 
of 5 years (short term). 
Replicability: The Slovenian Eco fund is financing loans in a partnership with EBID and 
grants available through the climate change fund because of the sale of ETS allowances. 
The  opportunity  for  all  MS  to  allocate  funding  from  the  EU  ETS  revenues  into  transport 
expenditure should be possible. 

Details 
affecting 
delivery 

Source 
(impacts) 

None 

letno-porocilo-eko-sklada-za-leto-2023 
English | Eko sklad 

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Table 6-4 Financial incentives for grid connection of charging infrastructure (national / regional) – Germany 

Name of the 
supporting 
measure: 

Financial incentives for grid connection of charging infrastructure (national / 
regional) - Germany 

Private charging 

Short 
description 

The German Government aims to accelerate the decarbonisation of the transport sector. 
The  Plan  includes  measures  to  increase  the  electrification  of  heavy-duty  road  freight 
transport  specifically,  through  the  development  of  a  truck  fast-charging  network. 
Approximately 350 fast-charging sites will be built - with tender procedures for the first 130 
launched  in  2024.  The  Plan  aims  to  facilitate  the  installation  and  operation  of  charging 
points, making charging infrastructure investment more attractive for the private sector. The 
grid  connection  is  included  in  the  subsidy  for  charging  infrastructure  from  the  German 
Federal Ministry for Digital and Transport (BMDV).  

The  programme  subsidies  up  to  40  %  of  the  total  cost  of  grid  connection  and  charging 
points costs and does so up to 30,000 EUR per charging point, depending on the company 
size. On a regional level, Berlin also offers grid connection subsidies at the low voltage grid 
of max 5,500 € and at the medium voltage of max. 55,000 € for instance.   

The grid connection is included in the subsidy for charging infrastructure from the German 
Federal Ministry for Digital and Transport (BMDV). 

Geographical 
scope 

DE 

Category/type 
of measure 

Rationale 

Financing - grants/subsidies 

Reducing the costs of connecting depot charging infrastructure to the grid and the costs of 
increasing grid connection capacity for transport companies 

Source 

Germany Builds Nationwide Fast-Charging Network for EVs | EV Magazine 

Affected 
Stakeholder 

Companies 

Expected 
impacts 

Effectiveness: The truck fast-charging network will go some way towards meeting the EU’s 
requirement  to  provide  fast-charging  infrastructure  for  battery-electric  trucks  every  60  to 
100 km along key highways. Large electric trucks are relatively new on the market and can 
cost  more  than  twice  as  much  as  their  diesel  equivalents. To  complement  the  tolling 
scheme in Germany they intend to build a network of truck fast-chargers 
Benefits: As an intermediary goal, Germany wants a third of its heavy road haulage to run 
on  electricity,  or  on  fuels  produced  using  electricity  (such  as  synthetic  methane  or 
hydrogen) by 2030. 
Cost (social and public): EUR 150 million in funding 
Context: - 
Scalability: The initiative is highly scalable, given that Germany is looking to free up 1.9 
billion Euros of funding to construct 9000 high power charging points by 2026. 
Speed  of  implementation:  This  should  be  relatively  quick  to  implement,  as  mentioned 
above the network of 9000 high powered chargers is expected to be complete by 2026. 
Replicability: The availability of funding is the main barrier, and also the grid capacity along 
highways. In terms of development of charging points this should be achievable from an 
infrastructure  point  of  view  across  Europe.  The  rollout  of  the  credit  system  should 
incentivise private investment. 

Details 
affecting 
delivery 

None 

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Name of the 
supporting 
measure: 

Financial incentives for grid connection of charging infrastructure (national / 
regional) - Germany 

Source 
(impacts): 

Germany OKs fast-charging infrastructure for trucks | Fleet Europe 
20241101_Foerderlandschaft_ENG.png (1280×720) 

Table 6-5 Financial incentives for grid connection of charging infrastructure (national / regional) - France 

Name of the 
supporting 
measure: 

Financial incentives for grid connection of charging infrastructure (national / 
regional) - France 

Private charging 

Short 
description 

The ADEME Advenir programme supports the first 1,000 charging stations in  depots for 
municipalities or companies and has a 50 % subsidy rate for the installation of  charging 
stations  and  including  grid  connection,  which  is  further  differentiated  according  to 
performance classes. 

Geographical 
scope 

FR 

Category/type 
of measure 

Financing - grants/subsidies 

Rationale 

A law is coming on for France. For existing parking lots owned by companies and public 
authorities, a  gradual  obligation has  been introduced: by 2025, at  least 5% of spaces in 
parking lots with more than 100 spaces must be equipped with recharging stations. This 
percentage  is  intended  to  increase  gradually,  to  encourage  a  smooth  transition  to  a 
widespread and accessible recharging infrastructure.  The Advenir programme is intended 
to provide financial support for this transition. 

Source 

What grants are available for installing a charging station in 2024? - Driveco 
The Electric Vehicle Charging Station Financing Program - Advenir 

Affected 
Stakeholder 

Companies 

Expected 
impacts 

Effectiveness:  Most  short-haul  journeys  for  freight  require  depot  charging,  this  allows 
companies to mobilise capital for investments in charging that is available for HDV charging 
but also available for the public. This measure will tie in well with the crediting mechanism 
to ensure companies can have a return on their investment and reduce the payback period. 
Benefits:  This  subsidy  only  applies  for  1000  charging  points  for  HDVs;  however,  it  is  a 
starting point. 
Cost (social and public): This is part of 530 million Euros of mobilised funding for Created 
in 2016, the Advenir programme, led by Avere-France, supports the installation of electric 
vehicle charging stations. Thanks to the mechanisms of energy certificates, it complements 
public 
mobility. 
Advenir,  with  the  objective  to  finance  250,000  charging  points  by  2027  for  individuals  in 
multi-family buildings, condominium management companies, companies, local authorities 
and public entities. 
Context: - 
Scalability:  The  measure  is  already  part  of  a  larger  package  of  funding  for  charging 
infrastructure available for: 
•  Businesses 
•  Local authorities 
•  Private individuals living in a collective building 

initiatives 

support 

electric 

to 

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Name of the 
supporting 
measure: 

Financial incentives for grid connection of charging infrastructure (national / 
regional) - France 

•  Condominiums or social landlords 
•  Public Entities 
Speed of implementation: The funding for Advenir is set to run until 2027, so they are 
expecting to have another 110,000 charge points implemented by then, to meet their target 
of 250,000. The speed of implementation is relatively short term. 
Replicability: The availability of funding is the main barrier, and also the grid capacity along 
highways. In terms of development of charging points this should be achievable from an 
infrastructure  point  of  view  across  Europe.  The  rollout  of  the  credit  system  should 
incentivise private investment. 

Details 
affecting 
delivery 

Source 
(impacts): 

None 

What grants are available for installing a charging station in 2024? - Driveco 
The Electric Vehicle Charging Station Financing Program - Advenir 

Table 6-6 Financial incentives for grid connection of charging infrastructure (national / regional) - Ireland 

Name of the 
supporting 
measure: 

Financial incentives for grid connection of charging infrastructure (national / 
regional) - Ireland 

Private charging 

Zero-Emission Heavy Duty Vehicle – Recharging Infrastructure Grant Scheme (ZEHDV-I). 
The Scheme is intended to assist the purchase and installation of infrastructure associated 
with the recharging of Heavy-Duty Vehicles (HDVs) that are electric and zero-emission.   

The  Scheme  awards  grants  to  assist  companies  and  enterprises  who  wish  to  develop 
infrastructure to recharge  Zero-Emission Heavy Duty Vehicles (ZEHDV). Grant  amounts 
are calculated as a percentage of the eligible costs associated with the development of the 
recharging infrastructure. 

Short 
description 

Grant levels awarded to applicants depend on: 

1.  The size of the enterprise or company applying for the grant; and 

2.  The location of the recharging infrastructure. 

Geographical 
scope 

IE 

Category/type 
of measure 

Rationale 

Source 

Financing - grants/subsidies 

Grants help SMEs and other companies invest in charging infrastructure, which reduces 
costs for freight through overnight/depot charging in comparison with public charging. 

Zero-Emission Heavy Duty Vehicle – Recharging Infrastructure Grant Scheme 
More  info  on  size  of  grants  can  be  found  in  this  document  Zero-Emission  Heavy  Duty 
Vehicle – Recharging Infrastructure Grant Scheme 

Affected 
Stakeholder 

Companies 

Expected 
impacts 

Effectiveness: The Scheme is intended to assist the purchase and installation of 
infrastructure associated with the recharging of Heavy-Duty Vehicles (HDVs) that are 
electric and zero-emission.  The Climate Action Plan has called for 700 HDVs and 300 
electric buses by 2025, growing to 3,500 low-emission trucks and 1,500 electric buses by 
2030. 

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Name of the 
supporting 
measure: 

Financial incentives for grid connection of charging infrastructure (national / 
regional) - Ireland 

Benefits: - 
Cost (social and public): Funded by the Department of Transport.  
Context: Ireland It is estimated that by end of 2025, at least 8 charging pools, dedicated 
to infrastructure for HDVs (including buses), will be installed across the TEN-T Network 
(motorway network). Each motorway charging pool will consist of an aggregate charging 
capacity of 1400 kW with at least one 350 kW charger. In addition to this, by 2025, a 
dedicated HDV charging pool of at least 600 kW will be present at each of Dublin, Cork, 
and Shannon airports. 
Scalability: in Ireland there is a scheme for HDV and LDVs. It is scalable for freight 
transport. 
Speed of implementation:  In order to enable the delivery of this infrastructure, ZEVI will 
work with private sector providers, as well as TII, ESBN, and local authorities to develop a 
National EV Charging Network Plan (En-Route Charging) for HGVs. 
Replicability: Similar schemes are already in place across other MS. 

Details 
affecting 
delivery 

Source 
(impacts): 

None 

Zero-Emission Heavy Duty Vehicle – Recharging Infrastructure Grant Scheme 
Assets.gov.ie 

Table 6-7 Financial incentives for grid connection of charging infrastructure (national / regional) - Spain 

Name of the 
supporting 
measure: 

Financial incentives for grid connection of charging infrastructure (national / 
regional) - Spain 

Private charging 

The  programme  MOVES  III,  that  supports  electric  mobility,  includes  in  its  program  of 
incentives  II,  subsidies  for  the  grid  connection.  In  fact,  it  provides  support  for  “The 
installation of electrical elements, including the transformer and the connection work to the 
distribution network”.  
For  companies  and  public  entities with  economic  activity,  public  access  charging  and  P 
≥50kW, the percentage of eligible cost covered by aid is: 

Short 
description 

•  20% large enterprise 
•  40% Medium enterprise 
•  50% Small enterprise 

For companies and public entities with economic activity: private access charging or public 
access with P <50kW: 

•  20% 
•  30% SME 

SMEs, which take advantage of a minimis at the time of application, recharge public access 
and P ≥50kW: 

• 
• 

(45% Medium-sized company) 

(55% Small Business) 

These figures increase for entities located in municipalities with less than 5000 inhabitants. 

Geographical 
scope 

ES 

Category/type 
of measure 

Financing - grants/subsidies 

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Name of the 
supporting 
measure: 

Rationale 

Financial incentives for grid connection of charging infrastructure (national / 
regional) - Spain 

SMEs in particular will struggle to mobilise funding for charging installations, supports here 
will help smaller depots uptake EVs. Regional hubs are targeted, as most freight journeys 
in the EU will cover shorter hub-to-hub trips and this measure will help to support it. 

Source 

www.idae.es 

Affected 
Stakeholder 

SME, Municipalities 

Expected 
impacts 

Effectiveness: At the end of 2023, the budget already enabled to regional administrations, 
which  operates  the  incentives  at  a  regional  level,  amounted  to  €971,79  million,  with  aid 
requests for 104,048 electric vehicles and 99,700 charging points. 
Benefits: Specific information on emissions savings is not available. 
Cost  (social  and  public):  The  overall  programme  initially  had  a  budget  of  400  million 
euros, which has subsequently increased to 1.55 billion euros within the framework of the 
Recovery & Resilience Fund. 
Context: This funding helps support municipalities based on population as well as national 
level. 
Scalability: Eligible stakeholders already include individuals and self-employed persons, 
communities of owners, legal entities incorporated in Spain, Industrial Estates Conservation 
Entities or Agricultural Transformation Companies. 
Speed of implementation:  Relatively quick as by the end of  2023, the budget  already 
enabled  to  regional  administrations,  which  operates  the  incentives  at  a  regional  level, 
amounted to  €971,79  million,  with  aid requests  for  104,048 electric vehicles and 99,700 
charging points. 
Replicability:  The  replicability  will  depend  on  the  funding  available  for  MS  from  the 
Recovery and Resilience fund to produce something similar. However, all MS are rolling 
out charging infrastructure. 

Details 
affecting 
delivery 

Source 
(impacts): 

None 

MOVES III Programme | Idae 
Spain – EV TCP 

Table 6-8 Credits for private charging infrastructure 

Name of the 
supporting 
measure: 

Credits for private charging infrastructure 

Private charging 

Short 
description 

Germany has pioneered the approach of using ‘fixed values’ for private charging. Germany 
started with a fixed value of private charging for electric vehicles of 2 MWh per year. This 
value of 2 MWh is a realistic estimate of the yearly private charging on the  basis of  the 
average  mileage  of  an  average  electric  car  in  Germany.  Later  on,  German  authorities 
introduced  values  for  other  vehicle  categories,  using  the  UNECE  standards.  Private 
charging  for  vans  (vehicle  category  N1)  was  estimated  to  be  3.5  MWh.  Buses  (vehicle 
category  M3)  were  estimated  to  charge  87  MWh  per  year  at  a  private  charger.  A  last 
addition  was  made  in  August  2023  for  trucks  (communication  by  German  Environment 
Ministry).  Fixed  values  for  private  charging  were  introduced  for  two  types  of  truck 
categories. Smaller trucks up to 12 tonnes (vehicle category N2) are awarded 20.6 MWh of 
annual private charging and bigger trucks exceeding 12 tonnes (vehicle category N3) are 
awarded 33.4 MWh.  

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Name of the 
supporting 
measure: 

Credits for private charging infrastructure 

To ensure the fixed value is accurate and represents the true electricity requirement of the 
respective  vehicle,  T&E  suggest  the  use  of  established  mileage  factors  and  vehicle 
categories  under  the  EU  CO2  standards  for  HDVs,  based  on  the  Vehicle  Energy 
Consumption Calculation Tool. 

Geographical 
scope 

DE 

Category/type 
of measure 

Financing – credit mechanism 

Rationale 

Providing credit to private HDV charging in addition to public charging is deemed by internal 
exerts to be one of the most effective support schemes which member states can put in 
place to help improve the economic viability of early-stage private charging operations by 
transport companies. It is widely accepted that private recharging will be responsible for the 
majority of electricity supplied to HDVs. 

Source 

202406_T&E briefing_crediting private charging HDVs RED 

Affected 
Stakeholder 

Charging point operators (CPOs), fuel suppliers 

Effectiveness: 
About 2.3 MWh of BEV recharging in Germany generates 1 credit of 1 tonne of CO2 
reduced. 
Benefits: The crediting mechanism is expecting to contribute to the following Carbon 
intensity reduction targets: 

Expected 
impacts 

- 
- 
- 

2024 – 9.25% 
2025 - 10.5% 
2030 – 25% 

About 2.3 MWh of BEV recharging in Germany generates 1 credit of 1 tonne of CO2 
reduced. 261 
Cost (social and public): There is an initial cost burden for the CPOs, however they will 
be the ones that benefit from the sale of the credits. The main cost will be borne by the 
energy suppliers, who are mandated under EU law to contribute a certain percentage of 
their energy supply from RES. They can either buy the credits or supply renewable 
energy to meet this quota. There will be no cost on the public, unless some of the cost of 
meeting such targets is passed on by energy suppliers to the final consumers charging 
their vehicles. 
Context: Currently, the MSs that have a private charging mechanism in place are Austria 
and Germany, with the Netherlands expected to include private crediting from 2026 
onwards. 
Scalability: The mechanism should be easily scalable, but MS will need to set up MRV 
and auditing requirements. In Germany, private charging is credited as a one-off default 
consumption value set by the concerned authority. 
Speed of implementation: The system can be implemented relatively quickly, as the EU 
mandate already requires the reporting of contributions towards share of renewable 
energy supplied to the market.  
Replicability: The mechanism should be easily scalable, but MS will need to set up MRV 
and auditing requirements. The measure will have the most effect in MS that rely more on 
private charging instead of public charging installations, and where charging installations 
are more prominent. 

261 20230801_T&E briefing credit mechanism RES-E RED III 

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Name of the 
supporting 
measure: 

Details 
affecting 
delivery 

Source 
(impacts): 

Credits for private charging infrastructure 

None 

202406_T&E briefing_crediting private charging HDVs RED 
Implementation+of+RED+III+ENG.pdf 

Table 6-9 Anticipatory investments 

Name of the 
supporting 
measure: 

Anticipatory investments 

Public charging 

France  -  France  has  put  in  place  a  specific  regulatory  framework  for  the  network 
development  planning  associated  with  renewable  productions  development  (so  called 
“Schémas  Régionaux  de  Raccordement  au  Réseau  des  Energies  Renouvelables”  or 
“S3REnR”). This framework aims to coordinate producer’s projects and network planning 
and  mutualise  costs.  In  order  to  reduce  the  lead  time  for  network  adaptation,  producers 
have  been  asked  to  give  a  better  visibility  about  their  expected  projects,  through  a 
declaration on a specific website. Network operators have been asked to start the works as 
soon as possible based on these evaluations. 

In  terms  of  consumption,  France  has  set  up  “decarbonation  zones”  (industrial  areas 
where an important future demand of electricity is expected to substitute fossil fuels, mainly 
gas). A strong increase of power needs is foreseen in these areas, thus RTE and CRE have 
elaborated a framework that allows RTE to over size grid reinforcement projects so that the 
zone will be able to host future potential users not yet identified but considered very likely 
to appear in the near future. located. 

Germany  -  DSOs  are  generally  obliged  to  perform  anticipatory  network  expansion 
according to § 11 of the Energy Industry Act. The major distribution grid operators with 
more than 100.000 customers are required to create a network development plan and a 
so-called regional scenario. These documents serve as the foundation for determining the 
proactive  network  expansion  needs.  Future  generators  and  loads,  especially  renewable 
energies, electric vehicle charging infrastructure, and buildings, must be considered during 
this process. 

Lithuania - Has investment projects related to network development planning in the next 
10 years. These investments are coordinated in the network operator's 10-year investment 
plan and assessed through a technical and economic analysis. These investment projects 
are  related  to  increasing  the  capacity  of  transformer  substations,  increasing  the  cross 
section of overhead line, and are focused on future demand rather than current demand. 

FR, DE, LT 

Regulation & standards 

Addressing anticipatory investments improve planning for grid infrastructure requirements, 
development and connections. This will promote  faster connections of planned  charging 
points and secure further investment under better guarantees of connection. 

Short 
description 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

ACER-CEER_Paper_anticipatory_investments.pdf 

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Name of the 
supporting 
measure: 

Affected 
Stakeholder 

Anticipatory investments 

CPOs, Companies, Individuals 

Effectiveness: With sufficient planning this will not only cover the ETS2 sectors but also 
the sectors but also aid renewable energy production increases 
Benefits: N/A 
Cost (social and public): 
Context: All countries in the EU are mandated under the AFIR to create greater visibility 
of grid capacity 
Scalability: This is significantly scalable and should be made publicly available, to attract 
private investors for public grid infrastructure. 
Speed of implementation: This is easily implementable but will take significant planning 
and collaboration from grid operating bodies to map requirements. 
Replicability: This measure should be applicable for all MS. 

Lack of regulatory framework 

ENTSO-E Position Paper on Anticipatory Investments 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-10: Streamlining and harmonising administrative processes for grid connections 

Name of the 
supporting 
measure: 

Streamlining and harmonising administrative processes for grid connections 

Public & private charging 

Streamlining and harmonising administrative processes for grid connections is crucial for 
quicker setup of charging infrastructure. This includes setting clear timelines for connection 
requests and making capacity maps easily available to prospective charging providers. In 
the  UK  some  of  the  actions  proposed  with  Charging  Point  Operators  (CPOs)  and 
Distribution  Network  Operators  (DNOs)  were  agreed  following  workshops  with  key 
stakeholders carried out over several months.  

Once a connection offer has been accepted and a timeframe for energisation is provided 
by  the  DNO,  DNOs  are  to  provide  clear  guidance  on  next  steps  and  enhance 
communication  with  customers,  particularly  when  giving  milestone  updates  on  progress 
toward energisation.  

Short 
description 

Within  the  timescales  and  milestones  DNOs  provide  in  line  with  the  GSOP,  DNOs  to 
outline/highlight  key  areas  which  may  lead  to  delays  in  energisation  (for  example, 
wayleaves, S37 consent). 

Sometimes  local  authorities and CPOs are operating across DNO  boundaries  and  need 
approvals  from  multiple  DNOs  –  complicating  and  slowing  the  process.  (2.1)  Where 
essential to CPOs / local authorities working on projects across boundaries, DNOs are to 
hold joint, cross-boundary surgeries to simplify the work on these projects. 

The  Netherlands  is  addressing  grid  congestion  through  over  100  coordinated  actions 
involving  regulators,  grid  operators,  and  market  stakeholders,  as  more  than  12,000 
companies  await  new  or  expanded  grid  connections  and  up  to  90%  of  businesses  face 
related  impacts.  These  measures  focus  on  three  principles:  Faster  Construction  of 
infrastructure,  Better  Utilisation  of  existing  networks,  and  Smarter  Insight  through  digital 
tools and data-driven planning. 

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Name of the 
supporting 
measure: 

Geographical 
scope 

Category/type 
of measure 

Streamlining and harmonising administrative processes for grid connections 

NL, UK 

Regulation & standards 

Reduces the amount of time taken to install and connect new charging installations. 

There is a direct impact on the consumers who are waiting for a charge point to be available. 
Improving the process of connecting charge points will help deliver charge points at pace, 
which will benefit all current and prospective EV owners.  

Rationale 

Increased transparency and clarity  of process of connecting charge points will  positively 
impact the relationship between CPOs and DNOs. It will also ensure that CPOs know when 
their assets will be generating revenue.   

https://evboosters.com/ev-charging-news/eu-faces-challenges-in-implementing-hdv-
charging-network-by-2030/ 
https://www.gov.uk/government/publications/improving-the-grid-connection-process-for-
electric-vehicle-charging-infrastructure/improving-the-grid-connection-process-for-electric-
vehicle-charging-infrastructure#summary-table-of-actions 

Source 

Affected 
Stakeholder 

CPOs and private companies 

Effectiveness: Streamlining processes will incentivise investors to provide charging 
infrastructure. It secures their investments and allows for effective planning of national 
charging networks on a larger scale. This measure can be combined with measures 
targeting transparency around grid limitations and opportunities. 
Benefits: For collaboration to expand between the energy and transport sectors, allowing 
government and industry to deliver over 70,000 public EV charge points in the UK and 
over 680,000 domestic charge points in England alone 
Cost (social and public): Burden will be placed on DNOs. 
Scalability: The mapping and clear administration procedures for connecting to the 
energy grid will benefit CPOs, however such transparency would also help other sectors, 
such as energy suppliers (citizens and other enterprises) with enabling fast connection to 
the grid. 
Speed of implementation: The process should be relatively quick; however, the 
structure of the energy market will affect outcomes and cooperation of DSOs and TSOs is 
required. Nuances in certain MS and the capacity to take part in workshops to identify the 
best approaches for streamlining administrative processes may take time.  
Replicability: Harmonising measures should be achievable in some format across all MS. 
Streamlining  administrative  processes  for  grid  connections,  such  as  clear  timelines  for 
connection  requests  and  accessible  capacity  maps  would  help  secure  market  led 
investment for charging infrastructure.   

None  -  now  beginning  to  see  collaboration  between  the  sectors,  which  has  allowed 
government and industry to deliver over 70,000 public EV charge points in the UK and over 
680,000 domestic charge points in England alone. 

https://www.gov.uk/government/publications/improving-the-grid-connection-process-for-
electric-vehicle-charging-infrastructure/improving-the-grid-connection-process-for-electric-
vehicle-charging-infrastructure#summary-table-of-actions 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

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Table 6-11 Eurovignette – Truck tolling in favour of ZE HDVs. 

Name of the 
supporting 
measure: 

Short 
description 

Eurovignette – Truck tolling in favour of ZE HDVs. 

DE  -  Germany  -  Amendment  of  the  Federal  Trunk  Road  Toll  Act  as  of  1.12.2023.  This 
favours  ZEV  through  two  adjustments  in  particular:  1)  Introduction  of  a  CO2-based  toll 
component based on a CO2 price of EUR 200 per tonne 2) Toll exemption for ZEVs until 
the end of 2025, after which the infrastructure component of the toll will be reduced by 75%. 
The  coalition  agreement  of  the  new  Government  provides  for  the  extension  of  the 
exemption  beyond  2026,  based  on  an  upcoming  proposal  of  the  Commission  that  was 
announced in the Action Plan for the European automotive industry. 

With Germany's reform, toll charges for diesel trucks were significantly increased and now 
amount to 46,500 EUR per year on average in the long-haul segment. Zero-emission trucks 
on the other hand receive a big reduction and pay less than 2,000 EUR annually until 2025, 
and  less  than  7,000  EUR  thereafter.  This  means  that  hauliers  who  purchase  one  of 
Daimler's new eActros 600 will save almost 45,000 EUR in their first year of operation. From 
2026 onwards, the savings will amount to around 40,000 EUR. 

 Geographical 
scope 

DE 

Category/type 
of measure 

Rationale 

Financing - Tolling mechanism 

Scaling tolling in favour of HD ZEVs should reduce the cost of ownership for electric trucks 
in comparison with polluting trucks. This will incentivise companies, to invest in EV fleets in 
the short term. 

Source 

202403_Eurovignette_briefing_update 

Affected 
Stakeholder 

SMEs, Heavy duty vehicle operators 

Expected 
impacts 

Effectiveness: Cost savings – Between 40,000 and 45,000 Euros per year, per ZE HDV 
truck.  While  the  measure  is  effective,  the  impact  will  mainly  be  felt  for  long-haul  freight 
journeys. 
Benefits:  Tolling  in  favour  of  EVs  can  be  implemented  across  the  entire  road  transport 
sector.  In  many  cases  the  tolls  are  based  on  weight,  where  diesel/petrol  vehicles  are 
heavier  that  their  EV  equivalent  across  all  vehicle  categories.  It  is  worth  noting  that  the 
measure will affect long-haul journeys. 
Cost (social and public): ZEVs do not contribute to the recovery of the infrastructure costs. 
Context: A key element of this measure is that it will be implemented on toll roads. 
Scalability: As mentioned above, the best practice focusses specifically on HD vehicles. 
However, the measure can also be applied to all vehicle users, both for private and freight 
transport  across  multiple  vehicle  categories.  Commercial  users  are  more  likely  to  make 
purchase decisions based on a change in the total cost of ownership, whereas private users 
are  more  likely  driven  by  the  upfront  cost.  Therefore  this  measure  is  more  effective  for 
commercial users.  
Speed of implementation: The measure should be easily implementable in the short term. 
For clarity in the EU the following forecast change to tolling is expected in MS: By March 
2024, MS had to vary toll charges for vehicles based on CO2 emissions. By 2026, distance- 
and time-based tolls varied by CO2 are expected to be in force in 17 member states. This 
means  that  62%  of  EU  truck  activity  (measured  in  tonne-kilometres)  will  have  a  strong 
incentive to switch to zero-emission vehicles (ZEVs). 
Replicability: The measure will likely have an impact in MS with more toll roads, and where 
traffic is more significant. Secondly, there are countries which still apply Vignettes, which 
are time-based tolls. The tolls will be easier to implement  in countries that already have 

98 

 
 
 
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Name of the 
supporting 
measure: 

Details 
affecting 
delivery 

Eurovignette – Truck tolling in favour of ZE HDVs. 

distance-based tolling in place. Concessions in other countries also effect the replicability 
of new tolls 

Concessions: Some MS toll by distance but with long-term concession contracts granted 
to private operators (so-called ‘concession countries’). For example, highways in France 
and Italy are under such concessions. Croatia, Greece and Portugal are also concession-
dominated,  while  selected  highway  sections  in  Ireland  and  Spain  are  concession  tolled. 
Some form of concession-controlled distance-based tolls apply in MS which represent up 
to 36% of EU truck activity today. Existing concession agreements mean that governments 
can  only  vary  toll  charges  by  agreement  with  the  concession  holder  (or  under  a  formal 
procedure. Often signed decades ago, with little regard to climate breakdown, air and noise 
pollution).  For  new  concession  agreements,  or  where  existing  contracts  are  renewed  or 
substantially amended, Member States must implement the new rules adopted in Directive 
(EU)  2022/362  (that  is,  variation  of  tolls  based  on  CO2  emissions),  at  least  until  ETS2 
applies.. 

Source 
(impacts): 

202403_Eurovignette_briefing_update 

Table 6-12 Tax incentives for ownership of EVs 

Name of the 
supporting 
measure: 

Tax incentives for ownership of EVs  

Short 
description 

Germany 
•  Ownership  tax  benefits  :10-year  exemption  for  BEVs  and  FCEVs  registered  until  31 

December 2025. Exemption granted until 31 December 2030. 

•  Exemption from the annual circulation tax for vehicles emitting ≤ 95g CO2/km. 
•  Company tax benefits: Reduction of the taxable amount for BEVs and PHEVs (from 
0.5-1%  of  the  gross  catalogue  price  per  month).  PHEVs  must  meet  further 
requirements, which become more stringent over time. Additional reduction of taxable 
amount for BEVs with a gross list price up to €60,000 (0.25-1% of the gross catalogue 
price per month). 

Italy 
•  Ownership tax benefits: Electric vehicles are exempt from the annual ownership tax for 
a period of five years from the date of their first registration. After this five
year period, 
they benefit from a 75% reduction of the tax rate applied to equivalent petrol vehicles 
in many regions. 

‐

• 

In Valle d'Aosta, the 5-year period is extended to 8 years. 

Latvia 
•  Ownership tax benefits: If emitting less than 50 g CO2/km, all vehicles, including cars, 
goods  vehicles,  buses,  and  motorcycles,  are  exempt  from  payment  of  the  Vehicle 
Operation Tax (registration tax).  

•  Company tax benefits: BEVs have a minimum rate of €10. 

Geographical 
scope 

Category/type 
of measure 

DE, IT, LV 

Financing - Tax incentives 

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Name of the 
supporting 
measure: 

Rationale 

Tax incentives for ownership of EVs  

Tax  incentives  reduce  the  total  cost  of  ownership  of  EVs  in  comparison  with  emitting 
vehicles. 

Source 

Incentives and Legislation | European Alternative Fuels Observatory 

Affected 
Stakeholder 

Companies and individuals 

Effectiveness: Tax breaks, help reduce the cost of ownership disparity with emitting 
vehicles. They work in unison with Tolls to close this gap in the cost of ownership. 
Benefits: Tax breaks can cover the entire road transport sector, both on a personal and 
freight level, and can be applied to all vehicle categories. 
Cost (social and public): This is no cost burden on industry, however there is pressure 
on the supply of charging infrastructure if the tax incentives drive a rapid change in the 
vehicle mix. Public authorities will see income fall through tax breaks and will need to 
invest in charging infrastructure simultaneously. 

Context: - 
Scalability: In some MS tax incentives already apply across all vehicle types and are 
applied to companies and individuals, so they are a very versatile measure. The issue is 
that like direct subsidies they can be expensive to sustain. 
Speed of implementation: The measure is quickly implementable. 
Replicability: Most MS in Europe have some kind of tax break on vehicle ownership or 
upon registration of an electric vehicle already. 

None 

Incentives and Legislation | European Alternative Fuels Observatory 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

6.2  TRANSPORT - PERSONAL TRANSPORT/MODAL SHIFT 

This subsection contains the expanded measures from the long list of measures, in table format for personal 
transport/modal shift. 

Table 6-13 Social leasing 

Name of the 
supporting 
measure: 

Social leasing 

Short 
description 

Leasing costs for ZEV are subsidised for low-income households: 

FR:  low-income households can lease an electric car for 100€/month (implemented price 
is actually cheaper), requirements: living 15km away from work, income below 15.400€, 
drive more than 8000 km/year. Each vehicle is subsidised with around 13000€. 

“The total costs for the French scheme (for 50,000 vehicles) are estimated at around 650 
million euros, twice as much as initially planned. This cost is directly linked to the high 
level of subsidy (€13,000 per unit in total) which is now widely considered too high and 
inappropriate in the light of the success of the scheme and the strong demand.” 

Geographical 
scope 

FR 

Category/type 
of measure 

Financing - grants/subsidies 

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Name of the 
supporting 
measure: 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Social leasing 

In  particular,  low-income  households  with  a  high  dependence  on  cars  are  affected  by  a 
disproportionate increase in spending on mobility with a rising CO2 price. Targeted vehicle 
subsidies  and  an  alternative  financing  instrument  (leasing)  can  avoid  high  initial 
investments and enable an early switch to EVs for this vulnerable group. 

https://www.ecologie.gouv.fr/mon-leasing-electrique 

https://www.transportenvironment.org/uploads/files/2024_10_Social_leasing_briefing.pdf 

Low income private HH 

Effectiveness:  effectively  removes  a  key  hurdle  for  ZEV  procurement  for  low-income 
households; coupling with charging infrastructure funding makes sense 
Benefits: private registrations of new passenger cars; impact dependent on size of funding 
budget; relevant CO2 savings if linked to high annual mileage 
Costs (social and public): high public expenditure per vehicle; increased demand from 
ZEVs; possibly faster price reduction in this vehicle segment 
Context: so far only implemented in France 
Scalability:  should  be  limited  to  low-income  households,  high  public  funding  budgets 
required  
Speed of implementation: determined by administrative process of application review and 
vehicle availability 
Replicability:  Dependent  on  available  funding  budget;  less  effective  in  countries  with  a 
high relevance of the used car market; availability of charging infrastructure as a central 
condition 

High subsidy amounts per vehicle are required to achieve an attractive leasing rate. A high 
level  of  transparency  should  be  demanded  from  the  leasing  companies  involved  when 
concluding contracts based on social criteria. 

https://www.transportenvironment.org/uploads/files/2024_10_Social_leasing_briefing.pdf 

Table 6-14 Subsidies based on social criteria, including scrappage schemes 

Name of the 
supporting 
measure: 

Short 
description 

Subsidies based on social criteria, including scrappage schemes 

PL:  The  purchase  of  ZEV  by  private  HH  is  subsidized  through  a  bonus.  The  bonus  is 
depending  on  family  size  and  income  (4,500€-9,500€).  For  scrapping  an  old  ICEV 
additional 2,400€-3,900€ are granted, also depending on income and family size. There is 
also a bonus for leasing a ZEV. 

Geographical 
scope 

PL 

Category/type 
of measure 

Financing - grants/subsidies 

Rationale 

Government  support  for  the  procurement  of  ZEVs  for  private  use  with  a  focus  on  low-
income individuals and families reduces a central hurdle for electrification and thus also the 
impact of a future CO2 price. At the same time, it creates an incentive to scrap particularly 
old conventional vehicles that are associated with high CO2 and air pollutant emissions. 

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Name of the 
supporting 
measure: 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Subsidies based on social criteria, including scrappage schemes 

https://notesfrompoland.com/2025/02/05/poland-launches-eu-funded-subsidies-for-
buying-electric-cars/ 

Private HH 

Large families 

Low income HH 

Effectiveness:  effectively  removes  a  key  hurdle  for  ZEV  procurement  for  low-income 
households; coupling with charging infrastructure funding makes sense 
Benefits: private registrations of new passenger cars; impact dependent on size of funding 
budget.  
Costs (social and public): high public expenditure per vehicle; increased demand from 
ZEVs; possibly faster price reduction in this vehicle segment 
Context:  Low  electrification  rate  among  target  group  to  date;  commercial  of  greater 
importance 
Scalability:  should  be  limited  to  low-income  households,  high  public  funding  budgets 
required  
Speed of implementation: determined by administrative process of application review and 
vehicle availability 
Replicability:  Dependent  on  available  funding  budget;  less  effective  in  countries  with  a 
high relevance of the used car market; availability of charging infrastructure as a central 
condition 

As electric vehicles and new car purchases still play a very minor role in the target groups 
addressed, the leverage effect is rather limited. Access to low-cost charging infrastructure 
must also be ensured. 

As above. 

Table 6-15 Emission based taxes and tolls (bonus-malus). Tax advantaged for ZEV and malus for ICEV 

Name of the 
supporting 
measure: 

Emission based taxes and tolls (bonus-malus). Tax advantaged for ZEV and malus 
for ICEV 

AT,  FR,  NL:  Emission  based  licensing/registration  tax:  (AT:  NoVA  must  be  paid  when 
registering a car in Austria. Tax rate is based on CO2 emissions (tax rate= (CO2-emission 
- 97 g/km)/5). Maximal tax rate is 80%. As soon as emission is higher than 155g/km there 
is an additional malus of 80€/g; FR: Fully electric vehicles and plug-in hybrids are for 50% 
exempted from registration fees. And 100% exempted form licence plate registration) 

Short 
description 

AT, DEN, SE, LN: Emission based ownership/road tax: Based on CO2-emissions of car a 
tax has to be paid yearly by private households. (AT: for all vehicles below 3,5 t, including 
motorcycles;  from  74€/year  to  1459€/year;  DEN:  Ownership  taxes  are  based  on  CO2 
emissions. Zero-emission cars and cars with CO2 emissions of maximum 58g/km pay the 
minimum semi-annual tax rate of DKK 390; SE: yearly emission-based car tax: base for 
carbon  emitting  vehicles  360  SEK  +  11  SEK  per  gram  CO2/km  exceeding  111  grams. 
Bonus malus: high emitting cars have to pay more, low/no emitting cars have to pay less.) 

BE, NO: Emission based toll. Tolls have to paid by all vehicles based on their emissions. 
ZEV have to pay less or are exempt of the fees. High emitting cars may pay more. 

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Name of the 
supporting 
measure: 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Emission based taxes and tolls (bonus-malus). Tax advantaged for ZEV and malus 
for ICEV 

FR, NL, AT, DEN, SE, BE, NO 

Financing - Tax incentives, Financing – tolling mechanism 

In  general,  there  are  3  starting  points  for  the  privileging  of  ZEVs  through  bonus-malus 
approaches: 1) at the time of purchase through a differentiated registration tax, 2) in the 
annual motor vehicle tax or also via 3) the road toll. The approaches can also be combined. 
They have the effect of changing the total usage costs in favour of ZEVs, but do not place 
an  additional  burden  on  the  state  budget  and  can  therefore  be  sustained  for  longer. 
However, note that without further measures (see e.g. social leasing), households with low 
incomes that are unable to finance the switch can also face additional costs 

https://alternative-fuels-observatory.ec.europa.eu/transport-mode/road/france/incentives-
legislations 
https://www.finanz.at/kfz/nova/ 
https://www.oeamtc.at/thema/steuern-abgaben/motorbezogene-versicherungssteuer-
18178410;  

https://www.einfach-leben.at/wp/wp-content/uploads/Tabelle-KFZ-Steuer.pdf 

https://www.aldautomotive.dk/en/my-company-car/ownership-tax 

Norwegian EV policy - Norsk elbilforening 

Brussels develops intelligent kilometre charge - POLIS Network 

Affected 
Stakeholder 

Car owner and car operator (private and commercial) 

Effectiveness: effectively reduces the cost disadvantage of ZEV for all users; coupling 
with charging infrastructure funding makes sense. Private users are more sensitive to 
price changes at the time of the purchase (registration tax) whereas commercial users to 
changes in the total cost of ownership (annual tax and tolls). 
Benefits: new car registrations (and stock); high impact, as conventional vehicles are 
also affected 
Costs (social and public): Implementation possible without higher government 
spending; higher costs for owners of conventional vehicles 
Context: Implementation so far mainly in Western and Northern Europe. 
Scalability: Implementation may have to be linked to different preconditions (e.g. 
existence of a national registration tax or car toll); but also, flexibility through different 
implementation variants 
Speed of implementation: Relevant fast implementation possible due to different 
implementation variants 
Replicability: high replicability possible; high potential in countries with sufficient charging 
infrastructure and high proportion of new registrations 

The CO2-orientation of the tax and levy system creates strong and sustainable monetary 
incentives  to  switch  to  ZEVs.  However,  this  will  only  happen  if  charging  infrastructure  is 
also available.  In addition, the ability of low-income households to react is limited in the 
short term due to the low number of ZEVs on the used car market and limited financing 
resources. 

Internal expert. 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

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Table 6-16: Reduced and simplified ticket pricing for public transport    

Name of 
the 
supporting 
measure: 

Short 
description 

Reduced and simplified ticket pricing for public transport    

The KlimaTicket Ö, launched in Austria in 2021, is a nationwide public transport pass aimed 
at encouraging public transport use to reduce greenhouse gas emissions and air pollution. 
It offers a single subscription covering all public transport modes across the country and is 
available  to  all  residents,  with  discounts  for  specific  groups.  Introduced  partly  to  restore 
ridership  after  the  COVID-19  pandemic,  the  initiative  is  supported  by  major  government 
investments in upgrading and expanding transport infrastructure to meet rising demand 

The OV-chipkaart was first launched in Rotterdam in 2005 and later expanded across the 
country  in  2010.  It  is  a  unified  national  fare  system  used  by  all  major  public  transport 
operators on the Dutch mainland. Since mid-2022, the Netherlands has introduced OVpay, 
a  system  complementary  to  the  OV-chipkaart,  which  allows  users  to  check  in  to  public 
transport using contactless debit or credit cards and mobile devices. 

Geographic
al scope 

Category/ty
pe 
measure 

of 

AT, NL 

Regulation & standards 

Rationale 

The  KlimaTicket  Ö  was  implemented  to  overcome  key  barriers  to  public  transport  use  by 
offering an affordable and integrated travel solution. Priced at around three euros per day, it 
reduces financial  obstacles and simplifies access by unifying  all transport modes under a 
single  ticket.  The  rationale  behind  the  initiative  also  includes  a  strategic  focus  on  pairing 
increased affordability with major public investment in transport  infrastructure and service 
quality.  This  dual  approach,  stimulating  demand  while  expanding  supply,  aims  to  prevent 
issues like overcrowding and service degradation, ensuring the system remains attractive 
and effective for users. 

The OV-chipkaart and OVpay simplify the way users access public transport by unifying both 
payment methods and the tracking of public transport usage. 

Source 

KlimaTicket 
NS Annual Report 2024 

Affected 
Stakeholder 

Households 

Expected 
impacts 

Effectiveness: The reduction in CO2 emissions  is estimated in 65,000 tonnes of CO2e in 
2021. 
Benefits: By August 2023, 250,000 had been sold, meaning that nearly 3% of the Austrian 
population held a nationwide KlimaTicket Ö. When regional tickets are included, the share 
rises to 13%.  

Costs  (social  and  public):  The  measure  is  partially  funded  through  ticket  sales,  which 
contribute  to  its  financial  sustainability.  In  2022,  the  federal  government  allocated  €160 
million  to  support  the  initiative.  Regional  governments  finance  their  own  versions  of  the 
KlimaTicket but receive €180 million from the central government to support implementation 
and expand public transport services. 
Context:  Implemented  in  Austria,  both  at  the  national  and  regional  level.  Other  Member 
States  have  different  measures  in  place  to  promote  public  transport  (e.g.,  Germany’s 
transport).  OV-chipkaart  and  OVpay 
Deutschlandticket,  Luxembourg’s 
implemented at the national level in the Netherlands. 
Scalability: The KlimaTicket Ö has shown strong scalability, expanding from a local initiative 
in  Vienna  to  a  nationwide  program  that  effectively  serves  both  urban  and  rural  areas.  Its 
integrated subscription model supports long-distance and multimodal travel, with potential 
for further expansion to include services like bike-sharing. Austria’s experience indicates that 

free  public 

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Name of 
the 
supporting 
measure: 

Reduced and simplified ticket pricing for public transport    

similar models could be replicated in other regions or sectors, given adequate infrastructure 
and  coordination.  The  OV-chipkaart  was  implemented  as  a  payment  method  and  then 
expanded and complemented by other services. 
Speed of implementation: The implementation speed of the KlimaTicket Ö depended on 
factors  such  as  existing  transport  structures,  network  capacity,  and  central  coordination. 
Austria’s  prior  experience  with  regional  annual  tickets  provided  a  strong  foundation  for 
national expansion. The initiative was developed over 18 months, with pre-sales starting in 
October  2021  and  full  rollout  across  all  federal  regions  by  January  2022.  This  swift 
implementation  was  enabled  by  political  support,  effective  stakeholder  coordination,  and 
established  regional  models.  OV-chipkaart  was  introduced  in  Rotterdam  in  2005  and 
reached national coverage in 2014. Speed of implementation would be increased now, due 
to technological progress. 
Replicability: The  KlimaTicket Ö model is replicable  in other Member States, offering  an 
affordable,  self-financing  alternative  to  fully  subsidised  systems.  With  strong  coordination 
and investment, it can be adapted to different contexts, especially in urbanised countries with 
high car use and climate ambitions. 

Details 
affecting 
delivery 

- 

Source 
(impacts): 

Austria’s “KlimaTicket” to promote low-carbon mobility | OECD 
Fare's Fair: Experiences and Impacts of Fare Policies 
ClimateTicket Report 2022 
https://www.bmimi.gv.at/themen/mobilitaet/1-2-3-
ticket/fakten.html#:~:text=Rechtliche%20Umsetzung%3A%20Zustimmung%20%C3%BCbe
r%20Parteigrenzen,April%202021%20in%20Kraft%20getreten. 

Table 6-17: On-demand transport 

Name of 
the 
supporting 
measure: 

Short 
description 

Geographic
al scope 

Category/ty
pe 
measure 

of 

Rationale 

Source 

On-demand transport    

Flexible, demand-responsive transport services (DRT/ODT) that adapt routes and schedules 
to real-time passenger needs, bridging gaps in conventional public transport and improving 
accessibility, particularly in rural or underserved areas.  

BE, DE, ES, NL (similar schemes implemented in other MSs) 

Regulation & standards 

Addresses structural limitations of conventional public transport in low-density or dispersed 
demand areas, reducing car dependence, enhancing accessibility, and contributing to modal 
shift and emission reductions. 

DNV_2018-03_DELIJN_DE_en (3).PDF 
SMARTA-GP-Ring-a-Link.pdf 
The SMARTA Project » VallibÃºs Connecta’t 
5.-Vallibus-Connectat-ES.pdf 
9-Texelhopper-DRT-NL.pdf 

105 

 
 
 
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Name of 
the 
supporting 
measure: 

On-demand transport    

De Lijn Flex - De Lijn 

Affected 
Stakeholder 

Passengers in rural/suburban/underserved areas, low-income households, elderly, students, 
tourists, people with disabilities. 

Expected 
impacts 

Effectiveness:  Improves  accessibility  and  service  responsiveness;  measurable  ridership 
growth (e.g. sprinti, Ring a Link). Potential reduction in CO2 emissions due to reduced use 
of private cars and inefficient public transport. 
Benefits:  Enhances  social  inclusion,  supports  modal  shift,  reduces  emissions  (especially 
with electrified fleets), strengthens multimodal integration. 

Costs  (social  and  public):  Requires  subsidies,  digital  platforms,  vehicles,  and  driver 
resources; operational costs can be high with low occupancy. The reliance on public funding 
varies  depending  on  the  structure  of  the  scheme,  operational  costs  and  integration  with 
public transport. 
Context: Implemented in several municipalities/regions across different MSs. 
Scalability: Proven transition from pilots to region-wide coverage (e.g. sprinti, De Lijn Flex); 
adaptable to community and tourism contexts. 
Speed  of  implementation:  Pilots  scaled  up  to  regional  services  within  2–3  years  when 
funding, regulation, and user engagement are in place. Heavily dependent on prior existence 
of digital infrastructure, alongside ability to connect to standard public transport schemes. 
Replicability:  High  across  EU  regions  with  adequate  funding  and  digital  infrastructure; 
requires provisions for digitally excluded groups. 

Details 
affecting 
delivery 

Source 
(impacts): 

- 

See above. 

Table 6-18: Urban transport planning towards modal shift - Superblock model 

Name of 
the 
supporting 
measure: 

Short 
description 

Geographic
al scope 

Category/ty
pe 
measure 

of 

Rationale 

Urban transport planning towards modal shift - Superblock model 

Urban planning plays a key role in reorganising space to prioritise public transport and active 
mobility over private cars, especially in cities with limited public space. Superblocks are a 
specific  tool  that  restrict  car  traffic  in  designated  areas  to  free  up  space  for  sustainable 
transport and community use. By limiting access to internal roads, removing parking, and 
ensuring public transport accessibility, superblocks reduce car dependence and offer climate 
and  health  benefits.  They  primarily  target  residents,  encouraging  a  shift  to  alternative 
transport modes. 

ES, AT, DE 

Regulation & standards 

Superblocks  are  implemented  as  a  response  to  the  persistent  dominance  of  car-bound 
mobility, a major source of urban GHG emissions. Traditional urban planning and institutional 
structures often favour car infrastructure, making it difficult to achieve meaningful shifts to 
public or active transport. Superblocks address this by reducing space allocated to cars and 

106 

 
 
 
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Name of 
the 
supporting 
measure: 

Urban transport planning towards modal shift - Superblock model 

restricting  vehicle  access  within  designated  zones,  thereby  encouraging  a  shift  to  more 
sustainable  transport  modes.  Their  success  often  depends  on  reorganising  nearby  public 
transport networks to ensure viable alternatives to car use. 

Source 

The Superblock model: A review of an innovative urban model for sustainability, liveability, 
health and well-being - ScienceDirect 
https://www.kiezblocks.de/ 

Affected 
Stakeholder 

Households 

Effectiveness:  Effectively  incentives  the  adoption  of  alternative  transport  modes  as  the 
space dedicated to cars is reduced. Higher effectiveness to be reached with complementary 
measures focusing on public transport development. 
Benefits: In Barcelona, the Barcelona City Council estimated that the implementation of the 
503 superblocks in the city would resolve in a 19.2% reduction in car usage, and translated 
public transport, cycling or walking. 

Costs (social and public): The measure does not require large public expenditure to be set 
up. Most changes to urban mobility do not require significant investment, although temporary 
and permanent installations to increase quality of life in affected areas do require investment. 
If  coupled  with  an  improvement  of  public  transport,  such  investments  should  also  be 
considered. 
Context:  Implemented  in  Spain  (Barcelona),  Austria  (Vienna)  and  Germany  (Berlin), 
although with different modalities. 
Scalability:  The  scalability  of  superblocks  depends  on  both  technical  and  social  factors. 
Grid-like urban layouts and strong public transport networks support implementation, though 
additional investment may be needed to boost capacity. Social acceptance can be a barrier, 
with concerns over reduced mobility or gentrification, as seen in Barcelona’s Poblenou. To 
maximise impact and acceptance, superblocks should be prioritised in areas where they are 
most effective, such as more deprived neighbourhoods where benefits are greater. 
Speed  of  implementation:  Superblocks  can  be  implemented  in  the  short  term,  with 
planning,  consultation,  and  public  participation  being  the  most  time-consuming  phases. 
Engaging  citizens  early  helps  build  support  and  reduce  resistance.  Planning  must  also 
account for diverse stakeholder needs, including local businesses and emergency services. 
While full implementation may take several years, as seen in Vienna’s four-year Supergrätzl 
project, positive effects (like reduced traffic) often appear within the first year of rollout. 
Replicability:  The  superblock  model  is  highly  replicable  in  urbanised  Member  States, 
particularly  where  car  use  remains  high  and  public  transport  measures  are  underused.  It 
offers strong potential to reduce traffic and support urban decarbonisation. 

- 

Changing the urban design of cities for health: The superblock model - 
ScienceDirectITS_European_Congress_2023_Lisbon.pdf 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

107 

 
 
 
 
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Table 6-19 Tax deductibility for ZEVs 

Name of 
the 
supporting 
measure: 

Short 
description 

Tax deductibility for ZEVs 

Tax  deductibility  of  vehicle  purchase  for  companies  depend  on  the  emission-level.  High-
emission  cars  cannot  be  deducted  completely.  (BE:  tax  deductibility  for  company  cars 
depending on type of fuel and CO2 emissions. Maximum deductibility for ICE purchase 2025: 
75%, 2026: 50%; 2027: 24%; 2028: 0%) 

Geographic
al scope 

BE 

Category/ty
pe 
measure 

of 

Rationale 

Financing - Tax incentives 

In view of higher procurement costs, the use of ZEVs is not yet sufficiently attractive for many 
companies.  Furthermore,  investments  must  be  made  in  the  development  of  charging 
infrastructure. The higher tax deductibility of ZEV procurement counteracts these obstacles. 
The  decreasing  deductibility  of  ICEVs  makes  it  easier  to  plan  and  creates  an  increasing 
incentive for the procurement of ZEV for company fleets. 

Source 

https://www.kbcbrussels.be/business/en/products/credit/fiscaliteit-
bedrijfswagens.html#:~:text=The%20tax%20deductibility%20of%20the%20vehicle%20and
%20fuel,minimum%20of%2050%25%20and%20a%20maximum%20of%20100%25.;Taxati
on%20of%20company%20cars%20|%20LeasePlan%20Belgium 

Affected 
Stakeholder 

Companies 

Effectiveness: effectively reduces the cost disadvantage of ZEV for companies; coupling 
with charging infrastructure funding and potentially ZEV mandate makes sense 
Benefits: commercial registration with share of 60% of new car registrations; high impact, 
as conventional vehicles are also affected  
Costs (social and public): Tax shortfalls due to higher ZEV deductibility can be offset by 
lower ICEV deductibility; higher costs for owners of conventional vehicles 
Context: Implementation so far only in few countries, but highly effective 
Scalability: No restrictions – applicable to all companies 
Speed  of  implementation:  On  the  basis  of  previous  experience,  rapid  implementation 
should be possible. 
Replicability: high replicability possible; high potential in countries with a high proportion of 
commercial registrations and good availability of charging infrastructure 

The availability of ZEV models and charging infrastructure must be further expanded. The 
development of the second-hand car market and the residual value of ZEVs is also important. 

https://alternative-fuels-observatory.ec.europa.eu/general-information/news/belgium-
record-year-bevs-285-market-share-2024 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

108 

 
 
 
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Table 6-20 Taxation of private use of company cars 

Name of the 
supporting 
measure: 

Taxation of private use of company cars 

Taxation deductions regarding the private use of company cars are usually linked to the 
car’s emissions. Deduction is higher for low emitting cars/ ZEV.  

Short 
description 

BE: Private users of company cars have to pay a monthly solidarity contribution (depending 
on emissions and fuel type; ZEV's contribution is reduced to a minimum amount) 

AT: For employees, the private use of a zero-emission company car, and the electricity to 
charge it, are exempt from taxation 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

BE, AT 

Financing - Tax incentives 

Company cars are often allowed to be used for private purposes. The tax deductibility of 
the monetary advantage associated with private use is a decisive factor in determining the 
attractiveness of different powertrain variants. The higher deductibility of ZEVs increases 
the monetary advantage for company car users if they choose a ZEV over an ICEV. 

https://www.kbcbrussels.be/business/en/products/credit/fiscaliteit-bedrijfswagens.html 
https://www.bmf.gv.at/themen/steuern/arbeitnehmerinnenveranlagung/pendlerfoerderung-
das-pendlerpauschale/sachbezug-kraftfahrzeug.html 

Affected 
Stakeholder 

Employees 

Effectiveness: effectively increases attractiveness of ZEVs for employees; coupling with 
private charging infrastructure funding  
Benefits: high impact, as conventional vehicles are also affected and company cars of 
high relevance concerning new car registrations 
Costs (social and public): Tax shortfalls due to higher ZEV deductibility could be offset 
by lower ICEV deductibility; higher costs for owners of conventional vehicles 
Context: Implementation so far only in few countries, but highly effective 
Scalability: No restrictions – applicable to all companies  
Speed of implementation: On the basis of previous experience, rapid implementation 
should be possible. 
Replicability: high replicability possible; high potential in countries with a high proportion 
of commercial registrations and good availability of charging infrastructure 

The availability of ZEV models and charging infrastructure must be further expanded. The 
development  of  the  second-hand  car  market  and  the  residual  value  of  ZEVs  is  also 
important. 

Internal expert. 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

109 

 
 
 
 
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Table 6-21 ZEV quotas on company fleets renewals 

Name of the 
supporting 
measure: 

Short 
description 

ZEV quotas on company fleets renewals 

Companies  have  to  meet  quotas  for  renewals  to  their  company  fleet.  If  this  regulation 
applies may depend on the company’s size.  

FR:  LOM:  company  fleets  with  more  than  100  vehicles  must  meet  the  quota  of  electric 
vehicles on fleet renewals of 20% (2024), 70% (2030), 95% (2032) 

Geographical 
scope 

FR 

Category/type 
of measure 

Regulation & standards 

Mandatory targets for ZEVs for larger corporate fleets create a planning certainty that all 
parties can align themselves with. For example, the expansion of the charging infrastructure 
can be aligned with this, and the use of ZEV can be extended from initially very suitable 
applications to increasingly challenging ones. 

In addition, the share of ZEV in the second-hand market can be well planned in advance 
on this basis. 

https://te-cdn.ams3.cdn.digitaloceanspaces.com/files/EN_2024_02_Summary_Reform-
French-company-car-law.pdf 

Companies 

Effectiveness: effectively increases ZEV uptake in company fleets; coupling with 
charging infrastructure funding and increased tax deductibility of ZEVs  
Benefits: commercial registration with share of 60% of new car registrations; high impact 
if mandatory and ambitious targets are set 
Costs (social and public): Requires companies to spend more on their fleets and to 
make additional investments in charging infrastructure. 
Context: So far only implemented as non-binding targets at national level; particularly 
problematic for smaller companies due to high additional costs when converting fleets. 
Scalability: Should initially be limited to larger fleets  
Speed of implementation: A quick introduction is conceivable, but target values should 
only increase slowly. 
Replicability: high replicability possible; high potential in countries with a high proportion 
of commercial registrations and good availability of charging infrastructure 

FR: Only targets 0,1% of companies. 2/3rd of companies failed to achieve the quota. Law 
doesn’t include control or penalties. 

https://te-cdn.ams3.cdn.digitaloceanspaces.com/files/EN_2024_02_Summary_Reform-
French-company-car-law.pdf 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-22 Minimum e-mobility infrastructure requirements at buildings, parking spaces 

Name of the 
supporting 
measure: 

Minimum e-mobility infrastructure requirements at buildings, parking spaces 

Short 
description 

DE: Electric Mobility Infrastructure Act (GEIG), implementing Article 8(2) to (6) of Directive 
(EU) 2018/844 (since 2021): 

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Name of the 
supporting 
measure: 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Minimum e-mobility infrastructure requirements at buildings, parking spaces 

When residential buildings with at least 5 parking spaces or non-residential buildings with 
at least 6 parking spaces are newly built, there must be a protective tube installed for every 
third  parking  space  (every  third  for  non-residential  buildings).  Non-residential  buildings 
need to build one charging point. If buildings undergo major renovation, similar regulations 
take place. From 2025 all non-residential buildings with more than 20 parking spaces must 
install a charging point. 

BE: Mandatory availability of charging points at non-residential buildings 

FR: obligations for non-residential/ mixed buildings to build charging infrastructure if more 
than 20 parking slots and other regulations for renovation etc. 

DE, BE, FR 

Regulation & standards 

Car owners who live in rented or multi-family houses are not always able to install or use a 
private  charging  infrastructure  in  the  building  without  restrictions.  At  the  same  time,  this 
often  remains  the  simplest  and  most  cost-effective  charging  option.  In  view  of  this,  it  is 
essential  enabling  the  setup  of  charging  infrastructure  in  such  places  in  a  low-threshold 
manner, by means of requirements for landlords or property owner associations. 

https://www.bmwk.de/Redaktion/DE/Artikel/Service/Gesetzesvorhaben/gebaeude-
elektromobilitaetsinfrastruktur-gesetz.html 

https://www.pwclegal.be/en/news/update-on-the-requirement-of-charging-points-at-non-
residential-.html 

Landlords, private households 

Effectiveness: The German GEIG, in combination with WEmoG, addresses a main 
barrier for potential e-mobility users living in apartment buildings. 
Benefits: Huge share of the sector and its GHG emissions potentially supported by the 
measure (passenger cars ~ 60 % of road transport; share of apartment house inhabitants 
depends on MS characteristics – Germany: 70 % of households don’t own a detached 
house) 
Costs (social and public): No financial contribution from public authorities. Cost burden 
for industry potentially high (around 1,000 to 7,000 € per charging point). 
Context:    In  Germany:  Ongoing  public  discussion  on  how  such  requirements  inhibit 
housing construction. 

According  to  practitioners,  obligations  resulting  from  the  German  GEIG  are  too  often 
unknown to municipal administration and therefore lacks effectiveness. 

As above. 

111 

 
 
 
 
 
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Table 6-23 Non-discriminatory access to public charging infrastructure 

Name of the 
supporting 
measure: 

Short 
description 

Non-discriminatory access to public charging infrastructure 

Controlling the implementation of the non-discriminatory clause of the AFIR262 at national 
level:  “Prices  charged  by  operators  of  publicly  accessible  recharging  points  shall  be 
reasonable, easily and clearly comparable, 
transparent  and  non-discriminatory,  regardless  of  the  electric  mobility  service  provider. 
Operators of publicly accessible recharging points shall not discriminate, through the prices 
charged, between end users and mobility service providers or between different mobility 
service  providers.  However,  the  level  of  prices  may  be  differentiated,  but  only  if  the 
differentiation is proportionate and objectively justified.” 

Geographical 
scope 

EU 

Category/type 
of measure 

Regulation & standards 

In order to ensure fair competition and attractive prices at public charging infrastructure, it 
is important that electricity providers (e-mobility providers – EMP) are not discriminated by 
charging point operators (CPO) through excessive costs. This is already legally established 
through AFIR. However, there is still a lack of enforcement at the national level. 

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1804 

Charge point operators, e-mobility providers 

Effectiveness: increases price competition at charging stations and leads to lower price 
differences regardless of the contract chosen with a charging electricity provider 
Benefits: - 
Costs  (social  and  public):  More  favourable  charging  price  at  public  charging 
infrastructure; reduces the market power of large CPOs 
Context:  Non-discrimination  clause  already  implemented  in  the  AFIR,  but  not  yet 
sufficiently implemented at country level 
Scalability: should be applied to all CPOs; as a condition for the allocation of public spaces 
for charging infrastructure.  High  impact expected for individuals that regularly use public 
charging. 
Speed of implementation: Fast implementation possible 
Replicability: AFIR forms the basis for implementing the measure in all countries 

Non-discriminatory access to public charging infrastructure must be monitored at national 
level. 

Internal expert. 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

262 Alternative Fuels Infrastructure - European Commission 

112 

 
 
 
 
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Table 6-24 Fair allocations of public land for charging infrastructure and prevention of monopoly formation 

Name 
of the 
suppor
ting 
measu
re: 

Short 
descript
ion 

Geogra
phical 
scope 

Catego
ry/type 
of 
measur
e 

Rationa
le 

Source 

Affecte
d 
Stakeh
older 

Expect
ed 
impacts 

Fair allocations of public land for charging infrastructure and prevention of monopoly 
formation 

Ensuring  fair  competition  for  tenders  for  charging  infrastructure.  Prevention  of  monopoly 
formation. 

DE: According to the Federal Cartel Office, public authorities such as cities and municipalities are 
not acting in a sovereign capacity when allocating public spaces for charging infrastructure, but 
in an economic capacity. When offering land, dominant local authorities must therefore observe 
the  prohibition  of  abuse  under  antitrust  law.  Objectively  unjustified  preferential  treatment, 
particularly of their own municipal utility, must be avoided. 

DE 

Regulation & standards (competition) 

According  to  experts,  public  land  for  the  construction  of  charging  infrastructure  is  sometimes 
awarded  without  a  competitive  tendering  process,  particularly  at  the  municipal  level.  This 
sometimes results in municipal and regional monopolies for public charging infrastructure, which 
prevent  attractive  pricing  in  a  competitive  environment.  Consistent  application  of  public 
procurement law would strengthen competition. 

https://www.bundeskartellamt.de/SharedDocs/Publikation/DE/Sektoruntersuchungen/Sektorunte
rsuchung_Ladesaeulen_Abschlussbericht.pdf?__blob=publicationFile&v=3 

Charge point operators, e-mobility providers 

Effectiveness: increases the number of CPOs and avoids regional monopolies; this results in 
greater competition and avoids monopoly and high price differentials for public charging 
Benefits: - 
Costs  (social  and  public):  more  favourable  charging  price  at  public  charging  infrastructure; 
reduces the market power of large CPOs 
Context: there is a risk of monopolies, particularly at municipal level, as charging infrastructure 
is often set up by municipal utilities without competition 
Scalability: Public land should be allocated on a competitive basis as standard 
Speed  of  implementation:  only  relevant  for  the  allocation  of  new  public  spaces  for  charging 
infrastructure 
Replicability: Applicable in countries with comparable deficits in the allocation of public land 

Details 
affectin
g 
delivery 

None 

113 

 
 
  
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Name 
of the 
suppor
ting 
measu
re: 

Source 
(impact
s): 

Fair allocations of public land for charging infrastructure and prevention of monopoly 
formation 

Internal expert 

Table 6-25 Price transparency for public charging 

Name of the 
supporting 
measure: 

Price transparency for public charging 

AFIR includes regulation for transparent charging prices. 

DE:  

Common  standards  should  create 
the 
electromobility  ecosystem.  A  first  step  towards  national  implementation  is  to  record  the 
status  quo  in  the  National  Strategy  Framework  (NSR).  This  defines  specific  individual 
measures to achieve the targets. The final version is to be submitted to the EU Commission 
for publication by 31 December 2025. 

interoperability  and  decisively  advance 

CPOs of publicly accessible charging points must provide static and dynamic data on their 
charging facilities free of charge by 14 April 2025 at the latest (Art. 20, Para. 2, 3, 4). A 
transitional period until 14 April 2026 is provided for the provision of data in the DATEX II 
standard. 

To this end, operators shall set up an application programming interface (API) that enables 
non-discriminatory and unrestricted access to the required data.  

By 2026 there will be national online services with information about ad-hoc charging prices 
called “Nationaler Zusatzpunkt” 

EU, DE 

Regulation & standards 

Price transparency is necessary to create competition between providers of public charging 
infrastructure  and  to  give  customers  the  opportunity  to  access  locations  with  favourable 
charging  prices.  Today,  the  price  for  ad  hoc  charging  in  particular  cannot  be  known  in 
advance.  AFIR  already  sets  out  requirements  for  charging  infrastructure  operators  to 
publish  charging  prices.  However,  this  now  needs  to  be  implemented  at  country  level. 
Experts assume that it will be implemented across Europe by 2026 

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1804  
https://nationale-leitstelle.de/ladeinfrastruktur-im-eu-kontext/ 
https://www.bmwk.de/Redaktion/DE/Artikel/Service/Gesetzesvorhaben/gebaeude-
elektromobilitaetsinfrastruktur-gesetz.html 

Charge point operators, e-mobility providers 

Effectiveness:  Price  transparency  increases  competition  and  makes  ad-hoc  charging 
without a fixed contract at public charging infrastructure more attractive 
Benefits: transport sector only; avoids high price differentials for public charging 
Costs  (social  and  public):  More  favourable  charging  price  at  public  charging 
infrastructure; reduces the market power of large CPOs 

114 

Short 
description 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

 
 
 
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Name of the 
supporting 
measure: 

Price transparency for public charging 

Context: Requirement for price transparency by AFIR; however, national implementation 
is still pending or in the process of being realised 
Scalability: to be applied to all public charging points 
Speed of implementation: Implementation at national level over the next two years 
Replicability: Implementation in all EU MS in accordance with AFIR requirements 

Details 
affecting 
delivery 

Source 
(impacts): 

None 

Internal expert. 

6.3  BUILDINGS  -  RENEWABLE-BASED  &  RENEWABLE-READY  HEATING 

TECHNOLOGIES 

This subsection contains the expanded measures from the long list of measures, in table format for buildings 
- renewable-based & renewable-ready heating technologies. 

Table 6-26 Upgrading Training Assistance Act (Aufstiegs-BAföG) 

Name of 
the 
supporting 
measure: 

Short 
description 

Upgrading Training Assistance Act (Aufstiegs-BAföG) 

Germany offers financial support to individuals participating in vocational training through the 
Upgrading  Training  Assistance  Act,  commonly  known  as  Aufstiegs-BAföG.  This  program 
provides funding to cover training costs and living expenses for those attending vocational 
training courses aimed at career advancement. In 2023, approximately 192,000 individuals 
received funding under this scheme. While not exclusively for the renewable energy sector, 
this  support  is  available  to  trainees  across  various  fields,  including  those  pursuing 
qualifications in low-carbon technologies. 

Geographic
al scope 

DE 

Category/ty
pe 
measure 

of 

Rationale 

Source 

Affected 
Stakeholde
r 

Expected 
impacts 

Financing - grants/subsidies 

Financial support for individuals during vocational training makes reskilling more financially 
viable, allowing trainees to pay for their living expenses during their training. 

https://www.bmbf.de/EN/Education/ContinuingEducationAndTraining/FinancialSupport/finan
cialsupport.html 

Trainees, Professionals 

Effectiveness: By reducing financial barriers, the program encourages more individuals to 
pursue  training  in  renewable-ready  heating  technologies,  thereby  increasing  the  skilled 
workforce. 

Complements all measures aimed at increasing numbers of installations by addressing the 
bottleneck of installer shortages. 

115 

 
 
 
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Name of 
the 
supporting 
measure: 

Upgrading Training Assistance Act (Aufstiegs-BAföG) 

Benefits:  While  not  exclusively  focused  on  renewable  energy,  the  program's  inclusivity 
allows for significant impact in this sector by supporting relevant vocational training. Specific 
advantages for trainees on renewable heating courses could further improve uptake of these 
course specifically. 

Cost (social and public): In 2023, approximately €880 million was allocated to the program, 
supporting around 192,000 individuals. 

Context: Germany’s vocational education training system is among the best in the world, so 
it may be easier in Germany to persuade people to take courses. 

Scalability:  The  program's  framework  allows  for  expansion,  enabling  more  individuals  to 
receive support as demand for renewable energy professionals grows. 

Speed  of  implementation:    The  measure  focuses  on  making  training  that  already  exists 
more financially feasible for trainees. As such, the implementation can be achieved quickly. 
Training itself may take anywhere from a day to several months per course. 

Replicability:  Other  countries  can  adopt  similar  financial  support  mechanisms  to  address 
skills shortages in their renewable energy sectors, tailoring the program to local contexts. 

Decisions required on who is eligible, how much support is provided, how to apply, and how 
to ensure awareness of the programme. 

https://www.cedefop.europa.eu/en/tools/vet-in-europe/systems/germany-u3 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-27 Image campaign to attract young talent to the skilled trades 

Name of the 
supporting 
measure: 

Short 
description 

Image campaign to attract young talent to the skilled trades 

The German Handwerk Image Campaign, running since 2010, aims to highlight the diverse 
career opportunities  in skilled trades. It promotes  a modern  image of craftsmanship  and 
encourages young people to pursue apprenticeships in one of over 130 trades. Installers 
of renewable-ready technologies are included in this scheme. 

Geographical 
scope 

DE 

Category/type 
of measure 

Rationale 

Awareness, technical support and training 

Improving the image of the skilled trades should drive more young people to pursue these 
careers, leading to an increase in the number of installers available for renewable-based 
and renewable-ready heating technologies. 

Source 

https://www.zdh.de/ueber-uns/imagekampagne-handwerk/ 

Affected 
Stakeholder 

Expected 
impacts 

Young people, Skilled trades sector 

Effectiveness: Complements financial incentives aimed at promoting vocational training in 
sustainable energy sectors. 

Benefits: An influx of skilled professionals can accelerate the adoption and maintenance 
of  renewable  heating  systems,  contributing  to  significant  greenhouse  gas  emission 
reductions. 

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Name of the 
supporting 
measure: 

Image campaign to attract young talent to the skilled trades 

Cost (social and public): Funded by the German Confederation of Skilled Crafts (ZDH) 
and supported by various stakeholders. 

By  enhancing  the  skilled  labour  pool,  the  campaign  supports  industry  growth  without 
directly imposing costs on consumers. 

Investing in the image of skilled trades yields societal benefits, including job creation and 
progress towards environmental sustainability goals. 

Context: Germany’s vocational education training system is among the best in the world, 
so it may be easier in Germany to persuade young people to learn a trade. 

Scalability: Information measures are easy to roll out and expand. 
Speed of implementation: Information measures are easy and fast to roll out. 
Replicability: As an information measure, this should be easily replicable in other member 
states, though cultural differences may require slightly different messaging or medium. 

Details 
affecting 
delivery 

Each Member State will need to consider just what it is that would make the youth in the 
country  interested  in  learning  a  trade.  If  workers  in  the  skilled  trades  do  not  have  good 
working conditions in a Member State, this measure may not be suitable. 

Source 
(impacts): 

https://www.cedefop.europa.eu/en/news/germany-rebranding-apprenticeships-skilled-
craft-trades-combat-labour-shortage  

https://www.gisreportsonline.com/r/germany-vocational-education-system/ 

Table 6-28 Mandatory energy and carbon requirements for new and existing buildings 

Name of the 
supporting 
measure: 

Short 
description 

Mandatory energy and carbon requirements for new and existing buildings 

Germany - (Gebäudeenergiegesetz (GEG)):  
This  act  creates  a  body  of  rule  regarding  energy  requirements  for  new  and  existing 
buildings,  for  the  use  of  renewable  energies  for  the  provision  of  heating  and  cooling  in 
buildings. 

Three core instruments have been adopted: 

1) 65% Renewable Heat Requirement for the building stock:  
from June 30, 2026, in municipalities with a population of 100,000 or more and after June 
30,  2028,  in  municipalities  with  a  population  of  up  to  100,000,  all  heating  system 
replacements  must  ensure  that  at  least  65%  of  energy  comes  from  renewable  sources. 
This  is considered the most effective  measure  due to  its  impact on  the "Heating Market 
Dynamics," ensuring compliance with energy efficiency (EE) standards for heating systems.  

2) 65% Renewable Heat Requirement for new buildings: 
since January 2024, heating systems with 65% renewable energy must be installed in new 
builds. There are transitional periods, e.g. for connection to a future heating network. The 
obligation  applies  to  all  new  buildings  for  which  a  building  application  is  submitted  from 
2024.  
January 
stock 
Outside  a  new-build  area: 

regulation  as 

the  building 

same 

for 

3) Enhanced Energy Standards in the Building Energy Act (GEG).  
New Buildings: from January 2025, energy standards for residential and non-residential 
new constructions have to meet the EH/EG-55 standard for annual primary energy demand. 
Existing Buildings: when renovating a building, minimum standards must be observed, 
for example for the thermal insulation of the building envelope or the energy standard of 
the  heating  system.  Various  replacement  and  retrofitting  obligations  are  also  stipulated, 

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Name of the 
supporting 
measure: 

Mandatory energy and carbon requirements for new and existing buildings 

which  owners  must  comply  with  -  regardless  of  whether  they  carry  out  a  renovation 
(exceptions apply).  

France - Regulation for new construction (RE2020): 
France's  RE2020  regulation  enforces  strict  energy  and  carbon  limits  for  buildings.  To 
achieve EPC A or B, only renewable energy (RES) and heat pumps (HP) are allowed for 
heating. New dwellings must use low-carbon systems like heat pumps or biomass. From 
2025, gas heating is effectively banned due to CO
 limits. The project’s aim was to help 
energy-poor  households  (particularly  tenants  in  the  private  rented  sector  and  -  in 
descending order - also owner occupiers and tenants in social housing) and convince and 
financially support their landlords to carry out works (with a subsidy of up to 50% of the total 
cost and a maximum amount of EUR 2,000). 

₂

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

DE, FR 

Regulation & standards 

Binding  standards  help  to  overcome  the  lack  of  incentives  by  making  certain  measures 
mandatory  on  the  one  hand  and  ensuring  that  voluntary  refurbishment  measures  are 
carried out in an efficient manner on the other hand. 

https://www.bmwsb.bund.de/Webs/BMWSB/DE/themen/bauen/energieeffizientes-bauen-
sanieren/gebaeudeenergiegesetz/gebaeudeenergiegesetz-node.html 

https://www.ecologie.gouv.fr/politiques-publiques/reglementation-environnementale-
re2020 

Affected 
Stakeholder 

Property owners 

Expected 
impacts 

Effectiveness: As requirements are mandatory, the policy should result in heating system 
upgrades, but this measure requires complementary feasibility measures to be put in place 
to improve feasibility to be effective. 

Benefits: Both regulations target the building sector comprehensively, encompassing new 
constructions and, progressively, existing buildings. 

GEG: Expected annual reductions in GHG emissions are equal to 2 Mt in 2025, increasing 
to 8.4 Mt in 2040. 

This considers direct net reductions in GHG emissions (excluding effects on transformation 
sector). 

Cost (social and public): Property owners bear the initial investment costs for upgrading 
heating systems, which may be partially passed on to tenants through rent adjustments. 
The  costs  will  likely  be  passed  on  to  tenants  through  rent  increases  unless  regulated 
against. This may have social costs as the cost of living rises. 

Context:  A  substantial  portion  of  Germany's  building  stock  was  constructed  before  the 
implementation of modern energy efficiency standards. Consequently, many buildings are 
energy  inefficient, necessitating  extensive retrofitting to meet current  energy and carbon 
requirements. 

Scalability:  The  GEG  has  scalability  built  into  its  design  through  its  phased  approach. 
RE2020  applies  to  all  new  construction  already,  which  has  fewer  complications  than 
retrofits. 

Speed of implementation: With GEG’s phased approach, initial savings can be achieved 
relatively quickly, with increasing effectiveness over time as the measure expands. 

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Name of the 
supporting 
measure: 

Details 
affecting 
delivery 

Mandatory energy and carbon requirements for new and existing buildings 

Replicability:  Countries  still  heavily  reliant  on  gas  or  oil  heating  (e.g.,  Poland,  Czech 
Republic)  could  implement  similar  mandates  to  accelerate  the  transition  to  renewables. 
However,  the  pace  of  implementation  would  depend  on  whether  affordable  alternative 
heating systems (heat pumps, district heating) are readily available to be installed, which 
may not be the case in countries where there is significant skills scarcity. In countries with 
weaker regulatory enforcement, it may be difficult to enforce compliance. 

Specifically, regarding France’s RE2020, countries where new construction rates are low 
would see little benefit. 

Enforcing a mandatory standard doesn’t necessarily mean that building owners can afford 
to replace/renovate their heating system or that there are sufficient tradespeople available 
to carry out works. Measures such as this should be combined with measures that improve 
feasibility such as subsidies, and measures to address bottlenecks such as skill scarcity. 

Additional considerations will need to be made on when the compliance deadline will be set 
and what the penalties for non-compliance will be. 

Source 
(impacts): 

As above. 

Table 6-29 Energy poverty mediation 

Name of the 
supporting 
measure: 

Short 
description 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Energy poverty mediation 

Mediation Précarité Energétique started as an experimental project as part of the SLIME 
programme (cf. Section 3.5.1) co-financed by the city of Lille (60-70%) and several other 
public or charitable organisations with a focus on housing (e.g., Conseil départemental du 
Nord,  Fondation  Abbé  Pierre,  Association  Graal),  that  was  formalized  as  a  partnership 
agreement and implemented in the cities of Lille, Lomme and Hellemes between 2014 and 
2018. The project had an overall budget of around EUR 370,000 (including engineering and 
operations). 

Lille – FR 

Financing - grants/subsidies 

Providing subsidies to landlords to carry out works provides an incentive to improve energy 
efficiency  in  the  property  by  lowering  the  upfront  cost  while  increasing  the  value  of  the 
property. 

https://op.europa.eu/en/publication-detail/-/publication/a7aea3b3-350a-11ef-b441-
01aa75ed71a1 

Landlords, Tenants 

Effectiveness:  By  offering  subsidies  to  landlords,  the  project  effectively  mitigated  the 
reluctance to invest in energy efficiency, aligning the interests of both landlords and tenants. 

Benefits:  Focused  on  the  private  rented  sector,  which  often  includes  some  of  the  most 
energy-inefficient housing. 

Cost (social and public):  The overall project budget  was approximately €370,000, with 
significant contributions from the City of Lille and other organizations. Landlords bore 50% 
of  the  renovation  costs,  incentivized  by  subsidies,  while  tenants  benefited  from  reduced 
energy expenses without direct financial contributions. The project yielded social benefits, 

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Name of the 
supporting 
measure: 

Energy poverty mediation 

including  improved  living  conditions,  health  outcomes,  and  reduced  energy  poverty, 
outweighing the financial investments. 

Context:  Lille's  urban  setting,  with  a  significant  proportion  of  private  rentals,  made  it  an 
ideal  location  for  this  targeted  intervention.  The  collaborative  approach  among  local 
authorities and organizations facilitated effective implementation. 

Scalability:  The  project's  framework  can  be  adapted  to  other  urban  areas  with  similar 
housing challenges, provided there is adequate funding and stakeholder collaboration. 

Scaling would necessitate additional financial resources and trained mediators to manage 
increased 
effectively. 
caseloads 
This type of project, requiring collaboration between different groups, lends itself more to 
the local scale. 
Speed  of  implementation:  The  project  ran  over  a  4-year  period,  indicating  that  full 
implementation is a medium-term commitment 

Replicability:  The  mediation  model  is  transferable  to  other  municipalities  facing  energy 
poverty challenges, especially where private rentals  are prevalent.  Success depends on 
adapting 
funding. 
Effective  replication  requires  strong  partnerships  between  local  authorities,  housing 
organizations,  and  community  groups,  alongside  tailored  financial  incentives  to  address 
specific regional needs. 

local  contexts  and  securing  necessary 

the  approach 

to 

Details 
affecting 
delivery 

Delivery requires establishment of a mediation process and framework. 

Source 
(impacts): 

https://op.europa.eu/en/publication-detail/-/publication/a7aea3b3-350a-11ef-b441-
01aa75ed71a1 

Table 6-30 Subsidies for building renovation 

Name of 
the 
supporting 
measure: 

Short 
description 

Subsidies for building renovation 

Renovation of apartment buildings 2022-2030 (Estonia):  
This measure provides financial support for both the complete reconstruction of apartment 
buildings and, as an individual activity, the replacement of a heating device in the heating 
system of a gas, furnace or electric apartment building with a heating device using renewable 
energy sources, or the connection of these apartment buildings to a district heating network. 

Austrian Federal Government’s Renovation Initiative (Austria):  
Funds  are  made  available  for  subsidies  for  the  enhancement  of  the  thermal  quality  of 
residential buildings and the expansion of efficient heating systems, as well as for efficient 
new construction. The amount received is dependent on the achieved thermal quality and 
efficiency. 

MaPrimeRénov (France):  
MaPrimeRénov’  (MPR)  is  a  subsidy  scheme  to  help  households  with  energy  efficient 
renovation of their dwelling. The scheme is accessible to all households, but energy-poor 
applicants obtain a higher level of support. Currently there are two versions of the scheme: 
•  MPR  "Decarbonisation":  focusing  on  moving  away  from  fossil  fuel  (e.g.  heat  pump 

installation) 

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Name of 
the 
supporting 
measure: 

Subsidies for building renovation 

•  MPR  "Accompanied":  focusing  on  major  renovation  works  with  the  mandatory 

assistance of an independent counsellor.  

Bonuses exist for the switch of fossil fuels equipment to a low carbon technology. Levels of 
subsidies depend on the revenue of the customer, 

Federal  subsidy  for  efficient  buildings  (Bundesförderung  für  effiziente  Gebäude 
(BEG)) (Germany):  
This  funding  scheme  supports  individuals,  municipalities,  companies,  NGOs  in  improving 
energy  efficiency  of  houses  and  buildings.  From  2024,  the  measure  consists  in  a  base-
subsidy  of  30%  for  all  homeowners,  landlords,  companies,  non-profit  organizations  and 
municipalities,  which  replace  old  fossil  heating  systems.  An  additional  subsidy  of  30%  is 
granted to households with a taxable household income of a maximum of 40.000€ annually. 
Additional  subsidisation  can  be  received  (depending  on  the  situation  of  the  applicant), 
although the maximum subsidy is 70%. 

Eco-Fund (Slovenia):  

Eco-Fund  (Slovenian  Environmental  Public  Fund)  is  a  Slovenian  programme  aimed  at 
reducing  energy  poverty  among  most  vulnerable  citizens.  Incentives  for  energy  efficiency 
improvements can go up to €9,620 or €15,000 in the case the roof of the building is in bad 
condition.  Beneficiaries  can  obtain  such  incentives  for  a  number  of  energy-efficiency 
improvements,  including  the  installation  of  heat  pumps.  Incentives  come  in  the  form  of 
grants/subsidies and soft loans. 

EE, AT, FR, DE, SI 

Financing - grants/subsidies, Financing - Soft loans/loans 

Subsidies offset high up-front costs, making renovations more affordable. Specific support 
for energy -poor applicants ensures those least able to afford works can achieve energy use 
reductions through the renovations. 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/5149  
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/402  
https://www.anah.gouv.fr/sites/default/files/2024-01/202401_ChiffresCles2023_WEBA.pdf 
https://www.umweltbundesamt.de/sites/default/files/medien/11850/publikationen/projektion
en_2025-instrumentenpapier_korr_2.pdf 

https://zero500.ekosklad.si/kaj-je-program-zero500  

Geographic
al scope 

Category/typ
of 
e 
measure 

Rationale 

Source 

Affected 
Stakeholder 

Homeowners, Landlords, Tenants 

Expected 
impacts 

Effectiveness:  Subsidies  significantly  reduce  the  financial  burden  on  property  owners, 
making  renewable-ready  heating  systems  more  accessible.  These  programs  can 
complement low-interest loans and tax incentives, enhancing overall support and reducing 
total cost of renovations. They also complement measures designed to increase uptake such 
as  information  measures  and  mandatory  standards  by  making  implementation  based  on 
these measures more affordable. 
Benefits:  Programs  target  various  sectors,  including  residential,  commercial,  and  public 
buildings, aiming for widespread energy efficiency improvements. Depending on coverage 
the potential savings would be substantial. Improved energy efficiency can lead to reduced 
energy poverty and enhanced public health due to better living conditions. 

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Name of 
the 
supporting 
measure: 

Subsidies for building renovation 

Estonia: It is expected that the cumulative savings are 0.183 PJ in 2030. 

Austria: It is expected that the cumulative savings are 7.9 PJ (2014-2020). 

France:  Around  1.9  million  renovations  carried  out  under  scheme  2020-2023,  of  which 
around 900,000 heating system installations. 

Germany: 72,200 ktCO2 anticipated emission savings (2022-2040) 

Cost  (social  and  public):  For  the  most  part,  subsidies  are  government  funded.  While 
subsidies  reduce  initial  expenses,  property  owners  may  still  bear  a  portion  of  the  costs; 
however,  long-term energy savings can offset these investments. Targeted subsidies can 
reduce energy poverty, delivering social benefit. 

Estonia: €460million cumulative public budget (2022-2028) 

Austria: €381million cumulative public budget (2014-2020) 

France: €2billion per year public finance 

Germany: Total subsidy budget across 2021 and 2022 of €48billion. 

Context: 
Scalability:  These  programs  are  designed  to  be  scalable,  with  frameworks  that  can  be 
expanded  to  accommodate  more  applicants  as  additional  funding  becomes  available. 
Scaling up requires increased financial resources and administrative capacity to manage a 
higher volume of applications. 

Speed of implementation: The speed of implementation varies by program, depending on 
administrative processes, public awareness, and the availability of contractors to perform the 
renovations. 

Typically, a call for applications for a subsidy can be put out with a fast turnaround, but it 
may take time for savings to be achieved. 

Replicability: These subsidy models can be adapted to other countries, provided there is 
political  will,  available  funding,  and  a  supportive  policy  framework.  Successful  replication 
depends on factors such as the existing condition of the building stock, economic conditions, 
and the capacity of the construction industry to meet increased demand. Subsidy measures 
are suitable  for all other  Member States,  and the value and eligibility requirements of  the 
subsidy can be set based on the national context. 

Value,  eligibility  requirements,  and  length  of  time  the  subsidy  is  available  should  all  be 
considered based on the national context. 

For  maximum  efficacy,  subsidies  should  be  open  over  a  long  period  to  maximise  public 
awareness and understanding of their financing options. 

As above. 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-31 Tax deductions for renewable heating systems 

Name of the 
supporting 
measure: 

Short 
description 

Tax deductions for renewable heating systems 

Homeowners can deduct 20 % of the costs from the installation of new renewable heating 
systems from their income tax (ESanMV 2020; §35c EStG 2009). 20 % of the expenses 
and at most, EUR 40,000 per residential property is tax deductible, spread over three years. 
((§35c, para. 1, EStG 2009). Addresses citizens paying taxes in Germany who renovate 
their own house. The deduction can be claimed for through the income tax declaration. 

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Name of the 
supporting 
measure: 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Tax deductions for renewable heating systems 

Reduced VAT for buying and installing a heat pump applies in 15 EU MS. The amount of 
the reduction varies between 19% in Luxembourg and 75% in Greece. A VAT exemption 
for  buying  a  heat  pump  applies  in  two  Member  States  (Lithuania,  Bulgaria)  and  Great 
Britain. 

Sometimes  the  HP  has  to  fulfil  certain  requirements.  In  Romania  the  reduction  is  also 
applicable for solar thermal panels. 

DE 

LT, BG, AT, BE, CZ, EE, FR, EL, IE, IT, LV, LU, PL, PT, CY, RO, SI 

Financing - Tax incentives 

Exemption  from  VAT,  and/or  relief  on  other  tax  via  a  tax  credit  for  the  installation  of 
renewable-ready heating technologies offsets the high cost, reducing the financial burden 
on households 

https://clean-energy-islands.ec.europa.eu/countries/germany/legal/res-heating-and-
cooling/tax-regulation-mechanism-support-energy-efficient 

https://www.ehpa.org/wp-content/uploads/2023/09/EHPA_VAT-on-heat-pumps-in-Europe-
report_September-2023.pdf  

Affected 
Stakeholder 

Property owners 

Expected 
impacts 

Effectiveness: Tax incentives directly reduce the financial burden on homeowners, making 
renewable  heating  systems  more  accessible  and  attractive.  Tax  incentives  complement 
other  financial  measures  such  as  subsidies,  bringing  down  the  total  cost  of  installing  a 
renewable heating system. 

Benefits: By making renewable heating systems more affordable, these measures aim to 
significantly increase their penetration in the residential sector, thereby reducing reliance 
on fossil fuels. Widespread adoption of renewable heating systems can lead to substantial 
reductions in greenhouse gas emissions from the residential heating sector. 

Cost (social and public): The cost to the government is indirect, manifesting as reduced 
tax  revenues  due  to  deductions  and  lower  VAT  collections.  As  consumers  benefit  from 
reduced costs, manufacturers and installers may experience increased demand, potentially 
leading to economies of scale and reduced prices over time. The social benefits, including 
environmental improvements and the potential for reduced energy costs for households, 
could be expected to outweigh the loss in tax revenue. 

Context: Germany: With a significant portion of the population living in flats, tax deductions 
can  incentivize  individual  homeowners  and  associations  to  invest  in  renewable  heating 
systems.  Other  EU  Countries:  The  effectiveness  of  VAT  reductions  depends  on  factors 
such  as  average  income  levels,  existing  heating  infrastructure,  and  public  awareness  of 
renewable technologies. 

Scalability: These tax incentives can be scaled nationally and adapted by other countries, 
depending on fiscal capacity and policy priorities. 

Implementation requires adjustments to tax codes and effective communication strategies 
to inform eligible homeowners. 

Speed of implementation: Once legislated, tax incentives can be implemented relatively 
quickly, with homeowners able to benefit in the following tax year. 

Replicability: These measures are highly replicable, with adjustments to align with national 
tax systems and economic conditions. 

Success  depends  on  factors  such  as  public  awareness,  the  simplicity  of  the  application 
process, and the availability of qualified installers. 

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Name of the 
supporting 
measure: 

Details 
affecting 
delivery 

Tax deductions for renewable heating systems 

Income Tax Deductions (Germany): 

Eligibility:  Homeowners  who  renovate  their  own  residences  with  renewable  heating 
systems. 

Deduction  Details:  20%  of  the  installation  costs,  up  to  €40,000  per  property,  can  be 
deducted from income tax over three years.  

Procedure: The deduction is claimed through the homeowner's income tax declaration. 

VAT Reductions (Various EU Member States): 

Scope: Reduced VAT rates apply to the purchase and/or installation of heat pumps, varying 
by country. 

Requirements: In some countries, the heat pump must meet specific criteria to qualify for 
the reduced VAT rate. 

Source 
(impacts): 

As above. 

Table 6-32 Subsidies for building renovation 

Name of 
the 
supporting 
measure: 

Subsidies for building renovation 

Short 
description 

Renovation of apartment buildings 2022-2030 (Estonia): 
This measure provides financial support for both the complete reconstruction of apartment 
buildings and, as an individual activity, the replacement of a heating device in the heating 
system of a gas, furnace or electric apartment building with a heating device using renewable 
energy sources, or the connection of these apartment buildings to a district heating network. 

Austrian Federal Government’s Renovation Initiative (Austria): 
Funds  are  made  available  for  subsidies  for  the  enhancement  of  the  thermal  quality  of 
residential buildings and the expansion of efficient heating systems, as well as for efficient 
new construction. The amount received is dependent on the achieved thermal quality and 
efficiency. 

MaPrimeRénov (France): 

MaPrimeRénov’  (MPR)  is  a  subsidy  scheme  to  help  households  with  energy  efficient 
renovation of their dwelling. The scheme is accessible to all households, but energy-poor 
applicants obtain a higher level of support. Currently there are two versions of the scheme: 

-  MPR  "Decarbonisation":  focusing  on  moving  away  from  fossil  fuel  (e.g.  heat  pump 
installation) 

- MPR "Accompanied": focusing on major renovation works with the mandatory assistance 
of an independent counsellor. 

Federal  subsidy  for  efficient  buildings  (Bundesförderung  für  effiziente  Gebäude 
(BEG)) (Germany): 
This  funding  scheme  supports  individuals,  municipalities,  companies,  NGOs  in  improving 
energy  efficiency  of  houses  and  buildings.  From  2024,  the  measure  consists  in  a  base-
subsidy  of  30%  for  all  homeowners,  landlords,  companies,  non-profit  organisations  and 
municipalities,  which  replace  old  fossil  heating  systems.  An  additional  subsidy  of  30%  is 
granted to households with a taxable household income of a maximum of 40.000€ annually. 
Additional  subsidisation  can  be  received  (depending  on  the  situation  of  the  applicant), 
although the maximum subsidy is 70%. 

Eco-Fund (Slovenia):  

124 

 
 
 
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Name of 
the 
supporting 
measure: 

Geographic
al scope 

Category/typ
e 
of 
measure 

Rationale 

Source 

Subsidies for building renovation 

Eco  Fund  (Slovenian  Environmental  Public  Fund)  is  a  Slovenian  programme  aimed  at 
reducing  energy  poverty  among  most  vulnerable  citizens.  Incentives  for  energy  efficiency 
improvements can go up to €9,620 or €15,000 in the case the roof of the building is in bad 
condition.  Beneficiaries  can  obtain  such  incentives  for  a  number  of  energy-efficiency 
improvements,  including  the  installation  of  heat  pumps.  Incentives  come  in  the  form  of 
grants/subsidies and soft loans. 

EE, AT, FR, DE, SI 

Financing - Tax incentives 

Subsidies offset high up-front costs, making renovations more affordable. Specific support 
for energy -poor applicants ensures those least able to afford works can achieve energy use 
reductions through the renovations. 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/5149  
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/402  
https://www.anah.gouv.fr/sites/default/files/2024-01/202401_ChiffresCles2023_WEBA.pdf 
https://www.umweltbundesamt.de/sites/default/files/medien/11850/publikationen/projektion
en_2025-instrumentenpapier_korr_2.pdf 

https://zero500.ekosklad.si/kaj-je-program-zero500 

Affected 
Stakeholder 

Homeowners, Landlords, Tenants 

Expected 
impacts 

Effectiveness:  Subsidies  significantly  reduce  the  financial  burden  on  property  owners, 
making  renewable-ready  heating  systems  more  accessible.  These  programs  can 
complement low-interest loans and tax incentives, enhancing overall support and reducing 
total cost of renovations. They also complement measures designed to increase uptake such 
as  information  measures  and  mandatory  standards  by  making  implementation  based  on 
these measures more affordable. 
Benefits:  Programs  target  various  sectors,  including  residential,  commercial,  and  public 
buildings, aiming for widespread energy efficiency improvements. Depending on coverage 
the potential savings would be substantial. Improved energy efficiency can lead to reduced 
energy poverty and enhanced public health due to better living conditions. 

Estonia: It is expected that the cumulative savings are 0.183 PJ in 2030. 

Austria: It is expected that the cumulative savings are 7.9 PJ (2014-2020). 

France:  Around  1.9  million  renovations  carried  out  under  scheme  2020-2023,  of  which 
around 900,000 heating system installations. 

Germany: 72,200 ktCO2 anticipated emission savings (2022-2040) 

Cost  (social  and  public):  For  the  most  part,  subsidies  are  government  funded.  While 
subsidies  reduce  initial  expenses,  property  owners  may  still  bear  a  portion  of  the  costs; 
however,  long-term energy savings can offset these investments. Targeted subsidies can 
reduce energy poverty, delivering social benefit. 

Estonia: €460million cumulative public budget (2022-2028) 

Austria: €381million cumulative public budget (2014-2020) 

France: €2billion per year public finance 

Germany: Total subsidy budget across 2021 and 2022 of €48billion. 

125 

 
 
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Name of 
the 
supporting 
measure: 

Subsidies for building renovation 

Context: 
Scalability:  These  programs  are  designed  to  be  scalable,  with  frameworks  that  can  be 
expanded  to  accommodate  more  applicants  as  additional  funding  becomes  available. 
Scaling up requires increased financial resources and administrative capacity to manage a 
higher volume of applications. 

Speed of implementation: The speed of implementation varies by program, depending on 
administrative processes, public awareness, and the availability of contractors to perform the 
renovations. 

Typically, a call for applications for a subsidy can be put out with a fast turnaround, but it 
may take time for savings to be achieved. 

Replicability: These subsidy models can be adapted to other countries, provided there is 
political  will,  available  funding,  and  a  supportive  policy  framework.  Successful  replication 
depends on factors such as the existing condition of the building stock, economic conditions, 
and the capacity of the construction industry to meet increased demand. Subsidy measures 
are suitable  for all other  Member States,  and the value and eligibility requirements of  the 
subsidy can be set based on the national context. 

Value,  eligibility  requirements,  and  length  of  time  the  subsidy  is  available  should  all  be 
considered based on the national context. 

For  maximum  efficacy,  subsidies  should  be  open  over  a  long  period  to  maximise  public 
awareness and understanding of their financing options. 

As above 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-33 Reducing electricity prices 

Name of the 
supporting 
measure: 

Reducing electricity prices 

Time-of-Use Tariffs for heat pumps (Germany): 

Historically, Germany offered time-of-use (ToU) tariff with reduced electricity rates during 
off-peak  hours  to  promote  heat  pump  adoption.  Starting  January  1,  2025,  all  electricity 
providers are mandated to offer dynamic tariffs reflecting real-time market prices, enabling 
consumers to optimise energy usage and costs. 

Reduced VAT on electricity used in heat pumps: 

Reduced VAT on electricity applies in some MS. In combination with a reduced VAT on 
heat pumps in BE, GR, IE, IT, LU.  

Not in combination with a reduced VAT on heat pumps: CR, MT, ES. 

DE, BE, GR, IE, LU, CR, MT, ES 

Regulation & standards, Financing - Tax incentives 

Reducing electricity prices allows consumers to achieve cost savings by reducing running 
costs of their new heating system (particularly relative to the old system which likely ran on 
gas). Reduced VAT on electricity used by heat pumps (or potentially other technologies) 

Short 
description 

Geographical 
scope 

Category/type 
of measure 

Rationale 

126 

 
 
 
 
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Name of the 
supporting 
measure: 

Reducing electricity prices 

directly reduces electricity prices, therefore resulting in cost savings which reduce the time 
needed to pay off the investment. 

Time-of-use  electricity  tariffs  help  owners  of  heat  pumps  reduce  energy  costs  by  using 
cheaper off-peak electricity, often from renewables. This lowers both expenses and carbon 
emissions while helping to offset initial investment costs. Heat pump and electric heating 
system owners can maximise savings  by increasing  output  when  electricity  is cheapest, 
providing an opportunity for cost savings. These savings should reduce the payback time. 

https://www.ffe.de/en/publications/series-of-articles-dynamic-electricity-tariffs-tariff-types-
advantages-and-disadvantages-technical-requirements/  

https://www.ehpa.org/wp-content/uploads/2023/09/EHPA_VAT-on-heat-pumps-in-Europe-
report_September-2023.pdf  

Homeowners and electricity billpayers, Energy suppliers 

Effectiveness:  Dynamic  tariffs  enable  consumers  to  take  advantage  of  lower  electricity 
prices during off-peak periods, reducing the operational costs of heat pumps. Reduced VAT 
rates decrease the overall expense of electricity consumption for heating purposes. 

These  measures  encourage  consumers  to  shift  energy  usage  to  times  when  renewable 
energy supply is abundant and prices are lower, promoting grid stability and efficient energy 
use. 

Benefits: Only covers electricity-powered heating systems. 
Cost (social and public): Reduced VAT rates result in lower tax revenues, representing a 
fiscal  investment  in  promoting  renewable  energy  adoption.  While  upfront  costs  remain, 
operational  savings  from  dynamic  tariffs  and  reduced  VAT  can  improve  the  economic 
feasibility of renewable heating systems over time. 

Context:  The  effectiveness  of  dynamic  tariffs  typically  depends  on  the  widespread 
availability and adoption of smart meters, which facilitate real-time pricing and consumption 
adjustments.  Energy  management  Systems  can  also  facilitate  automatic  adjustment  of 
energy  usage.  Germany  does  not  have  significant  rollout  of  smart  meters  however  and 
used transitional  methods to implement dynamic pricing in households regardless of the 
metering set up. One such option is through the use of apps that estimate based on your 
consumption (as entered based on the reading on the analogue meter). 

Scalability:  These  measures  can  be  scaled  across  different  regions,  provided  there  is 
investment 
like  smart  meters  and  supportive  policy 
environments. 

in  necessary 

infrastructure 

The  scalability  depends  on  the  readiness  of  energy  markets  to  handle  dynamic  pricing 
models and the capacity of consumers to adapt to new pricing structures. 

Speed  of  implementation:  Implementing  dynamic  tariffs  requires  time  for  regulatory 
changes, infrastructure upgrades, and consumer education. Once implemented, reduced 
VAT  rates  can  provide  immediate  financial  relief  to  consumers  investing  in  renewable 
heating systems. 

Replicability: Other countries can adopt similar measures, tailoring them to local market 
conditions  and  regulatory  frameworks  to  promote  renewable  heating  technologies.  The 
success of replicating dynamic tariffs depends on the existing technological infrastructure 
and the ability to deploy smart metering solutions. 

Consumers need smart meters or energy management systems to participate in dynamic 
pricing, enabling real-time data exchange between the consumer and the energy supplier.  

https://ems.entega.de/faq-cockpit-app/  

127 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

Table 6-34 Energy Audits (Advice) for Households (Austria) 

Name of the 
supporting 
measure: 

Short 
description 

Energy Audits (Advice) for Households (Austria) 

The energy advice bodies of the federal states offer energy advice to households by trained 
and independent auditors.  This  measure serves as an umbrella  of  multiple regional  and 
local schemes, aiming to advise households on energy savings. 

Geographical 
scope 

AT 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Awareness, technical support and training 

The state providing free energy audits removes financial barriers to learning about possible 
energy savings and the means by which they might be achieved. As a result, information 
on how to reduce energy consumption is easier to come by. 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4378 

Property owners 

Effectiveness:  By  providing  independent,  expert  advice,  it  directly  improves  awareness 
and trust in renewable-ready heating technologies. 

Households that receive audits are more likely to invest in energy efficiency and renewable 
heating  due  to  clarity  on  costs,  savings,  and  available  subsidies.  Complements  subsidy 
programs for renewable-ready heating and works alongside mandatory energy efficiency 
measures by guiding homeowners on compliance and funding opportunities. 

Benefits:  Covers  a  wide  range  of  building  types,  from  individual  homes  to  larger  multi-
apartment  buildings,  making  it  one  of  the  most  comprehensive  awareness-raising 
measures. By driving heat pump adoption and energy efficiency improvements, it reduces 
fossil fuel dependency in heating. Energy savings of 1.75 PJ and GHG emission savings of 
65 ktCO2 were achieved between 1990 and 2015. 

Cost  (social  and  public):  Funded  regionally  and  nationally,  though  budgets  are  not 
standardized  across  all  federal  states.  Energy  audits  are  free  or  heavily  subsidized, 
ensuring broad accessibility. Consumers still bear the cost of renovations, but audits help 
optimize spending by identifying the most effective measures. 

Positive  impact  on  lower-income  households  by  ensuring  they  are  aware  of  available 
subsidies, preventing exclusion from the energy transition. 

Context: Austria’s building stock is aging, with around 58% of dwellings built before 1981. 
Scalability:  The  modular,  region-led  model  allows  it  to  expand  as  funding  increases. 
However, the measure requires ongoing training and certification of auditors. 

Speed of implementation: Can be sped up via use of digital consultations. 
A 
a 
auditors 
Limited awareness may also slow uptake. 

shortage 

trained 

prove 

could 

be 

to 

of 

bottleneck. 

Replicability:  Highly  replicable,  as  similar  advisory  services  already  exist  in  many  EU 
countries. Could be adapted to different building stock conditions. Countries with an aging 
building stock represent the best fit for this measure. In countries with a skills shortage, 
shortage of trained energy auditors may prove a particularly significant barrier. 

Details 
affecting 
delivery 

None 

128 

 
 
 
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Name of the 
supporting 
measure: 

Source 
(impacts): 

Energy Audits (Advice) for Households (Austria) 

https://www.statistik.at/en/statistics/population-and-society/housing/stock-of-dwellings 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4378 

Table 6-35 Information about heat pumps 

Name of the 
supporting 
measure: 

Information about heat pumps 

Short 
description 

Heat pumps for detached and terraced houses (Finland): 

In addition to financial support via subsidies and tax credits, information dissemination has 
been in important role in the deployment of heat pumps in Finland. The promotion of heat 
pumps is part of the continuous promotion work undertaken by Motiva in partnership with 
other  actors  in  the  field  with  the  aim  of  improving  the  energy  performance  of  small 
renewable  energy  sources. 
residential  buildings  and  promoting 

the  use  of 

Digital platform (Netherlands): 
 The digital platform (Duurzaam Bouwloket) answers questions in the field of sustainable 
construction,  renovation,  energy  savings,  energy  generation,  heating  systems,  and 
financing.  The  service  provides  guidance  on  steps  to  take  to  improve  personal 
sustainability, tailored advice on required improvements and how to find installers, loans 
and  advisors.  Videos  and  digital  assessment  tools  are  also  provided  to  facilitate  DIY 
improvements. 

Geographical 
scope 

FI, NL 

Category/type 
of measure 

Awareness, technical support and training 

Rationale 

Source 

(FI)  Information  campaigns  can  dispel  myths  about  inadequacy  of  heat  pumps  in  cold 
weather, in addition, financial support may encourage even those who remain sceptical to 
adopt the more energy efficient heating system option. 

(NL) Availability of an online web-tool to provide information on heat pumps, as well as help 
homeowners identify whether their property is suitable for a heat pump, and if so, which 
type makes it easier to bridge the gap between people who are curious about installing a 
heat pump and people actually installing them. Furthermore, by making it easy to find out 
which heat pump is suitable makes it more likely people will be satisfied with the heat pump 
they did install, which should improve heat pumps’ reputation. 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/588 
https://www.verbeterjehuis.nl/tips-en-inspiratie/een-warmtepomp-past-in-vrijwel-elk-huis  

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4010 

https://www.verbeterjehuis.nl/ 

Affected 
Stakeholder 

Homeowners 

Expected 
impacts 

Effectiveness:  Comprehensive  information  campaigns  and  platforms  increase  public 
knowledge  about  heat  pumps,  leading  to  higher  adoption  rates.  Collaboration  with 
reputable organisations and provision of impartial advice enhance consumer confidence in 
heat pump technology. 

129 

 
 
 
 
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Name of the 
supporting 
measure: 

Information about heat pumps 

Information dissemination complements subsidies and tax credits, guiding homeowners on 
how to benefit from financial support for installations of renewable heating systems. 

Benefits:  Measures  could  be  expanded  to  include  other  renewable-based/renewable-
ready  heating  technologies.  The  Digital  Platform  in  the  Netherlands  is  not  technology 
specific, covering a variety of energy efficiency and low carbon options.  

Both campaigns are nationwide. 

Cost  (social  and  public):  Both  are  entirely  publicly  funded.  Free  access  to  information 
lowers  the  barrier  for  homeowners  considering  heat  pumps,  allowing  them  to  find 
information without paying for an audit. Costs are minimal given the reach. 

Context: Given its cold climate, information measures about heat pumps (which suffer from 
misinformation about their cold-weather efficacy) are particularly important in Finland. 

Scalability:  Information  dissemination  is  easily  scalable  through  digital  platforms, 
workshops, and collaborations with local governments. 

Speed of implementation: Information campaigns can be launched relatively quickly, with 
digital  platforms  being  developed  and  updated  within  months.  However,  there  is  no 
guarantee that actions taken in light of the information will occur quickly. 

Replicability:  Similar  information  dissemination  strategies  can  be  adopted  by  other 
countries  aiming  to  promote  adoption  of  heat  pumps  and  other  renewable-based  or 
renewable-ready heating technologies. 

These  measures  will  likely  be  most  impactful  in  countries  with  high  levels  of  heating 
demand. 

Content will need to be adapted to align with local needs, based on style of communication, 
languages, and the characteristics of the building stock. 

Details 
affecting 
delivery 

Source 
(impacts): 

None 

As above. 

6.4  BUILDINGS – ENERGY DEMAND 

This subsection contains the expanded measures from the long list of measures, in table format for buildings 
– Energy demand. 

Table 6-36 Brussels - Interest-Free Loans for Energy Efficiency Investments [ECORENO] 

Name of the 
supporting 
measure: 

Short 
description 

Brussels - Interest-Free Loans for Energy Efficiency Investments [ECORENO] 

This  measure  provides  interest-free  loans  to  Brussels  households  to  finance  energy 
efficiency improvements. The programme started in in 2007 and is currently ongoing. 

The programme covers work such as insulation, ventilation, and high-performance heating 
systems. The goal is to promote energy efficiency while addressing the financial barriers 
faced  by  low-income  households.  Personalised  assistance  is  provided  to  ensure  the 
successful application of funds, and the measure complements regional goals under the 
Air-Climate-Energy Plan. 

130 

 
 
 
 
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Name of the 
supporting 
measure: 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Brussels - Interest-Free Loans for Energy Efficiency Investments [ECORENO] 

Brussels - BE 

Financing - Soft loans/loans 

Provision of interest-free loans means that long payback periods are less of an issue for 
two reasons. Firstly, less of the initial cost comes out of the household's own funds, and 
secondly, the fact that the loans are interest-free ensures that the total cost to the household 
isn't increasing over time, further increasing the time required to pay back the initial cost. 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/425 

Le crédit ECORENO | Citoyen - Bruxelles Environnement 

Homeowners, Landlords, Tenants 

Effectiveness: Improves financial feasibility, allowing homeowners to benefit from lower 
energy bills without upfront costs, as well as making the total cost known from the start. 
Benefits: Focuses only on residential properties. 
Cost (social and public): The subsidy is funded by the Brussels local authority. 
Consumers pay only the principal on the loan, no interest. 
By improving efficiency, the billpayer pays a lower energy bill. 
Involves a component addressing energy poverty. 
Context: Brussels has a mix of old and new housing, with many older buildings requiring 
retrofitting. ECORENO is particularly useful for lower-income households that may not 
otherwise afford energy renovations. 
Scalability: Could scale to include more types of properties (e.g., rental buildings) or 
integrate additional incentives to increase impact. 
Speed of implementation: Requires administrative infrastructure for loan processing and 
allocation. 
If integrated with existing energy efficiency programs, implementation could be relatively 
quick. 
Replicability: Can be replicated in urban areas with high renovation needs and low 
renovation rates due to financial concerns. 
Ideal for regions with aging housing stock and low-income homeowners who struggle with 
financing renovations. 

Loan Accessibility – Low- and middle-income households are prioritised, and eligibility is 
levels. 
based 
Loan Terms – Zero-interest or low-interest loans extend payback periods, easing financial 
strain. 
Renovation Coverage – Supports various energy-efficient upgrades, including insulation, 
heating, and solar panels. 

income 

on 

https://fonds.brussels/en/borrowing/ecoreno-credit  

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Table 6-37 On-bill-financing 

Name of the 
supporting 
measure: 

On-bill-financing 

Short 
description 

Energiesprong (NL, FR, IT, GB):  
Energiesprong  is an initiative under which  home renovations are carried  out such that  a 
home generates all the energy it requires. Prefabricated materials are used, allowing the 
renovations to be delivered at pace, with full renovations possible  in less than ten days. 
The initiative began in the Netherlands but has since expanded to other countries, including 
France, Italy, and the United Kingdom. 

Generally, these renovations are funded by the money saved on the energy bill over the 
coming 30 years, with recipients paying a monthly fee equivalent to the difference between 
their current and previous energy bills. This means that these measures are effectively zero 
cost as the costs are compensated  by the savings,  although  implementation in this  way 
would run counter to the idea that energy efficiency improvements always result in lower 
energy  bills.  As  an  additional  advantage,  delivery  of  retrofit  deals  using  standardised 
components  on  a  wide  scale  delivers  economies  of  scale,  meaning  renovations  can  be 
delivered at a lower cost than might otherwise be the case. 

Green Deal (GB):  
Businesses and individuals can access financing to carry out energy efficiency renovations 
recommended for their building by approved Green Deal Assessors. One of the possible 
options to pay for these renovations is through on-bill financing. Loans are repaid through 
charges added to the electricity bill, the loan is associated with the property to be paid by 
the person who pays the electricity bill for the property. The annual repayments on the loan 
should not exceed the savings on the energy bill. 

Geographical 
scope 

Category/type 
of measure 

FR, IT, NL, GB 

Financing - Soft loans/loans 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Recipients  may  pay  effectively  nothing  for  the  renovations  depending  on  the  repayment 
rate on the on-bill financing scheme, as payments come out of the existing energy bill, and 
typically only out of the savings achieved. Due to this, long payback periods are less of an 
issue, as the homeowner is not financially burdened. 

Tying  the  loan  to  the  property  rather  than  the  individual  also  mitigate  an  issue  of  long 
payback periods: that it may not seem worthwhile to carry out renovations in case of move 
house. 

https://energiesprong.org/ 

https://www.gov.uk/green-deal-energy-saving-measures/how-to-pay  

Homeowners, Landlords, Tenants, Energy companies 

Effectiveness: Improves financial attractiveness of renovations. 
Can  be  combined  with  grants  or  subsidies  to  further  reduce  costs  and  encourage 
comprehensive energy efficiency improvements. 

Benefits: Applicable to both residential and commercial properties, facilitating widespread 
adoption of energy efficiency measures. 

Cost  (social  and  public):  Public  Financial  Contribution  varies  by  programme;  some 
initiatives are government-funded, while others rely on private capital. 

Participants repay the financing through their utility bills, ideally offset by energy savings, 
minimising financial strain. 

132 

 
 
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Name of the 
supporting 
measure: 

On-bill-financing 

Potential  concerns  include  ensuring  equitable  access  and  preventing  disproportionate 
impacts on low-income households. 

Context: 
Scalability: Energiesprong’s prefabricated materials make it scalable on a wide scale. 
Challenge may be in finding public capital or private investors – one reason these schemes 
are not already widespread is that the loans are not an attractive investment. 

Speed of implementation: Implementation speed can vary; programs leveraging existing 
utility infrastructure and standardised renovation processes, such as Energiesprong, may 
achieve faster deployment. 

Replicability: Replicability depends on whether financing can be sourced. It also requires 
participation of energy companies, so a regulatory environment that supports this may help. 

Energy Supplier Involvement – Requires energy providers to facilitate financing and 
collect repayments, which may necessitate regulatory frameworks and agreements. 
Loan Structure & Repayment – The loan is tied to the property rather than an individual, 
meaning repayments continue with new occupants or owners. 
Cost Neutrality – Designed so that loan repayments do not exceed energy savings, 
making it financially viable. 
Pre-Assessment Requirements – Requires a home energy assessment to determine 
eligible upgrades. 
Prefabrication & Efficiency Gains (Energiesprong) – The use of standardised components 
and prefabricated materials improves cost-effectiveness and installation speed. 

Details 
affecting 
delivery 

Source 
(impacts): 

Internal Expert 

Table 6-38 Subsidies for building renovation 

Name of the 
supporting 
measure: 

Subsidies for building renovation 

Renovation of apartment buildings 2022-2030 (Estonia): 
This measure provides financial support for both the complete reconstruction of apartment 
buildings and, as an individual activity, the replacement of a heating device in the heating 
system  of  a  gas,  furnace  or  electric  apartment  building  with  a  heating  device  using 
renewable  energy  sources,  or  the  connection  of  these  apartment  buildings  to  a  district 
heating network. 

Short 
description 

Austrian Federal Government’s Renovation Initiative (Austria): 
Funds  are  made  available  for  subsidies  for  the  enhancement  of  the  thermal  quality  of 
residential buildings and the expansion of efficient heating systems, as well as for efficient 
new construction. The amount received is dependent on the achieved thermal quality and 
efficiency. 

MaPrimeRénov (France): 
MaPrimeRénov’  (MPR)  is  a  subsidy  scheme  to  help  households  with  energy  efficient 
renovation of their dwelling. The scheme is accessible to all households, but energy-poor 
applicants obtain a higher level of support. Currently there are two versions of the scheme: 
-  MPR  "Decarbonisation":  focusing  on  moving  away  from  fossil  fuel  (e.g.  heat  pump 
installation) 

133 

 
 
 
 
 
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Name of the 
supporting 
measure: 

Subsidies for building renovation 

- MPR "Accompanied": focusing on major renovation works with the mandatory assistance 
of an independent counsellor. 

Federal  subsidy  for  efficient  buildings  (Bundesförderung  für  effiziente  Gebäude 
(BEG)) (Germany): 

This funding scheme supports individuals, municipalities, companies, NGOs in improving 
energy  efficiency  of  houses  and  buildings.  From  2024,  the  measure  consists  in  a  base-
subsidy  of  30%  for  all  homeowners,  landlords,  companies,  non-profit  organisations  and 
municipalities, which replace old fossil heating systems. An additional subsidy of 30% is 
granted to households with a taxable household income of a maximum of 40.000€ annually. 
Additional  subsidisation  can  be  received  (depending  on  the  situation  of  the  applicant), 
although the maximum subsidy is 70%. 

Eco-Fund (Slovenia):  

Eco  Fund  (Slovenian  Environmental  Public  Fund)  is  a  Slovenian  programme  aimed  at 
reducing energy poverty among most vulnerable citizens. Incentives for energy efficiency 
improvements can go up to €9,620 or €15,000 in the case the roof of the building is in bad 
condition.  Beneficiaries  can  obtain  such  incentives  for  a  number  of  energy-efficiency 
improvements,  including  the  installation  of  heat  pumps.  Incentives  come  in  the  form  of 
grants/subsidies and soft loans. 

EE, AT, FR, DE, SI 

Financing - grants/subsidies, Financing - Soft loans/loans 

Subsidies offset high up-front costs, making renovations more affordable. Specific support 
for energy-poor applicants ensures those least able to afford works can achieve energy use 
reductions through the renovations. 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/5149   
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/402  
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4203  
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/3992  

https://zero500.ekosklad.si/kaj-je-program-zero500 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Homeowners, Landlords, Tenants 

Expected 
impacts 

Effectiveness:  Subsidies  significantly  reduce  the  financial  burden  on  property  owners, 
making  renewable-ready  heating  systems  more  accessible.  These  programs  can 
complement low-interest loans and tax incentives, enhancing overall support and reducing 
total  cost  of  renovations.  They  also  complement  measures  designed  to  increase  uptake 
such as information measures and mandatory standards by making implementation based 
on these measures more affordable. 
Benefits:  Programs  target  various  sectors,  including  residential,  commercial,  and  public 
buildings, aiming for widespread energy efficiency improvements. Depending on coverage 
the potential savings would be substantial. Improved energy efficiency can lead to reduced 
energy poverty and enhanced public health due to better living conditions. 

Estonia: It is expected that the cumulative savings are 0.183 PJ in 2030. 

134 

 
 
 
 
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Name of the 
supporting 
measure: 

Subsidies for building renovation 

Austria: It is expected that the cumulative savings are 7.9 PJ (2014-2020). 

France:  Around  1.9  million  renovations  carried  out  under  scheme  2020-2023,  of  which 
around 900,000 heating system installations. 

Germany: 72,200 ktCO2 anticipated emission savings (2022-2040) 

Cost  (social  and  public):  For  the  most  part,  subsidies  are  government  funded.  While 
subsidies  reduce  initial  expenses,  property  owners  may  still  bear  a  portion  of  the  costs; 
however, long-term energy savings can offset these investments. Targeted subsidies can 
reduce energy poverty, delivering social benefit. 

Estonia: €460million cumulative public budget (2022-2028) 

Austria: €381million cumulative public budget (2014-2020) 

France: €2billion per year public finance 

Germany: Total subsidy budget across 2021 and 2022 of €48billion. 

Context: 
Scalability:  These  programs  are  designed  to  be  scalable,  with  frameworks  that  can  be 
expanded  to  accommodate  more  applicants  as  additional  funding  becomes  available. 
Scaling up requires increased financial resources and administrative capacity to manage a 
higher volume of applications. 

Speed of implementation: The speed of implementation varies by program, depending 
on  administrative  processes,  public  awareness,  and  the  availability  of  contractors  to 
perform the renovations. 

Typically, a call for applications for a subsidy can be put out with a fast turnaround, but it 
may take time for savings to be achieved. 

Replicability: These subsidy models can be adapted to other countries, provided there is 
political will, available funding, and a supportive policy framework. Successful replication 
depends on factors such as the existing condition of the building stock, economic 
conditions, and the capacity of the construction industry to meet increased demand. 
Subsidy measures are suitable for all other Member States, and the value and eligibility 
requirements of the subsidy can be set based on the national context. 

Value,  eligibility  requirements,  and  length  of  time  the  subsidy  is  available  should  all  be 
considered based on the national context. 

For  maximum  efficacy,  subsidies  should  be  open  over  a  long  period  to  maximise  public 
awareness and understanding of their financing options. 

As above. 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-39 Tax deductions for energy efficiency renovations 

Name of the 
supporting 
measure: 

Short 
description 

Tax deductions for energy efficiency renovations 

Reduced  VAT  for  energy  renovations  in  the  residential  sector  (Cyprus):  Energy 
efficiency renovations of private residences are subject to a VAT rate of 5% rather than the 
usual 19% VAT rate. 

Thermo-modernisation tax relief (Poland):  

The full value of energy efficiency renovations (up to PLN 53,000), including related costs 
such as energy audits, is deductible from taxable income for the purposes of calculating 
income tax in single-family residential buildings. 

135 

 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

Name of the 
supporting 
measure: 

Tax deductions for energy efficiency renovations 

Reduced VAT rate on labour costs for insulation and glass and for maintenance and 
renovation of residential buildings (Verlaagd BTW tarief) (Netherlands):  
The labour component of the cost of energy efficiency renovations on residential buildings 
over 2 years old has a VAT rate reduction from 19% to 6%. 

Tax Credits for Small Scale Landlords to Retrofit Rental Houses (Ireland):  

Small-scale landlord can deduct up to €10k from their rental income for the purposes of 
determining tax if they retrofit their property while a tenant remains in the property. 

Household tax credit (Finland):  
Homeowners are eligible for a tax credit covering labour costs associated with replacing, 
upgrading,  and  repairing  heating  systems  in  small  residential  houses,  as  well  as  other 
energy  efficiency  improvements.  The  rate  of  the  deduction  varies  by  recipient  and  the 
specific work done. 

Tax incentives for energy-efficient home renovation (Luxembourg):  

To  encourage  energy-efficient  renovations,  rental  properties  that  qualify  for  financial  aid 
under the "Klimabonus Wunnen" program can benefit from a 6% depreciation rate for 10 
years on sustainable energy upgrades. Additionally, all renovation work—including but not 
limited to energy improvements—can take advantage of a special reduced VAT rate of 3%, 
up to a certain limit. 

CY, PL, NL, IE, FI, LU 

Financing - Tax incentives 

Exemption  from  VAT,  and/or  relief  on  other  tax  via  a  tax  credit  for  energy  efficiency 
renovations  offsets  the  high  cost,  reducing  the  financial  burden  on  households  and 
businesses. 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/466 

https://www.podatki.gov.pl/pit/ulgi-odliczenia-i-zwolnienia/ulga-termomodernizacyjna/  
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/842 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Minister  Donohoe  announces  a  new  tax  incentive  to  encourage  small-scale  landlords  to 
undertake retrofitting works 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/582 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4777 

Affected 
Stakeholder 

Homeowners, Landlords 

Expected 
impacts 

Effectiveness: Tax deductions lower the effective cost of energy efficiency renovations, 
making  them  more  financially  accessible  to  property  owners.  Combining  tax  deductions 
with  subsidies  or  low-interest  loans  can  further  alleviate  financial  burdens.  Using 
informational measures to inform the public of incentives available can increase uptake. 

Benefits: Measures cover a wide range of energy efficiency improvements. 
Thermo-modernisation tax relief (Poland): 24.8 PJ by 2030 

136 

 
 
 
 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

Name of the 
supporting 
measure: 

Tax deductions for energy efficiency renovations 

Tax incentives for energy-efficient home renovation (Luxembourg): 0.7 PJ by 2030. 

Cost  (social  and  public):  Consumers  must  still  cover  renovation  costs  upfront  before 
claiming deductions, which can limit access for lower-income households. In addition, tax-
based  incentives  primarily  benefit  those  with  taxable  income,  potentially  excluding  non-
taxpaying low-income groups. 

Context: 
Scalability:  Tax  deduction  schemes  can  be  implemented  on  a  national  scale,  with 
adjustments  to  reflect  different  income  levels,  building  stock  characteristics,  and 
government budgets. As tax deductions are processed via existing tax systems, they do 
not require large-scale administrative infrastructure. 

Speed of  implementation:  Tax deductions can  be  introduced within one  fiscal  year via 
adjustments to tax codes and require minimal infrastructure. 

Replicability: Tax incentives are a widely used mechanism in various sectors and can be 
adapted to local fiscal policies. 

Countries with an aging building stock and a high percentage of homeownership will benefit 
the most from these measures. 

The  level  of  deductions  available,  which  renovations  are  applicable,  how  to  apply,  and 
whether the deductions affect VAT or income tax will need to be considered. 

As above. 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-40 Energy-Linked Rental Price Regulation 

Name of 
the 
supporting 
measure: 

Energy-Linked Rental Price Regulation 

Home valuation system (WWS) (Netherlands): 

The WWS is a system for determining the maximum rental price for a rental property. The 
more  points  a  home  is  worth,  the  higher  the  rent  may  be.  The  Netherlands  updated  this 
system to  award additional points for energy efficiency of properties, allowing landlords to 
increase rent on efficient properties, which is offset for the tenant by the reduced energy bills. 

Energy Performance Fees (Netherlands): 
Under the Energy Performance Fee Bill (EPV), Landlords who renovate their properties so 
they  are  zero-energy  (or  nearly),  or  "zero-on-the-meter"  homes  can  request  an  energy 
performance fee from their tenants to recoup the substantial investments made in the rental 
property. 

Short 
description 

Civil Law 559 (Germany): 

Property  owners  who  carry  out  energy  efficiency  renovations  on  a  rented  property  can 
increase  the  annual  rent  by  8%  of  the  renovation  costs.  However,  the  monthly  basic  rent 
cannot  rise  by  more  than  €3  per  m²,  or  €2  per  m²  if  the  basic  rent  is  below  €7  per  m². 

Rental Price Indexation Prohibition (Belgium): 

This policy introduced a temporary halt to the indexation of rental price, which is the periodic 
adjustment of the rent to reflect changes in the cost of living. Under this regulation, landlords 
renting a property with an energy performance certificate (EPB) equal to E, F, or G could no 

137 

 
 
 
 
 
 
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Name of 
the 
supporting 
measure: 

Geographic
al scope 

Category/ty
pe 
measure 

of 

Rationale 

Source 

Energy-Linked Rental Price Regulation 

longer  use  indexation  to  increase  the  rent.  After  November  2023,  indexation  for  rental 
properties with low EPB is allowed, but using an adapted formula. 

NL, DE, BE 

Regulation & standards 

Application of these measures addresses the split incentive issue on the side of the landlords. 
By limiting the rent that can be charged based on energy efficiency, landlords are forced to 
carry out renovations on inefficient properties in order to charge higher rents, while (typically) 
tenants living in these properties will at least not need to pay both high energy bills and high 
rent.  The  energy  performance  fee  likewise  provides  an  incentive  to  renovate,  allowing 
collection of an additional fee for zero-energy homes. Tenants are not negatively impacted 
as they do not need to pay energy bills in these homes. 

Germany’s civil law 559 addresses the split incentive issue by a similar mechanism, as does 
Belgium’s  Rental  price  indexation  prohibition  measure.  The  former  allows  a  fixed  rent 
increase based on the level of energy efficiency improvements implemented and the latter 
limits rent increases on properties that do not meet energy performance requirements. 

Netherlands  NECP  2023  (Annex  3)  (https://commission.europa.eu/system/files/2023-
07/Annex%203-%20Netherlands%20Draft%20update%20NECP%202021-2030_0.pdf)  
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4962  
Energy Performance Fee (EPV) | RVO.nl  

https://link.springer.com/article/10.1007/s12053-023-10102-
y#:~:text=Furthermore%2C%20according%20to%20Germany's%20Civil,than%203%20%E
2%82%AC/m2/ 

https://be.brussels/en/housing/rental/lease-contracts/rental-price-indexation   

Affected 
Stakeholder 

Landlords, Tenants 

Expected 
impacts 

Effectiveness: Tenants are encouraged to seek energy-efficient homes, fostering a market 
preference that pressures landlords to upgrade properties. Combining rental regulations with 
subsidies or tax incentives can further reduce the financial burden on landlords. 

Benefits: Measures cover the whole of the rental market. 
Cost (social and public): These regulatory measures primarily involve policy changes rather 
than  direct  public  expenditure.  Landlords  bear  the  upfront  costs  of  renovations  but  can 
recuperate  investments  through  regulated  rent  increases.  Tenants  may  experience  higher 
rents; however, these are often offset by lower energy bills, leading to potential net savings. 
Ensuring that rent increases do not disproportionately affect low-income tenants is crucial. 
Measures such as caps on rent hikes or targeted subsidies may be necessary. 

Context: The Netherlands has a significant proportion of housing as rental housing, making 
rental  regulations  more  impactful.  Belgium’s  rental  regulations  differ  by  region;  in  other 
member  states  replicating  a  measure  like  this  may  require  broader  approval  and 
harmonisation between local and state law. 

Scalability: It might not be possible to scale these measures beyond the current scope given 
they are specifically tailored to the rental market. 

Speed of implementation: Policy development and stakeholder consultations could take a 
long time, particularly as this may prove politically contentious. However, once developed, 

138 

 
 
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Name of 
the 
supporting 
measure: 

Details 
affecting 
delivery 

Energy-Linked Rental Price Regulation 

the measure would be able to have immediate effect, as landlords may be keen to protect 
their income. 

Replicability: Measures would be replicable across other Member States but could prove 
contentious and may require extensive stakeholder consultations. 

Measures likely to have the most impact in Member States with a large share of renters. 

Regulatory  Framework:  Establishes  guidelines  on  permissible  rent  adjustments  linked  to 
energy efficiency improvements, ensuring transparency and fairness. 

Energy  Performance  Assessment:  Requires  standardised  evaluations  to  determine  the 
property's energy efficiency before and after renovations. 

Tenant-Landlord Agreements: Mandate clear communication and agreements outlining the 
scope of renovations, expected benefits, and corresponding rent adjustments. 

Source 
(impacts): 

Internal expert. 

Table 6-41 Minimum energy performance requirements for new and existing buildings 

Name of the 
supporting 
measure: 

Short 
description 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Minimum energy performance requirements for new and existing buildings 

A large variety of standards are in place across Europe, the following are examples of such. 

Minimum energy performance requirements for new and existing buildings (Cyprus): 

All  new  and  existing  buildings,  with  some  exceptions  must  satisfy  minimum  energy 
performance requirements. 

Rules on efficient use of energy in buildings 2022 (Slovenia): 
This  Regulation  specifies  the  technical  requirements  for  the  construction  of  almost  zero 
energy buildings, which must be met in order to achieve the energy efficiency of buildings 
in  the  field  of  properties  of  the  building's  thermal  envelope,  technical  building  systems 
(TSS), heating, cooling, air conditioning, ventilation or their combination, preparation of hot 
sanitary water (TSV), lighting, automation and control of TSS, provision of own renewable 
energy  sources  (RES)  including  on-site  electricity  production,  provision  of  e-mobility 
support for the needs of building users. 

CY, SI 

Regulation & standards 

Mandatory standards overcome the lack of incentive by ensuring that there is not an option 
available to build energy inefficient properties, or for the least efficient properties to remain 
as they are. 

Cyprus - Final updated NECP 2021-2030 (submitted in 2024) 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/960 

139 

 
 
 
 
 
 
 
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Name of the 
supporting 
measure: 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Minimum energy performance requirements for new and existing buildings 

Property owners, Construction industry 

Effectiveness: By setting legal requirements, property owners are compelled to invest in 
energy efficiency, overcoming the reluctance due to split incentives. Establishing minimum 
standards  shifts  the  entire  market  toward  higher  energy  performance,  benefiting  all 
occupants.  Combining  mandatory  requirements  with  financial  incentives  such  as  tax 
deductions or subsidies make carrying out mandated improvements more financially viable 
for property owners. 

Benefits: Cyprus’ mandatory standards apply to all buildings (with some exceptions). 
Cost (social and public): Public costs involve only those associated with developing the 
regulation. Property owners may face increased expenses in order to carry out works, which 
may be passed on to tenants through rent increases. These rent increases should be offset 
by lower energy bills. Steps need to be taken to ensure the mandatory upgrades do not 
disproportionately impact low-income tenants to avid social costs. 

Context: 
Scalability:  Minimum  energy  performance  requirements  can  be  implemented  nationally 
and adapted to regional contexts. Property owners may need support to manage the costs 
of necessary upgrades. 

Speed of implementation: Developing and implementing regulations, along with allowing 
time for stakeholders to comply, can take a long time. Furthermore, property owners may 
resist due to the cost implications. 

Replicability:  Regulatory  measures  like  these  can  be  adapted  to  various  national  and 
regional  contexts,  considering  local  building  characteristics  and  climates.  However, 
effective enforcement requires well-developed regulatory frameworks and resources 

Countries  with  high  proportion  of  rental  properties  are  likely  to  have  the  greatest  impact 
from these measures. 

Many Member States already have standards in place. Savings would require additional or 
more stringent standards to be put in place, as was the case in Slovenia’s measure. 

Internal expert. 

Table 6-42 Tax deductions for renewable heating systems 

Name of the 
supporting 
measure: 

Short 
description 

Energy Audits (Advice) for Households (Austria) 

The energy advice bodies of the federal states offer energy advice to households by trained 
and independent auditors.  This  measure serves as an umbrella  of  multiple regional  and 
local schemes, aiming to advise households on energy savings. 

Geographical 
scope 

AT 

Category/type 
of measure 

Rationale 

Awareness, technical support and training 

The state providing free energy audits removes financial barriers to learning about possible 
energy savings and the means by which they might be achieved. 

140 

 
 
 
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Name of the 
supporting 
measure: 

Source 

Affected 
Stakeholder 

Energy Audits (Advice) for Households (Austria) 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4378 

Property owners  

Expected 
impacts 

Effectiveness: By providing independent, expert advice, it directly improves awareness of 
savings achievable through energy efficiency renovations. Households that receive audits 
are more likely to invest in energy efficiency due to clarity on costs, savings, and available 
subsidies.  Complements  subsidy  programs  for  energy  efficiency  renovations  and  works 
alongside mandatory energy efficiency measures by guiding homeowners on compliance 
and funding opportunities. 

Benefits:  Covers  a  wide  range  of  building  types,  from  individual  homes  to  larger  multi-
apartment  buildings,  making  it  one  of  the  most  comprehensive  awareness-raising 
measures. By driving energy efficiency improvements, it reduces fossil fuel dependency. 
Energy savings of 1.75 PJ and GHG emission savings of 65 ktCO2 were achieved between 
1990 and 2015. 

Cost  (social  and  public):  Funded  regionally  and  nationally,  though  budgets  are  not 
standardized  across  all  federal  states.  Energy  audits  are  free  or  heavily  subsidized, 
ensuring broad accessibility. Consumers still bear the cost of renovations, but audits help 
optimize  spending  by  identifying  the  most  effective  measures.  Positive  impact  on  lower-
income households by ensuring they are aware of available subsidies, preventing exclusion 
from the energy transition. 

Context: Austria’s building stock is aging, with around 58% of dwellings built before 1981. 
Scalability:  The  modular,  region-led  model  allows  it  to  expand  as  funding  increases. 
However, the measure requires ongoing training and certification of auditors. 

Speed of implementation: Can be sped up via use of digital consultations. A shortage of 
trained auditors could prove to be a bottleneck. Limited awareness may also slow uptake. 

Replicability:  Highly  replicable,  as  similar  advisory  services  already  exist  in  many  EU 
countries. Could be adapted to different building stock conditions. Countries with an aging 
building stock represent the best fit for this measure. In countries with a skills shortage, 
shortage of trained energy auditors may prove a particularly significant barrier. 

Details 
affecting 
delivery 

None 

Source 
(impacts): 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4378 

Table 6-43 Energy efficiency web tool 

Name of the 
supporting 
measure: 

Short 
description 

Energy efficiency web tool 

Federal government - EnergyWatchers Web Tool (Belgium): 
This  measure  provides  a  web  tool  that  can  be  used  by  households  to  calculate  CO2 
emissions and energy costs for appliances, buildings, and cars. It provides tailored advice 
for  replacement,  better  use,  or  optimal  new  product  selection,  factoring  in  subsidies, 
personal behaviour, and regional specifics. 

141 

 
 
 
 
 
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Name of the 
supporting 
measure: 

Energy efficiency web tool 

IDEA e-Learning platform (Spain): 
The IDAE e-Learning platform provides online courses (taking 1-6 hours to complete) on 
energy  savings  at  home,  in  the  workplace  and  while  driving.  Multimedia  resources  are 
provided to give an interactive learning experience. Free guides and documentation can 
also  be  downloaded  for  each  course.  The  courses  are  aimed  at  reducing  energy 
consumption through behavioural change, as well as providing information required to carry 
out renovations. 

Digital platform (Netherlands): 
The digital platform (Duurzaam Bouwloket) answers questions in the field of sustainable 
construction,  renovation,  energy  savings,  energy  generation,  heating  systems,  and 
financing.  The  service  provides  guidance  on  steps  to  take  to  improve  personal 
sustainability, tailored advice on required improvements and how to find installers, loans 
and  advisors.  Videos  and  digital  assessment  tools  are  also  provided  to  facilitate  DIY 
improvements. 

Geographical 
scope 

Category/type 
of measure 

Rationale 

BE, ES, NL 

Awareness, technical support and training 

Tailored advice on a household's specific energy use allows targeted reductions in the most 
excessive areas of consumption. Generalised information and tools enable savings among 
a  wide  range  of  people  with  the  knowledge  to  reduce  personal  energy  use,  obtain  or 
perform renovations. 

Dakisolatie - EnergyWatchers 

Home | Plataforma para el ciudadano  
https://www.verbeterjehuis.nl/ 

Source 

https://www.valuecoders.com/blog/technology-and-apps/a-complete-timeline-guide-for-
web-app-development/ 

Affected 
Stakeholder 

Consumers 

Expected 
impacts 

Effectiveness: These platforms provide accessible information, helping users understand 
the benefits and potential savings from energy efficiency renovations. By offering tailored 
advice and educational resources, users are more likely to adopt energy-efficient practices 
and consider renovations. 

These tools should be combined with subsidies or tax incentives, to guide users on how to 
maximise financial benefits from energy efficiency measures. 

Benefits: Measures have the potential to reach the whole residential sector. 
Cost  (social  and  public):  Initial  funding  is  required  to  develop  these  platforms,  with 
ongoing costs for updates and maintenance. Access to these platforms is typically free for 
users,  reducing  financial  barriers  to  information.  Individuals  without  access  to  digital 
internet-connected devices will not be able to access these platforms. 

Context: 
Scalability: These digital platforms can be expanded to include more features, languages, 
and regions, increasing their reach and impact. 

Maintaining user interest and ensuring the information leads to actionable outcomes can 
be challenging. 

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Name of the 
supporting 
measure: 

Energy efficiency web tool 

Speed  of  implementation:  Developing  a  comprehensive  web  tool  requires  time  for 
planning, development, testing, and deployment. The whole process can take 2-12 months 
or even longer, depending on complexity and available content. 

Replicability:  The  concept  of  energy  efficiency  web  tools  is  adaptable  and  can  be 
implemented 
regions. 
Demographics with low digital literacy may need additional support to make the most of the 
tool. 

countries 

various 

and 

in 

Details 
affecting 
delivery 

Source 
(impacts): 

None 

As above. 

Table 6-44 Energy efficiency information programmes 

Name of the 
supporting 
measure: 

Energy efficiency information programmes 

Information Programme "Let's Live Warmer" (Latvia) 

In Latvia the programme motivates for building energy efficient renovation. Wide scope of 
methods is applied to reach and to inform and consult societies of the flats’ owners (housing 
associations) regarding conditions and benefits of energy efficiency increase and the best 
practices of it, available financial support. Programme consults also on the good practice 
of maintaining the apartment building after renovation. 

Information  campaign  on  raising  awareness  about  energy  efficiency  (Czech 
Republic) 

The measure, managed by the Ministry of Industry and Trade, aims to raise awareness of 
energy efficiency with a view to changing the behaviour of energy consumers and reducing 
energy 
consumption. 
The  national  information  campaign  will  be  multilevel  in  order  to  maximise  the  impact  on 
energy  consumers.  Information  activities  will  be  realised  through  TV  spots,  information 
activities  in  print  media,  information  activities  on  social  networks  and,  last  but  not  least, 
through an Internet platform. 

Energy advice network for citizens – ENSVET (Slovenia) 

Short 
description 

Energy advice network for citizens -ENSVET is the main programme for advising (informing 
and  assisting  the  citizens  (local  residents)  in  the  implementation  of  energy  efficiency 
measures  in  households  and  the  expansion  of  consulting  for  companies  in  2027. 
The consulting and assistance regarding the energy efficiency measures is very important 
and  free  of  charge  for  all  owners  of  houses,  who  want  to  invest  in  energy  efficiency 
measures. 
cases:  
selection of heating systems and heating devices, exchange of the old heating device and 
heating, decrease of fuel consumption, selection of suitable fuels, insulation of buildings, 
selection  of  suitable  windows,  sanitation  of  buildings  with  the  purpose  to  reduce  energy 
consumption, using energy efficient  households’ appliances, in  all other questions about 
the energy use in households. 

consulting 

following 

advise 

offices 

The 

the 

in 

ADEME energy-saving awareness campaign (France) 

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Name of the 
supporting 
measure: 

Energy efficiency information programmes 

The  objective  of  this  operation  carried  out  by  ADEME  and  supported  by  Ministries  is  to 
sensibilize  and  mobilise  the  public  audience  about  energy  management  and  climate 
change in order to incite them to act daily to make energy savings. The logic has been to 
find partners in order to constitute networks in capacity to diffuse efficiently messages and 
information towards different types of targeted public. A campaign was released across all 
media  platforms  with  a  slogan  and  a  "club  of  partners"  was  created  to  improve  public 
awareness of climate change by communication, training, exhibitions etc. 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

LV, CZ, SI, FR 

Awareness, technical support and training 

Providing  information  to  flat  owners  makes  them  aware  both  of  the  inefficiency  of  the 
property  and  of  how  to  address  it,  removing  a  barrier  for  those  otherwise  unlikely  to  be 
aware of how to achieve savings such as the elderly. 

Let's live warmer | Ekonomikas ministrija 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4375  
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/950  
https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/604 

Affected 
Stakeholder 

Homeowners, Housing associations 

Effectiveness: Programs like ENSVET offer personalized advice, making energy efficiency 
measures more accessible to older homeowners. 

Multilevel  campaigns,  such  as  the  one  in  the  Czech  Republic,  ensure  that  information 
reaches a broad audience, including the elderly. 

Combining  information  programs  with  subsidies  or  tax  deductions  can  motivate  older 
homeowners to undertake renovations. 

Benefits: These programs aim to reach a wide audience, including older homeowners, to 
promote energy efficiency.  

Information campaign on raising awareness about energy efficiency (Czech Republic): 

30PJ cumulative energy savings 2021-2030 

Energy advice network for citizens -ENSVET (Slovenia): 

Expected 
impacts 

2.4 PJ cumulative energy savings 2010-2021 

82 kt CO2 cumulative emission savings 2010-2021 

Cost (social and public): Government agencies typically fund these information programs. 
Information  programs  are  usually  free  for  participants.  Ensuring  that  information  is 
accessible to all demographics, including those with limited digital literacy, is crucial. 

Context: 
Scalability: Information programs can be scaled nationally or regionally. Ensuring active 
participation from older homeowners may require targeted strategies. 

Speed of implementation: Information campaigns can be implemented relatively quickly, 
although  it  may  take  longer  for  actual  savings  to  be  realised  from  renovations.  Energy 
demand reductions from behavioural change may be able to be achieved more quickly. 

Replicability:  Similar  programs  can  be  implemented  in  other  countries.  The  greatest 
impact can be achieved in countries with a greater proportion of elderly homeowners. 

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Name of the 
supporting 
measure: 

Details 
affecting 
delivery 

Source 
(impacts): 

Energy efficiency information programmes 

Campaign needs to be delivered via media likely to actually reach and engage the elderly 
population. 

As above. 

Table 6-45 State guaranteed loans for energy efficiency measures 

Name of the 
supporting 
measure: 

Short 
description 

State guaranteed loans for energy efficiency measures 

A state guarantee scheme that enables apartment owners in multi-apartment buildings who 
do not have sufficient funds to finance investments for implementation of energy efficiency 
measures to take out a loan at a commercial bank secured with a state guarantee. 

Geographical 
scope 

SI 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Financing - Soft loans/loans 

State guarantees allow those who would otherwise struggle to obtain loans, such as the 
elderly, to secure funds for energy efficiency measures, removing one of the barriers for 
this group. 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/964 

Owners of flats in multi-apartment buildings. 

Effectiveness: State guarantees reduce the perceived risk for lenders, making loans more 
accessible to older homeowners who might otherwise be ineligible. With reduced financial 
barriers, more elderly homeowners are likely to undertake energy efficiency renovations. 
Coupling financial support with targeted information campaigns can enhance awareness 
and uptake among older populations. Providing guidance on selecting appropriate energy 
efficiency measures ensures effective use of funds. 

Benefits:  Focuses  on  apartment  owners  in  multi-apartment  buildings,  addressing  a 
specific, and limited, segment of the housing sector. 

Cost (social and public): Governments allocate funds to back loans, covering potential 
defaults and encouraging lender participation. State guarantees often lead to lower interest 
rates,  decreasing  the  financial  burden  on  homeowners.  Ensuring  that  programs  are 
accessible  to  all  eligible  homeowners,  regardless  of  income  or  credit  history,  promotes 
social equity. 

Context: A significant portion (23%) of Slovenia’s housing stock comprises multi-apartment 
buildings, many requiring energy efficiency upgrades. Slovenia has an aging building stock, 
with the majority of buildings constructed prior to 1980. 

Scalability: The scheme could be scaled up to include other types of dwelling and reach 
more stakeholders. 

Speed  of  implementation:  Establishing  guarantee  schemes  involves  coordination 
between government agencies and financial institutions, which could slow implementation. 

Replicability: The concept of state-guaranteed loans for energy efficiency is adaptable to 
various  countries  and  regions.  Countries  with  a  significant  number  of  multi-apartment 

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Name of the 
supporting 
measure: 

Details 
affecting 
delivery 

Source 
(impacts): 

State guaranteed loans for energy efficiency measures 

buildings and aging populations would benefit most from a programme like this example, 
however if scaled up to include other dwelling types, this would be broadly replicable. 

None 

https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/07/housing-market-
challenges-and-policy-options-in-slovenia_54a982ce/fab74d9f-en.pdf 

https://energy.ec.europa.eu/system/files/2018-11/slovenia_en_version_1.pdf 

6.5  INDUSTRY – WILLINGNESS 

This subsection contains the expanded measures from the long list of measures, in table format for Industry – 
Willingness. 

Table 6-46 Voluntary Energy Efficiency Agreements 

Name of the 
supporting 
measure: 

Voluntary Energy Efficiency Agreements 

Short 
description 

BE  -  From  2003  to  2020  Flanders  and  Wallonia  have  allowed  industrial  companies  to 
participate in voluntary agreements for improving energy efficiency. In Flanders, energy-
intensive industries (annual energy demand > 0.1 PJ) and requires companies to implement 
an  energy  management  system  or  an  ISO  50001  certification.  SMEs  in  particular  have 
access to support for energy audits and subsidies for energy efficiency projects. 

In  Wallonia, voluntary agreements require energy efficiency and GHG reduction  targets, 
annual  progress  monitoring,  and  carbon  footprint  analysis.  Industry  federations  set 
collective  targets  and  develop  low-carbon  roadmaps.  The  second  round  of  agreements 
covers 228 companies and 90% of industrial energy demand and has been extended with 
new targets through 2023. 

FI - Finland's Voluntary Energy Efficiency Agreements are a collaborative initiative between 
the government and various sectors, aiming to enhance energy efficiency without resorting 
to  legislation. These agreements serve as a  flexible  alternative to  mandatory measures, 
allowing companies and municipalities to implement energy-saving actions tailored to their 
specific needs and timelines. The Finnish government offers subsidies for energy audits 
and investments in energy-efficient technologies, incentivising participation and facilitating 
the adoption of innovative solutions. 

Geographical 
scope 

BE, FI 

Category/type 
of measure 

Rationale 

Voluntary agreements, Financing - grants/subsidies 

The lack of willingness could be overcome with incentives and disincentives. With these 
agreements,  incentives  were  the  pull  factor  for  companies  while  co-definition  of  goals 
ensured ownership and penalties guaranteed compliance. 

Source 

BE - The EPAs | EBO Flanders 
FI - https://energiatehokkuussopimukset2017-2025.fi/en/join-the-agreement/ 

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Name of the 
supporting 
measure: 

Affected 
Stakeholder 

Voluntary Energy Efficiency Agreements 

SMEs, Large companies 

Effectiveness: Voluntary agreements incentivise companies to decarbonise by supporting 
energy auditing, energy management implementation systems, and official commitments. 
These agreements often interact with regional subsidy schemes (such as the Easy Green 
programme in Wallonia). 
Benefits:  (BE)  Total  cumulative  savings  from  voluntary  agreements  in  Flanders  are 
expected to be 162.36 PJ. (FI) Between 2008 and 2016 annual energy consumption was 
reduced by 16 TWh (68 percent of energy savings was realised in the industrial sector). 
Carbon dioxide emissions were reduced by 4.6 Mt per year. 

Cost  (social  and  public):  (FI)  during  the  2008-2016  window,  the  measure  costed  EUR 
105  million,  of  which  EUR  13  million  for  energy  audits  and  EUR  92  million  for  energy 
efficiency improvements. Participants invested over EUR 1.3 billion in the same period. Of 
these, 41% were invested in the industrial sector. 

Context:  
Scalability: The policies can be scaled to include less energy-intensive industries, or other 
sectors not yet included  

Speed  of  implementation:  Such  policies  would  require  some  degree  of  coordination 
between governments and industries. The speed of implementation can also be affected 
by the need to create buy in and the readiness of small industry to participate. 

Replicability:  These  measures  can  be  replicated  in  other  countries,  with  effectiveness 
depending  on  the  number  of  public  subsidies  that  could  be  provided,  alongside  the 
willingness of the private sector to participate in such agreements. 

The effectiveness of voluntary energy efficiency agreements can be significantly affected 
by the willingness of the businesses, municipalities and other actors. The Finnish example 
is not limited to specific sectors. Other countries may decide to limit voluntary agreements 
to specific sectors, depending on decarbonisation priorities and readiness of private actors. 

The EPAs | EBO Flanders 

https://energyefficiencyagreements2008-2016.fi/mita-saavutimme-vuosina-2008-2016 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-47 Business Pool 

Name of the 
supporting 
measure: 

Business Pool 

Business Pool is a programme that supports energy and CO2 saving projects up to 50%, 
increasing  the  profitability  of  low-carbon  technologies  adoption.  Private  companies  can 
receive grants for projects that save energy or CO2, such as replacement of gas boilers, 
optimisation of process plants, internal utilisation of surplus heat. The financial support is 
in the form of grants, whose size is based on: 
• 
kWh saved 
•  CO2 saved 
•  Company size: 

Short 
description 

o  Up to 50% for small businesses 
o  Up to 40% for medium businesses 
o  Up to 30% for large businesses 

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Name of the 
supporting 
measure: 

Business Pool 

Geographical 
scope 

DK 

Category/type 
of measure 

Rationale 

Financing - grants/subsidies 

By receiving grants, companies can finance up to 50% of their green investment without 
having to reimburse the funds. This lowers the effective cost reducing the economic burden 
on firms. 

Source 

https://sparenergi.dk/erhvervspuljen 

Affected 
Stakeholder 

SMEs, Large companies 

Effectiveness:  The  measure  effectively  reduces  costs 
that  undergo 
decarbonisation  activities  through  the  implementation  of  low-carbon  technologies.  The 
measure may interact with other financial incentives schemes at the local/national/EU level. 

firms 

for 

Benefits:  There  are  no  limitations  to  the  sectors  included  in  the  programme.  In  2022, 
committed  annual  energy  savings  were  495.7  GWh,  while  committed  annual  CO2 
reductions were 138 kt CO2. 
Cost (social and public): The programme is funded by the Danish Energy Agency. 
Context: Implemented in Denmark only. 
Scalability:  The  measure  can  support  firms  of  different  size.  The  grant  is  accorded  in 
proportion to energy and CO2 savings, so the aid is proportional to environmental benefits. 
Speed of implementation: This will mostly depend on existing administrative infrastructure 
to evaluate and process subsidy applications.  
Replicability:  The  replicability  will  ultimately  depend  on  fund  availability.  If  no  sufficient 
resources are available, grants cand be mixed with other financial incentives less onerous 
for authorities. 

Business Pool uses grants to incentivise energy and emission savings. The design allows 
to provide (proportionally) more support to small and medium enterprises. This allow for a 
certain flexibility, that could be used to adapt the policy to varying contexts. 

https://ens.dk/media/1125/download 

https://sparenergi.dk/erhvervspuljen 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-48 Energy Saving Loan and the Green Loan 

Name of the 
supporting 
measure: 

Short 
description 

Energy Saving Loan and the Green Loan 

The Energy Saving Loan (Prêt Économie d’Énergie) was introduced by Bpifrance in 2012 
to finance equipment and installation costs eligible under the white certificates scheme. It 
supports small and medium companies in industry and tertiary sectors by covering up to 
40%  of  the  loan  amount  for  resource  optimisation,  product/process  design,  and 
standardised operations. 

The  Green  Loan  is  designed  to  help  SMEs  and  mid-sized  companies  (SMIs)  improve 
environmental  performance  and  competitiveness  through  industrial  process  upgrades, 
decarbonisation, green mobility, and waste management. 

Both measures included guarantees on the loan, and deferred repayment options. 

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Name of the 
supporting 
measure: 

Energy Saving Loan and the Green Loan 

Geographical 
scope 

FR 

Category/type 
of measure 

Financing - grants/subsidies 

Rationale 

By being able to access to low-interest loans and loan-guarantees, companies can finance 
energy efficiency improvements. 

Source 

Energy Efficiency Policies & Measures Database, Graph and Summary Table 

Affected 
Stakeholder 

SMEs 

Effectiveness:  The  measure  effectively  reduces  costs 
that  undergo 
decarbonisation  activities  through  the  implementation  of  low-carbon  technologies.  The 
measure may interact with other financial incentives schemes at the local/national/EU level. 

firms 

for 

Benefits: The direct financial impact of energy saving loans is estimated at around EUR 
140 million between 2020 and 2022. 

Expected 
impacts 

Cost  (social  and  public):  Both  programmes  are  finances  by  a  state-owned  investment 
bank. The French government has supported Bpifrance with EUR 220 million for subsidies 
under the Green Loan measure. 

Context: Implemented in France only. 
Scalability: The measure can support firms of different size.  
Speed of implementation: This will mostly depend on existing administrative infrastructure 
to evaluate and process subsidy applications. 

Replicability: The replicability will ultimately depend on fund availability. 

Details 
affecting 
delivery 

Both programmes are financed by Bpifrance, a French public sector investment bank. 

The measures are designed to support small and medium enterprises. Such support is in 
the form of loans ranging from EUR 10,000 to EUR 500,000 in the case of ESL, and from 
EUR 50,000 to EUR 5 million in the case of the Green Loan. 

Source 
(impacts): 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/1122 

Table 6-49 Energy efficiency networks for the industry 

Name of the 
supporting 
measure: 

Short 
description 

Energy efficiency networks for the industry 

This  programme  provided  public  funding  to  branch-specific  energy  efficiency  networks 
which  are  incentivised  to  promote  long-term  cooperation  between  companies.  These 
networks  typically  operate  over  four  years,  enhancing  skills  and  fostering  lasting 
collaboration even after funding ends. The Swedish Energy Agency primarily funds these 
initiatives  as  forums  for  sharing  knowledge  and  best  practices,  but  not  for  direct 
implementation of energy-saving measures. 

Industry networks focused on improving energy efficiency in industrial processes. 

Geographical 
scope 

SE 

Category/type 
of measure 

Awareness, technical support and training, Financing - grants/subsidies 

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Name of the 
supporting 
measure: 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Energy efficiency networks for the industry 

This  measure  incentivises  communication  and  knowledge  sharing  between  companies 
operating  in  the  same  sectors.  A  such,  best  practices  and  experiences  about 
decarbonisation  investments  and  transition  to  low-carbon  technologies  can  be  shared, 
reducing the perceived risk of impact on product quality. 

Energig - Energy efficiency networks 

https://www.sciencedirect.com/science/article/pii/S1364032116303227 

SMEs, Large enterprises 

Effectiveness:  Knowledge  sharing  networks  can  help  firms  bridge  skills  gaps.  Such 
measures can act in synergies with other measures such as financial schemes to subsidise 
energy audits or energy-efficiency improvements. 

Benefits:  
Cost (social and public): The government initially subsidised the industry networks.  
Context: These supporting measures have been implemented across a wide range of EU 
Member States. 

Scalability: Such measures can be scaled up by increasing the budget for initiatives such 
as events, trainings and workshops. 

Speed of implementation: Knowledge sharing activities can be implemented quickly. 
Replicability: Given their nature, such measures can be implemented across the EU with 
no relevant barriers. It is likely that the effects of external support will be larger in countries 
where SMEs make up a large share of the companies. 

None 

Energig - Energy efficiency networks 

https://www.sciencedirect.com/science/article/pii/S1364032116303227 

Table 6-50 Innovation Fund 

Name of the 
supporting 
measure: 

Short 
description 

Innovation Fund 

The Innovation Fund focuses on highly innovative technologies and flagship projects within 
Europe that can bring about significant emission reductions. The Innovation Fund focuses 
mainly on the demonstration stage, moving a project from the pilot to the scale-up stage. 

Additionally,  the  Fund  showcases  successful  implementation  of  newly  developed 
technologies, thereby reducing perceived risk associated with such innovative solutions. 

Geographical 
scope 

EU 

Category/type 
of measure 

Financing - grants/subsidies 

Rationale 

From  pilot  to  market  uptake,  demonstration  is  challenging  step  in  technological 
development, in particular from small to large demonstration projects because they require 
larger  investments  that  a  company  cannot  bear.  Grants  allocated  through  a  competitive 
bidding can ensure that the most promising technologies are financed and developed. 

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Name of the 
supporting 
measure: 

Innovation Fund 

Source 

https://climate.ec.europa.eu/eu-action/eu-funding-climate-action/innovation-fund_en 

Affected 
Stakeholder 

SMEs, Large companies 

Effectiveness: As of the end of 2022, the Fund had provided EUR 3.14 billion to support 
selected  projects.  These  funds  are  expected  to  support  projects  with  innovative 
technologies, increasing the availability of alternatives for other companies in the relevant 
sectors. The IF acts in synergy with other investment-support initiatives such as InvestEU, 
EIB programmes, Horizon Europe and the Connecting Europe Facility.  

Benefits: Selected projects are expected to deliver a 215 Mt CO2e emission reduction over 
a period of 10 years.  

Expected 
impacts 

Cost (social and public): The fund will be financed with proceedings from EUA auctions. 
The total budget estimated based on a carbon price equal to EUR 75 per tonne of CO2 is 
EUR 40 billion, in 2020-2030. 

Context: This is an EU-wide programme. 70 Projects were selected in 20 of the 30 eligible 
countries (EU and EEA).  

Scalability: The programme could include more projects in the future. 
Speed  of  implementation:    As  an  EU-wide  mechanism,  this  scheme  can  be  complex, 
resulting in slow implementation speed. 

Replicability:  

None 

 Innovation Fund progress report 2022 - Publications Office of the EU 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-51: Green Deal Industrial Plan and Net-Zero Industry Act 

Name of the 
supporting 
measure: 

Short 
description 

Green Deal Industrial Plan and Net-Zero Industry Act 

The  Green  Deal  Industrial  Plan  (GDIP)  is  the  European  Union’s  strategy  to  boost  the 
competitiveness of its clean-tech industries while accelerating the transition to a net-zero 
economy.  The  GDIP  makes  it  a  top  priority  to  create  a  simpler  and  more  predictable 
regulatory  framework.  In  combination  with  net-zero  mandates,  the  GDIP  aims  to  reduce 
uncertainty on policy development, thus facilitating companies’ decision making. 

The  Net-Zero  Industry  Act  reduces  uncertainty  by  providing  clear  investment  signals  for 
industries  (e.g.,  hydrogen,  batteries  etc.)  and  simplifies  administrative  procedures  for 
developing net-zero manufacturing projects. This aims to facilitate planning and increase 
investment certainty. 

Geographical 
scope 

EU 

Category/type 
of measure 

Rationale 

Regulation & standards 

The Green Deal Industrial Plan and the Net-Zero Industry Act establish a strategy for the 
decarbonisation of the industry and reduce uncertainty over the evolution of policies. 

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Name of the 
supporting 
measure: 

Source 

Green Deal Industrial Plan and Net-Zero Industry Act 

https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-
deal/green-deal-industrial-plan_en 

https://single-market-economy.ec.europa.eu/industry/sustainability/net-zero-industry-
act_en 

Affected 
Stakeholder 

Large Companies, SMEs 

Effectiveness: These measures can  effectively support companies  by providing a clear 
and long-term framework for the decarbonisation of industry. 

Benefits: The goal is to reach a climate-neutral industry by 2050.  
Cost (social and public):  
Context: These plans have been approved as part of the broader climate strategy in the 
EU. 

Scalability:  These  initiatives  can  scale  by  leveraging  public-private  investments, 
streamlining  permitting  processes,  and  enhancing  workforce  skills  to  expand  clean-tech 
industries across the EU. 

Speed  of  implementation:  As  EU-wide  measures,  their  design  and  implementation 
require significant coordination efforts between all parties involved. 

Replicability:  medium  to  long  term  planning  can  be  replicated  in  MSs  to  anticipate  EU 
legislation, or to complement it. 

None 

https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-
deal/green-deal-industrial-plan_en 

https://single-market-economy.ec.europa.eu/industry/sustainability/net-zero-industry-
act_en 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-52 Fiscal incentive to fuel switching 

Name of 
the 
supporting 
measure: 

Short 
description 

Fiscal incentive to fuel switching 

Germany's  Carbon  Contracts  for  Difference  (CCfD)  program  is  designed  to  incentivise 
energy-intensive industries to adopt climate-friendly production processes by offsetting the 
additional  costs  associated  with  these  technologies.  This  mechanism  provides  financial 
stability, encouraging investments in sustainable practices. 

Geographic
al scope 

DE 

Category/ty
pe 
measure 

of 

Rationale 

Financing – grants/subsidies 

This  measure  incentivises  the  adoption  of  low-carbon  technologies  by  compensating  the 
additional costs of such technologies. In addition, CCfDs reduce financial risks, by providing 
stability to the investment. 

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Name of 
the 
supporting 
measure: 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Fiscal incentive to fuel switching 

https://www.klimaschutzvertraege.info/en/home 

https://www.klimaschutzvertraege.info/lw_resource/datapool/systemfiles/agent/ewbpublicati
ons/f7531bfd-eb98-11ee-8b39-a0369fe1b6c9/live/document/2403_EN_BMWK-
FAQ_Klimaschutzvertraege.pdf 

SMEs, Large Companies, Energy Suppliers 

Effectiveness:  This  measure  can  effectively  support  companies  by  reducing  the  costs 
associated  to  the  transition  to  cleaner  technologies,  while  also  providing  stability  to  the 
investment. 

Benefits:  This  programme  aims  to  incentivise  the  transition  towards  a  more  sustainable 
industry. The projects that obtained financial support in the first bidding round could deliver 
17 Mt CO2e emissions reduction over the next 15 years. 

Cost (social and public): (DE) The budget for the first round of auctions is set to EUR 4 
billion. 

Context:  
Scalability: (DE) the project is directed to Large and SMEs emitting at least 10 ktCO2 per 
year.  The  measure  could  potentially  be  expanded  to  include  firms  below  the  current 
threshold, conditional to providing the necessary funding.  

Speed of implementation: This measure requires administrative infrastructure to set up the 
financing mechanism. 

Replicability: high replicability possible, depending on available funding. 

Despite  being  directed  mainly  to  large  companies  this  scheme  can  also  include  SMEs, 
emitting more than 10 ktCO2 per year.   

As above. 

Table 6-53 Business Pool 

Name of the 
supporting 
measure: 

Business Pool 

Business Pool is a programme that supports energy and CO2 saving projects up to 50%, 
increasing  the  profitability  of  low-carbon  technologies  adoption.  Private  companies  can 
receive grants for projects that save energy or CO2, such as replacement of gas boilers, 
optimisation of process plants, internal utilisation of surplus heat. The financial support is 
in the form of grants, whose size is based on: 
• 
kWh saved 
•  CO2 saved 
•  Company size: 

Short 
description 

o  Up to 50% for small businesses 
o  Up to 40% for medium businesses 
o  Up to 30% for large businesses 

Geographical 
scope 

DK 

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Name of the 
supporting 
measure: 

Category/type 
of measure 

Rationale 

Business Pool 

Financing - grants/subsidies 

By receiving grants, companies can finance up to 50% of their green investment without 
having to reimburse the funds. This lowers the effective cost reducing the economic burden 
on firms. 

Source 

https://sparenergi.dk/erhvervspuljen 

Affected 
Stakeholder 

SMEs, Large companies 

that  undergo 
Effectiveness:  The  measure  effectively  reduces  costs 
decarbonisation  activities  through  the  implementation  of  low-carbon  technologies.  The 
measure may interact with other financial incentives schemes at the local/national/EU level. 

firms 

for 

Benefits:  There  are  no  limitations  to  the  sectors  included  in  the  programme.  In  2022, 
committed  annual  energy  savings  were  495.7  GWh,  while  committed  annual  CO2 
reductions were 138 kt CO2. 

Cost (social and public): The programme is funded by the Danish Energy Agency. 
Context: Implemented in Denmark only. 
Scalability:  The  measure  can  support  firms  of  different  size.  The  grant  is  accorded  in 
proportion to energy and CO2 savings, so the aid is proportional to environmental benefits. 

Speed of implementation: This will mostly depend on existing administrative infrastructure 
to evaluate and process subsidy applications. 

Replicability:  The  replicability  will  ultimately  depend  on  fund  availability.  If  no  sufficient 
resources are available, grants cand be mixed with other financial incentives less onerous 
for authorities. 

Business Pool uses grants to incentivise energy and emission savings. The design allows 
to provide (proportionally) more support to small and medium enterprises. This allow for a 
certain flexibility, that could be used to adapt the policy to varying contexts. 

https://ens.dk/media/1125/download 

https://sparenergi.dk/erhvervspuljen 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-54 Capital investment for decarbonisation processes 

Name of the 
supporting 
measure: 

Short 
description 

Capital investment for decarbonisation processes 

The programme provides grants to support companies in their decarbonisation activities. 
The grant size is based on the eligible costs, meaning the extra investment costs in a project 
required to go beyond EU standards for environmental protection, to increase the level of 
environmental  protection  in the absence  of EU standards or to achieve a higher level  of 
energy efficiency. The minimum grant is EUR 20,000, the maximum grant is EUR 1 million. 
To  ensure  value  for  money,  the  grant  size  will  depend  on  the  efficiency  of  the  carbon 
reduction achieved by the project. 

Geographical 
scope 

IE 

Category/type 
of measure 

Financing - grants/subsidies 

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Name of the 
supporting 
measure: 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Capital investment for decarbonisation processes 

By receiving grants, companies can finance up to 50% of their green investment without 
having to reimburse the funds. This lowers the effective cost for enterprises and shortens 
the payback period. 

Capital Investment for Decarbonisation Processes | Enterprise Ireland 

capital-investment-for-decarbonisation-processes-reference-document-en-95110.pdf 

SMEs, Large companies 

Effectiveness:  The  measure  effectively  reduces  costs 
that  undergo 
decarbonisation  activities  through  the  implementation  of  low-carbon  technologies.  The 
measure may interact with other financial incentives schemes at the local/national/EU level. 

firms 

for 

Benefits:  There  are  no  limitations  to  the  sectors  included  in  the  programme.  In  2022, 
committed  annual  energy  savings  were  495.7  GWh,  while  committed  annual  CO2 
reductions were 138 kt CO2. 

Cost (social and public): The total budget for the fund is EUR 30 million. 
Context: Implemented in Ireland only. 
Scalability:  scalability  will  ultimately  depend  on  available  funding  and  demand  from 
companies. 

Speed of implementation: This will mostly depend on existing administrative infrastructure 
to evaluate and process subsidy applications. 

Replicability:  The  replicability  will  ultimately  depend  on  fund  availability.  If  no  sufficient 
resources are available, grants cand be mixed with other financial incentives less onerous 
for authorities. 

None 

capital-investment-for-decarbonisation-processes-reference-document-en-95110.pdf 

6.6  INDUSTRY – FEASIBILITY 

This subsection contains the expanded measures from the long list of measures, in table format for Industry – 
Feasibility. 

Table 6-55 Provision of external support 

Name of the 
supporting 
measure: 

Short 
description 

Provision of external support 

AT  -  The  federal  program  Klimaaktiv  for  businesses  (Klimaaktiv  Betriebe)  provides 
comprehensive  professional  support  to  companies,  ranging  from  initial  analysis  to 
implementation of efficiency measures. Key aspects of the program are cooperation with 
market-partners  for  specific  technologies,  benchmarking,  information,  training,  and 
awarding of outstanding businesses. 

CY - Cyprus annual initiatives to promote energy efficiency and renewable energy sources 
through  information  campaigns,  training,  and  awareness  programs  targeting  the  public, 
professionals, and businesses. Key activities include participation to international fairs to 
provide  informational  materials,  promote  funding  opportunities,  and  enable  knowledge-

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Name of the 
supporting 
measure: 

Provision of external support 

sharing and training activities directed at industry specialists. Additionally, the government 
organises regular workshops and training programmes on energy efficiency opportunities. 

FI  -  Energy  advice  to  industries.  In  2009,  within  the  framework  of  the  energy  efficiency 
agreement for industry and businesses, an energy efficiency advice project was started, 
aimed  mainly  at  medium-sized  businesses  that  had  signed  up  to  the  agreement.  The 
businesses were from four sectors of industry as well as the tourism and catering sector. 
Today, there is no distinction according to the size of the company. In the early years energy 
advice was co-funded by the Ministry of Employment and the Economy (MEE) and by trade 
associations but today only by the associations. Decisions on the continuation of the activity 
and  funding  are  made  annually.  Motiva  (government  owned  company  for  sustainable 
development)  is  responsible  for  the  implementation  of  the  advice  project.  The  advisory 
activities have included telephone advice, sector-specific seminars, business visits and the 
production of advice-related materials. 

IE - The Small and Medium Enterprises (SME) Programme by SEAI (Sustainable Energy 
Authority  of  Ireland)  is  an  initiative  specifically  designed  to  support  energy  efficiency 
improvements in small and medium-sized enterprises across Ireland. The program offers a 
range of services and incentives to help SMEs reduce energy consumption, lower operating 
costs, and enhance sustainability. These services include energy audits to identify energy-
saving opportunities, expert advice on implementing energy-efficient measures, access to 
funding  and  grants  for  energy  efficiency  projects,  and  technical  support  to  facilitate  the 
adoption of energy-efficient technologies. 

SE  -  Energy  efficiency  networks  for  the  industry.  Branch-specific  networks  for  energy 
efficiency are a relatively common component of Swedish endeavours for energy efficiency. 
These networks usually receive public funding, and they tend to be based on a four-year 
cooperation between participating companies, whereby skills are enhanced. The purpose 
of the networks is also to produce lasting cooperation, i.e. after the funding has ended, in 
many  cases  cooperation  continues,  which  has  an  impact  on  overall  energy  efficiency 
developments in Swedish industry. Currently there are four industry-related sector networks 
with the aim of improving energy efficiency funded primarily by the Swedish Energy Agency. 

Geographical 
scope 

Category/type 
of measure 

AT, CY, FI, IE, SE 

Awareness, technical support and training 

Rationale 

Technical assistance and trainings can close the gap related to the lack of internal skills. 

AT - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/1033 
CY - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/1072 
FI - Maksuton neuvonta - Energiatehokkuussopimukset 2017–2025 

Regional energy councelling | Energiavirasto 
IE - Large Industry Energy Network (LIEN) | Business & Public Sector | SEAI 
SE - Energig - Energy efficiency networks 

SMEs, Large Companies, Consumers 

Effectiveness:  These  measures  effectively  contribute  to  addressing  the  barrier  by 
enhancing  internal  skills  and  awareness.  Knowledge  sharing  networks  can  help  firms 

Source 

Affected 
Stakeholder 

Expected 
impacts 

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Name of the 
supporting 
measure: 

Provision of external support 

bridge  skills  gaps.  Such  measures  can  act  in  synergies  with  other  measures  such  as 
financial schemes to subsidise energy audits or energy-efficiency improvements. 

Benefits: (IE) Annual energy savings for 10.33 PJ in 2022, 11.15 PJ in 2023. Estimated 
annual energy savings until 2030 are equal to 11.97 PJ. 

Cost (social and public): The financial contribution from public authorities is expected to 
cover  the  costs  for  the  creation  and  distribution  of  informative  material,  trainings  and 
workshops. In Sweden, the government no longer subsidises industry network. 

Context: These supporting measures have been implemented across a wide range of EU 
Member States. 

Scalability: Such measures can be scaled up by increasing the budget for initiatives such 
as events, trainings and workshops. 

implementation:  External  supporting  activities  requires  administrative 
Speed  of 
infrastructure and the identification of experts. The provision of informational material can 
be implemented with ease. 

Replicability: Given their nature, such measures can be implemented across the EU with 
no relevant barriers. It is likely that the effects of external support will be larger in countries 
where SMEs make up a large share of the companies. 

External support programmes can be easily adapted to match country- or region-specific 
contexts  in  terms  of  general  awareness,  technical  expertise,  average  firm  sizes  in  the 
sectors involved etc. 

As above. 

Details 
affecting 
delivery 

Source 
(impacts): 

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Table 6-56 Energy audits 

Name of the 
supporting 
measure: 

Energy audits 

AT - Voluntary Energy Audits for Small and Medium Enterprises. Energy consultations and 
audits  are  carried  out  in  Austria  by  trained  and  independent  auditors.  Energy  audits  for 
small and medium enterprises (SMEs) are supported in Austria by the Federal States. All 
Austrian  Federal  States  have  their  own  audit  programmes  with  network  of  energy 
consultants. 

FI - Energy auditing has been one of Finland’s main energy conservation tools since 1992. 
They  have  been  mentioned  in  all  the  national  climate  strategies  since  1992.  Finland´s 
Energy Audit Programme (the EAP) started as a subsidy policy in 1992, was developed 
into a programme in 1993 and was launched in practice in 1994. The EAP is a full-scale 
programme  consisting  of  the  following  elements:  programme  administration,  detailed 
guidelines, auditor training and authorisation as well as a monitoring system and promotion 
activities. The EAP is a voluntary programme but promoted by a 40% subsidy for industrial 
participants by the Ministry of  Economic  Affairs and  Employment (MEAE).  Since 5 June 
2014 large companies have not been receiving subsidies for audits because they are within 
the sphere of mandatory audits required by the Energy Efficiency Directive. 

IE - SEAI’s Support Scheme for Energy Audits (SSEA) will offer SMEs a €2,000 voucher 
towards the cost of a high-quality energy audit. In most cases, this will cover the total cost 
of  the  audit.  Application  to  the  scheme  is  easy,  with  automatic  approval  for  eligible 
businesses. SMEs that participate in the programme receive targeted supports to improve 
energy  efficiency  including:  -  Advice  and  mentoring  from  a  specialist  including  a  site 
assessment  for  companies  with  a  significant  energy  spend,  -  Training  in  energy 
management for groups of SMEs, - Online energy management tools 

AT, FI, IE 

Awareness, technical support and training 

Energy audits are a useful tool to increase awareness on actual energy consumption and 
on ways to increase energy efficiency. 

AT - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4379 
FI - https://www.motiva.fi/ratkaisut/energiakatselmustoiminta/tuetut_energiakatselmukset 
IE - Energy Audits for SMEs | Business | SEAI 

SMEs, Large Companies 

Effectiveness: Energy audits are effective in providing accurate information on how much 
energy  is consumed  and in what processes. Often,  energy audits are complemented  by 
guidance on actions to improve energy efficiency. These measures are expected to interact 
with  policies  aimed  at  increasing  awareness  and  at  providing  financial  support  for 
decarbonisation. 

Benefits: (AT) Annual savings for 2020 are estimated in 0.415 PJ, avoiding 15.78 kt CO2. 
(IE) Energy savings achieved in 2010 are equal to 180 GWh. Energy savings for 2020 are 
estimated in 0.828 PJ. 

Cost (social  and public):  (FI) Between  1992 and 2014 EUR 37.6  million were  given  in 
subsidies. Between 2018 and 2021, 60,000 euros were used to finance energy audits. 

Context: These measures have been implemented in Austria, Finland and Ireland.  

158 

Short 
description 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

 
 
 
 
 
 
 
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Name of the 
supporting 
measure: 

Energy audits 

Scalability: Budget is the main constraint to subsidise energy audits. Large companies are 
no longer eligible as they are obliged to carry out energy audits.  

Speed  of  implementation:  This  will  ultimately  depend  on  experts’  availability  and  the 
needs from the industry sector. 

Replicability: These measures can be replicated across the EU. The larger benefits would 
be  expected  in  countries  where  SMEs  do  not  perform  voluntary  energy  audits.  Other 
Member States could leverage  past experience with  energy audits programmes in  other 
sectors. 

Details 
affecting 
delivery 

None 

Source 
(impacts): 

AT - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4379 
FI - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/1118 

IE 
database.html#/measures/1180 

- 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-

Energy Audits for SMEs | Business | SEAI 

Table 6-57 Support Programme for the Energy Transition of the Industry (PACTE Industrie) 

Name of the 
supporting 
measure: 

Support Programme for the Energy Transition of the Industry (PACTE Industrie) 

This  programme  aims  to  support  industry  throughout  their  decarbonisation  and  energy 
transition plan by providing tailored training and other support activities. PACTE Industrie 
can allocate EUR 49 million of subsidies to eligible firms between 2023 and 2026. Trainings 
are subsidised up to 80% of the cost, while audits are subsidised up to 70% of the cost. 

To improve energy management, beneficiaries can: 

Short 
description 

- apply to a training on energy optimisation projects adapted to their enterprise. 

- conduct an audit to assess potential transition of the site’s energy mix. 

- deploy an energy management system compliant with ISO 50001.  

Firms can also apply to the “ACT pas à pas” training to be assisted in the development of 
a decarbonisation strategy.  

PRO-SME incentivises the implementation of ISO 50001 Energy Management Systems in 
companies, through the payment of a bonus. The premium is equal to 20% of the annual 
energy expenditure of ISO 50001 certified sites (VAT excl.), up to 40,000 euros. 

Geographical 
scope 

FR 

Category/type 
of measure 

Rationale 

Awareness, technical support and training, Financing - grants/subsidies 

Subsidising  training  activities  can  help  increase  skills  and  knowledge  about  energy 
management and decarbonisation strategies. 

Source 

Industriels, découvrez le programme PACTE Industrie | Entreprises | Agir pour la transition 
écologique | ADEME 

https://pro-smen.org/details-de-la-prime-pro-smen/ 

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Name of the 
supporting 
measure: 

Affected 
Stakeholder 

Expected 
impacts 

Support Programme for the Energy Transition of the Industry (PACTE Industrie) 

SMEs, Large Companies 

Effectiveness:  This  measure  can  effectively  increase  awareness  and  internal  skills  by 
subsidising trainings, energy management systems and energy audits. The policy acts in 
synergy with the ACT programme, which provides trainings on decarbonisation. 

Benefits:  The  estimated  energy  savings  deriving  from  the  trainings  and  the  technical 
support provided as part of the programme are 1-2 TWh/year. This represents less than 
0.1% of energy consumption in the industrial sector in 2022. 

Cost  (social  and  public):  The  budget  allocated  for  this  measure  is  EUR  49  million, 
between 2023 and 2026. 

Context: This measure is implemented in France only. 
Scalability: Scalability will ultimately depend on the available resource to finance trainings 
and on the availability of trained experts. 

Speed of implementation: This will mostly depend on existing administrative infrastructure 
to evaluate and process subsidy applications. 
Replicability: This measure can be implemented across the EU with no relevant barriers. 
Replicability will be affected by funds availability. 

Details 
affecting 
delivery 

This  policy  focuses  on  incentivising  trainings  and  energy  audits  to  improve  energy 
management  of  firms.  Replicating  this  measure  in  other  countries  would  produce  better 
results in countries where small industry players lack expertise and do not perform energy 
audits on a voluntary basis. 

Source 
(impacts): 

Industriels, découvrez le programme PACTE Industrie | Entreprises | Agir pour la transition 
écologique | ADEME 

Table 6-58 Feasibility studies of energy performance or decarbonisation of industrial companies 

Name of the 
supporting 
measure: 

Short 
description 

Feasibility studies of energy performance or decarbonisation of industrial 
companies 

This programme is designed to assist SMEs with an industrial activity to perform feasibility 
studies  for  energy-efficiency  improvements.  The  feasibility  study  provides  guidance 
on technical, economic, regulatory and environmental elements ensuring the SMEs have 
the  adequate  understanding  on 
feasibility  of  energy  efficiency  or  broader 
decarbonisation initiatives. 

the 

Geographical 
scope 

FR 

Category/type 
of measure 

Rationale 

Source 

Awareness, technical support and training, Financing - grants/subsidies 

This  programme  provides  companies  an  understanding  on  the  feasibility  for  energy-
efficiency improvements. 

Aide  aux  études  de  faisabilité  de  performance  énergétique  ou  de  décarbonation  en 
industrie - les-aides.fr 

Études  de  faisabilité  de  performance  énergétique  ou  de  décarbonation  d'entreprises 
industrielles | Entreprises | Agir pour la transition écologique | ADEME 

Affected 
Stakeholder 

SMEs 

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Name of the 
supporting 
measure: 

Feasibility studies of energy performance or decarbonisation of industrial 
companies 

Effectiveness: This measure aims to assess the feasibility of decarbonisation plans, and 
to suggest technical solutions to improve energy efficiency in utilities and processes. This 
policy may interact with other subsidy schemes for feasibility studies or trainings. 

Benefits: 

Cost (social and public): 
Context: This measure is implemented in France only. The policy context includes several 
measures aiming to promote energy-efficiency investments. 

Scalability: The  measure can be expanded to cover  industry players, by expanding the 
budget to cover subsidies. 

Speed of implementation: This will mostly depend on existing administrative infrastructure 
to evaluate and process subsidy applications. 

Replicability: This measure can be implemented across the EU with no relevant barriers. 
Replicability will be affected by funds and feasibility study experts’ availability. 

None 

Aide  aux  études  de  faisabilité  de  performance  énergétique  ou  de  décarbonation  en 
industrie - les-aides.fr 

Études  de  faisabilité  de  performance  énergétique  ou  de  décarbonation  d'entreprises 
industrielles | Entreprises | Agir pour la transition écologique | ADEME 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Table 6-59 Subsidy schemes 

Name of the 
supporting 
measure: 

Subsidy schemes 

AT - The Domestic Environmental Support Programme (Umweltförderung Inland - UFI) is 
one of the most important subsidy programmes for companies with the emphasis on climate 
protection,  energy  saving,  renewable  energies  and  prevention  of  air  pollution.  The 
subsidies consist of an investment grant of up to 30% of the investment costs. Funding is 
provided  for  measures  for  the  efficient  use  of  energy  in  commercial  and  industrial 
production  processes,  the  thermal  renovation  of  existing  buildings  and  heat  recovery 
systems. The UFI incentive scheme  is financed  from the budget of the  Austrian Federal 
Ministry of Climate Action, Environment, Energy, Mobility, Innovation and Technology. The 
Kommunalkredit  Public  Consulting  GmbH  is  entrusted  as  a  settlement  agency  with  the 
programmes. 
of 
practical 

development 

support 

Short 
description 

FI-  Subsidies  for  energy  audits  and  energy  investments.  The  energy  aid  of  Ministry  of 
Economic  Affairs  and  Employment  is  granted  to  companies  and  communities  for 
investments in energy saving measures, investments in renewables and for energy audits. 
Annually part of the budget is earmarked to energy audits and energy saving investments. 
The aid is applied from Business Finland or the Ministry. The subsidy decision is made by 
the Ministry when the investment is above 5 million euro or above 1 million euro when it 
concerns new technology. The subsidy for conventional energy efficiency investments is 
limited  to  the  participants  to  the  energy  efficiency  agreements  and  the  subsidy  level  is 
typically  20%.  Investments  to  new  technology  are  eligible  for  subsidy  levels  of  20–35%. 
Investments using the ESCO model can benefit of higher subsidy levels. 

DE - The Environmental Protection Program of the KfW promotional bank provides long-

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Name of the 
supporting 
measure: 

Subsidy schemes 

term financing for environmental protection measures for example in the areas of building 
and energy technology; building envelopes; machinery; process cooling and heating; heat 
technology; 
recovery/waste  heat  utilization;  measurement,  regulation  and  control 
information  and  communication  technology;  procurement  of  low-emission  commercial 
vehicles; including the associated costs for planning and implementation support for SMEs 
at favourable interest rates. The anticipated energy savings must be calculated before the 
application is filed; minimum requirements exist with regard to the level of saving (for new 
investments: 10% less than the average for the industry; for replacement investments: 30 
% less than the mean consumption for the last three years). 

HU - Corporate income tax credit for energy efficiency investments. The tax incentive can 
be up to 30% of eligible costs, but not more than the HUF equivalent of EUR 15 million at 
present value, which can be increased by 20% for small enterprises, and 10% for medium-
sized enterprises. The tax incentive can be used at the earliest in the tax year in which the 
investment became  operational, and in the  following five tax years. The project  must be 
operated for at least five years. The tax incentive may only be claimed in connection with 
projects aimed at energy efficiency improvement. No tax credit can be applied with respect 
to  investments  aiming  at  fulfilling  the  mandatory  environmental  protection  standards  or 
minimum mandatory energy efficiency standards. 

IT - Transition 5.0. The Plan provides 6.3 billion euros in addition to the 6.4 billion euros 
from the budget law, for a total of approximately 13 billion in the two-year period 2024-2025. 
The Transition Plan 5.0 grants a tax credit to enterprises that invest in innovation projects 
resulting  in  a  reduction  in  energy  consumption.  The  tax  credit  is  proportional  to  the 
expenditure incurred for the investments made and depends on the reduction in final energy 
consumption (at least 3 percent) or energy savings in processes (at least 5 percent) due to 
investments in digital activities. 

LV - Loans for energy efficiency improvement, as well as RES technologies are issued up 
to 5 MEUR and up to 90% of the project costs (beneficiary contribution from 10%).  The 
main criterion is adequate flow of money - payment of loan due to energy savings. The soft 
interest rate applied, ALTUM finds and offers the  most appropriate solution of financing. 
The  loan  can  be  received  by  wide  range  of  interested  parties  of  commercial  sector  – 
individual merchants, micro enterprises, SMEs, large enterprises, state and municipalities 
owned companies. 

NL - On 7 November 2022, Green Credit Guarantee (BMKB-Green) launched to help SMEs 
to become more sustainable. Applying for a loan under the BMKB-Green goes through the 
financier  of  the  SME  and  is  guaranteed  by  the  state.  Investments  in  business  premises 
must at least lead to energy label C. 

PL  -The  Energy  Plus  Priority  Programme,  to  be  continued  in  2020  and  2021,  provides 
grants  to  entrepreneurial  projects  related  to  energy  efficient  upgrades  of  industrial 
installations and devices and heat networks. The beneficiaries of the Programme can seek 
a grant or loan covering, respectively, 50% or 85% of eligible costs. 

ES - This program encourages and promotes actions in SMEs and large companies in the 
industrial sector that reduce carbon  dioxide emissions and final energy consumption, by 
improving energy efficiency. To this end, the best available technologies are incorporated 
into  equipment  and  processes  and  energy  management  systems  are  implemented.  The 
IDAE  is  responsible  for  the  coordination  and  monitoring  of  the  program,  while  the 
operational management corresponds to the autonomous communities and cities, through 
the publication of calls for aids in their territories for the distribution of the amounts assigned 
to  them,  and  distribution  of  the  aid  among  the  final  beneficiaries.  The  aid,  regulated  by 

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Name of the 
supporting 
measure: 

Subsidy schemes 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

Royal Decree 263/2019, of April 12, will be granted in the modality of monetary endowment 
without  compensation,  with  a  maximum  amount  of  30%  of  the  corresponding  eligible 
investment, and a maximum amount of the eligible investment per application of €4 million. 

AT, FI, DE, IT, LV, HU, NL, PL, ES 

Financing - grants/subsidies, Financing - Tax incentives, Financing - Soft loans/loans 

To cover the investments costs, low interest rates/guarantees for loans, tax deductions or 
grants can be helpful in overcoming the lack of internal fundings. 

AT - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/1028  
FI - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/1114  
DE - https://www.bundeswirtschaftsministerium.de/Redaktion/EN/Publikationen/national-
energy-efficiency-action-plan-eeap.pdf?__blob=publicationFile&v=1 
HU - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/1172  
IT - Transizione 5.0 
LV - Loans for energy efficiency or sustainability of companies - Altum 
NL - SME credit guarantee scheme (BMKB) | Business.gov.nl 
PL - https://www.iea.org/policies/14321-energy-plus-priority-programme  
ES - Direct granting of aid for energy efficiency actions in SMEs and large companies in 
the industrial sector | Idae 

Affected 
Stakeholder 

SMEs, Large companies 

Expected 
impacts 

Effectiveness:  These  measures  use  a  wide  range  of  financial  incentives  to  effectively 
reduce  the  costs  associated  to  energy  efficiency  improvements.  This  makes  EE 
improvements more attractive from an investment perspective. 

Benefits:  (AT)  cumulative  energy  savings  in  2014-2020  are  60.1  PJ.  (DE)  Estimated 
annual savings in  2020 are 1.8  PJ, with a reduction  in  emissions  of  10.9  MtCO2e. (ES) 
Cumulative total energy savings for 2030 are 64 PJ.   

Cost  (social  and  public):  (AT)  the  yearly  budget  allocated  to  the  measure  is  EUR  90 
million. (FI) The budget for the measure was EUR 198 million from 2018 to 2023. (DE) The 
budget for 2020 was EUR 2 million. (NL) The government guarantees 90% of the loans. 
The loan size will depend on the credit needs of firms. The total budget for BMKB is EUR 
1.5 billion. (ES) The budget was EUR 626 million between 2019 and 2024. 
Context:  Financial  schemes  to  support  energy  efficiency  improvements  have  been 
implemented across the EU. 

Scalability:  Scalability  depends  on  available  funding,  administrative  capacity,  and 
alignment with market demand to ensure widespread adoption. 

Speed of implementation: Subsidy schemes can be implemented relatively quickly, but 
effectiveness  depends  on  streamlined  administration,  timely  fund  allocation  and  the 
complexity of the scheme. 

Replicability:  These  measures  can  be  implemented  across  EU  Member  States,  with 
budget  availability  being  the  main  constraint.  Financial  support  can  be  tailored  to  reflect 
varying levels of public resources. 

Details 
affecting 
delivery 

Financing  schemes  can  be  adapted  based  on  public  resources  availability  and  on 
companies’ needs. Grants may provide a greater incentive to firms, although at the price of 

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Name of the 
supporting 
measure: 

Subsidy schemes 

a larger expense for the government. Loan Guarantees and tax deductions can lower the 
need for public funds but will also decrease the incentive for firms. 

Source 
(impacts): 

As above. 

Table 6-60 DECARB IND 25 and DECARB IND+ 

Name of the 
supporting 
measure: 

DECARB IND 25 and DECARB IND+ 

As part of France 2030, DECARB IND 25 is a call for projects, targeted to the industrial 
sector  to  reduce  GHG  emissions.  To  be  eligible,  the  project  must  require  a  minimum 
investment of €3 million, with a reduction in emissions equal to 1,000 tonnes of CO2 per 
year. The technological approach must rely at least on one of the following: 

-  Energy efficiency 

Short 
description 

-  Modification of the energy mix 

-  Modification of the material mix 

-  Carbon, capture, upgrading and storage. 

Projects will be evaluated based on price and non-price criteria. 

DECARB IND+ follows the same approach but is directed to larger projects, with a minimum 
investment equal to €50 million, with a maximum aid application equal to €200 million. The 
total budget for DECARB IND+ is equal to €5 billion. 

Geographical 
scope 

FR 

Category/type 
of measure 

Rationale 

Source 

Financing - grants/subsidies, Financing - Soft loans/loans 

To cover the investments costs, low interest rates/guarantees for loans, tax deductions or 
grants can be helpful in overcoming the lack of internal fundings. 

https://agirpourlatransition.ademe.fr/entreprises/aides-
financieres/20240530/decarbonation-lindustrie-decarb-ind-25 

https://agirpourlatransition.ademe.fr/entreprises/aides-
financieres/20230619/decarbonation-lindustrie-decarb-ind 

Affected 
Stakeholder 

SMEs, Large companies 

Expected 
impacts 

Effectiveness: These measures target the industrial sector by providing funds to support 
decarbonisation  projects.  Eligibility  is  linked  to  investment  size  and  GHG  emission 
reductions, to ensure projects with large potential are prioritised. 

Benefits: 
Cost (social and public): The total budget for DECARB IND+ is EUR 5 billion. 
Context: These measures have been implemented as part of the France 2030 programme, 
which dedicates EUR 5.6 billion to the decarbonisation of French industry. 

Scalability: These programmes can be expanded depending on funds availability. 
Speed of implementation: This will mostly depend on existing administrative infrastructure 
to evaluate and process subsidy applications. 

Replicability: Highly replicable, with main constraint being funds availability. 

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Name of the 
supporting 
measure: 

Details 
affecting 
delivery 

Source 
(impacts): 

DECARB IND 25 and DECARB IND+ 

Policies such DECARB IND 25 and DECARB IND+ focus respectively on SMEs and large 
companies. In both cases, projects are selected depending on their impact. The selection 
is based on economic efficiency (priority is given to project with higher emission reductions 
per EUR or aid) and decarbonisation ambition. 

https://agirpourlatransition.ademe.fr/entreprises/aides-
financieres/20240530/decarbonation-lindustrie-decarb-ind-25 

https://agirpourlatransition.ademe.fr/entreprises/aides-
financieres/20230619/decarbonation-lindustrie-decarb-ind 

Table 6-61 Energy Saving Certificates 

Name of the 
supporting 
measure: 

Energy Savings Certificates 

Short 
description 

FR - The energy savings certificates (Certificats d'économie d'énergie – CEE) have 
been established in 2005. The scheme aims to reduce energy demand from multiple 
sectors. The French Government determines a goal in terms of energy savings, and 
energy suppliers must bear this goal, in relation to their share of the total supply. Energy 
suppliers are therefore incentivised to promote energy savings projects. 
Energy savings projects can be implemented by households, local authorities, or 
professionals, including all sectors of activity (residential, tertiary, industrial, agricultural, 
transport, etc.). CEEs are awarded, under certain conditions, by the services of the 
Ministry of Energy, and then bought by energy suppliers, in order for them to prove they 
have fulfilled their energy savings quota. 

ES - The Energy Saving Certificates (CAE) system allows obligated entities (such as 
gas and electricity companies) to meet their energy-saving requirements by presenting 
CAEs, which certify recognised final energy consumption reductions resulting from energy 
efficiency measures. 

The CAE System aims to contribute to Spain's 2021-2030 energy-saving targets under 
Directive 2012/27/EU while providing flexibility for obligated entities, reducing compliance 
costs, improving efficiency, and enabling private entities to record their energy savings. 
Additionally, it offers financial benefits to consumers and promotes innovation in energy 
efficiency. 
Key innovations include: 
•  Delegated subjects (SD): These entities can assume part of the energy-saving 

obligations on behalf of obligated subjects (SO) and implement efficiency measures. 
•  Auction mechanism: The government can auction energy savings needs, supported 
by the National Energy Efficiency Fund (FNEE), to increase flexibility and financing 
options. 

•  National CAE Registry: Ensures traceability of CAEs, managed by the General 

Directorate of Energy Policy and Mines (MITERD). 

CAE certificates are issued per kWh and can only be held by SOs or SDs. Obligated entities 
fulfil  their  obligations  through  financial  contributions  to  the  FNEE  and/or  by  presenting 
CAEs, which must be settled within their validity period. 

Geographical 
scope 

FR, ES 

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Name of the 
supporting 
measure: 

Category/type 
of measure 

Rationale 

Energy Savings Certificates 

Regulation & standards 

These  measures  are  useful  tools  for  national  governments  as  they  incentivise  energy-
efficiency improvements without direct government funding. Such solutions can be used to 
complement other policies incentivising increased energy-efficiency. 

FR: https://www.service-public.fr/particuliers/vosdroits/F35584?lang=en 

Source 

https://www.ecologie.gouv.fr/politiques-publiques/operations-standardisees-deconomies-
denergie 

ES: https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/5044  

Affected 
Stakeholder 

Consumers, SMEs, Large Companies, Energy Suppliers 

Effectiveness: These measures incentivise energy suppliers to contribute to national 
energy saving target. Impact assessment show that the measure is effective in achieving 
energy savings. These policies may interact with other measures mandating or 
subsidising energy efficiency improvements. 
Benefits:(FR) For the period 2014-2020, the scheme generated 415.85 TWh of 
cumulative total savings. 17% of the achieved savings were obtained in the industrial 
sector. 
Cost (social and public): As it is currently designed, energy and fuel suppliers bear the 
costs for renovations. In France, the programme has been amended to ensure that ESC 
deliver savings in households experiencing energy poverty. 
Context: These measures have been implemented in several countries within the EU in 
addition to France and Spain. 
Scalability: This policy could be expanded depending on the emission reduction/energy 
saving targets in the country. However, the implementing country should carefully assess 
the effects on energy suppliers, which will bear the costs of the programme. 
Speed of implementation: This will mostly depend on existing administrative 
infrastructure to manage energy saving certificates. Additionally, companies should be 
given advance notice so that they can prepare for implementation. 
Replicability:  These  policies  can  be  replicated  in  MSs  where  the  energy  market  is 
comparable. Energy savings obligations on energy and fuel suppliers must be designed in 
a balanced way. 

These  policies  incentivise  energy  efficiency  investment  across  all  end-users,  including 
households, local authorities and businesses. In France, the policy was modified to ensure 
that  a  certain  number  of  energy-efficiency  improvements  are  directed  to  low-income 
households, to address energy poverty. 

As above. 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

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Table 6-62 Innovation Fund 

Name of the 
supporting 
measure: 

Short 
description 

Innovation Fund 

The Innovation Fund focuses on highly innovative technologies and flagship projects within 
Europe that can bring about significant emission reductions. The Innovation Fund focuses 
mainly on the demonstration stage, moving a project from the pilot to the scale-up stage. 

Geographical 
scope 

EU 

Category/type 
of measure 

Financing - grants/subsidies 

Rationale 

From  pilot  to  market  uptake,  demonstration  is  challenging  step  in  technological 
development, in particular from small to large demonstration projects because they require 
larger  investments  that  a  company  cannot  bear.  Grants  allocated  through  a  competitive 
bidding can ensure that the most promising technologies are financed and developed. 

Source 

https://climate.ec.europa.eu/eu-action/eu-funding-climate-action/innovation-fund_e 

Affected 
Stakeholder 

SMEs, Large companies 

Effectiveness: As of the end of 2022, the Fund had provided EUR 3.14 billion to support 
selected projects. Successful projects support the uptake of innovative technologies. The 
IF  acts  in  synergy  with  other  investment-support  initiatives  such  as  InvestEU,  EIB 
programmes, Horizon Europe and the Connecting Europe Facility.  
Benefits: Selected projects are expected to deliver a 215 Mt CO2e emission reduction over 
a period of 10 years.  In terms of innovation, the IF aims to support innovative technologies 
that can help decarbonise industry. 
Cost (social and public): The fund will be financed with proceedings from EUA auctions. 
The total budget estimated based on a carbon price equal to EUR 75 per tonne of CO2 is 
EUR 40 billion, in 2020-2030. 
Context: 70 Projects were selected in 20 of the 30 eligible countries (EU and EEA).  
Scalability: More projects in a wider range of areas could be funded, provided they meet 
the requirements and there is both available funding and demand from industry. 
Speed  of  implementation:  As  an  EU-wide  mechanism,  this  scheme  can  be  complex, 
leading to a slow implementation process. Furthermore, its effects on innovation will take 
additional time to materialise due to the time required for project development. 
Replicability: This scheme could be replicated at the national level. Revenues from carbon 
pricing measures could be used to fund research and innovative technologies, supporting 
the idea that carbon pricing can indirectly incentivise innovation. 

The innovation fund is an important pillar of the EU decarbonisation strategy as it finances 
innovation in areas where innovation is needed to reach EU goals. All the beneficiaries are 
expected to share their acquired knowledge, encourage scaling up to commercial readiness 
and  accelerate  the  deployment  and  commercialisation  of  the  supported  technologies.  In 
this way, the IF tackles the lack of alternative technologies that may impede industries to 
decarbonise. 

Innovation Fund progress report 2022 - Publications Office of the EU 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

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Table 6-63 National Investment Funds supporting R&I 

Name of the 
supporting 
measure: 

National Investment Funds supporting R&I 

FR - France 2030 – Industrial Decarbonisation section of the Investment Plan. The plan is 
especially targeting the deployment of four technologies to help decarbonise the industrial 
sector: low-carbon hydrogen, industrial heat from biomass, electrification of processes, and 
carbon  capture,  utilisation  and  storage.  The  French  Acceleration  Strategies  2030 
accompany industrialisation projects in the same way as those for the design of innovative 
products.  By  supporting  key  stages  of  development  depending  on  the  maturity  of 
innovations,  AS  promote  a  better  link  between  upstream  and  downstream  of  the 
deployment of a technology.  

DE  -  National  decarbonisation  programme.  This  measure  is  a  funding  programme 
concerned with the fields of development, demonstration and market launch. The funding 
programme  is  designed  in  particular  to  promote  the  greatest  possible  reduction  in 
greenhouse  gas  emissions  during  the  production  of  emission-intensive  goods,  the 
optimisation of process chains, the conversion of processes to the use of renewable energy 
sources  and  raw  materials,  and  the  substitution  of  emission-intensive  goods  and 
technologies  for the conversion  of  hydrogen  as well  as technologies for using  CO2. The 
funding programme is being implemented by the Competence Centre on Climate Change 
Mitigation in Energy-Intensive Industries (KEI) in Cottbus. 

IE  -  SEAI  National  Energy  Research  Development  and  Demonstration  (RD&D)  Funding 
Programme.  The  National  Energy  RD&D  Programme  takes  a  technology-agnostic 
approach  when  funding  energy  RD&D.  Prioritisation  of  energy  areas  to  be  funded  are 
decided on the basis of an annual cross-Government consultation which is run by the SEAI 
(which focuses specifically on the energy sector and its connections to other sectors). This 
coordinated approach ensures that energy research funding is highly targeted. Funding is 
available to all relevant areas, and recent research projects include those in areas such as: 
bioenergy,  offshore  wind  energy,  ocean  energy,  smart  grids,  hydrogen,  solar  energy, 
energy  in  transport,  energy  in  agriculture,  energy  efficiency,  behavioural  change  and 
energy modelling. 

NL - Accelerated Climate-related Investments in Industry (VEKI). In the Netherlands the 
VEKI  subsidy  scheme  offers  subsidy  possibilities  for  investment  projects  in  emission 
reduction technologies in industry that have passed development and demonstration, but 
still  had  high  investment  demands  and  paid  back  times  in  excess  of  5  years.  Eligible 
projects  include  e.g.  investments  related  to  energy  efficiency,  recycling  of  waste,  local 
infrastructure and/or other CO2 reduction technologies 

FR, DE, IE, NL 

Financing - grants/subsidies 

Technologies  could  pass  the  demonstration  stage  but  costs  for  large  production  scale 
or/and additional investments costs could hinder their possibility of market uptake. Grants 
to close this gap can bridge the two sides of R&I. 

FR - PEPR Spleen - PEPR Spleen 
DE - NECP (en version, p.259) https://commission.europa.eu/publications/germany-final-
updated-necp-2021-2030-submitted-2024_en 
Federal Fund for Industry and Climate Action: Module 1 | Kompetenzzentrum Klimaschutz 
in energieintensiven Industrien (KEI) 

168 

Short 
description 

Geographical 
scope 

Category/type 
of measure 

Rationale 

Source 

 
 
 
 
 
 
 
 
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Name of the 
supporting 
measure: 

National Investment Funds supporting R&I 

IE  -  NECP  (p.308-310)  https://commission.europa.eu/publications/ireland-final-updated-
necp-2021-2030-submitted-2024_en 
NL - DEI+: Energy and Climate Innovations | RVO.nl 

Affected 
Stakeholder 

SMEs, Large Companies 

Expected 
impacts 

Effectiveness: These measures enhance innovation by supporting innovative 
decarbonisation solutions in the industrial sector. These include the deployment of low-
carbon hydrogen, renewable energy, optimisation of processes. Technologies that have 
passed development and demonstration are supported to ensure their access to the 
market. 
Benefits: (FR) It is estimated that the 270 projects supported will achieve emission 
reductions of 6.6 MtCO2e per year. 
Cost (social and public): (FR) France 2030 has a budget for industrial decarbonisation 
equal to EUR 5.6 billion for operations in 2021-2025. 
Context: National investment funds have been implemented in several European 
countries.  
Scalability: these measures can be scaled up but should be limited to relevant 
technologies with high potential in terms of efficiency improvements / emissions reduction. 
Speed of implementation: Implementing national investment funds require funding 
allocation processes, regulatory approvals and time for project evaluation. Industry 
players may require some time to consider participation. Results on innovation require 
additional time as supported project must be developed. 

Replicability: 
These policies are highly replicable, but the extent of replication will ultimately depend on 
public resource availability. 

Details 
affecting 
delivery 

None 

Source 
(impacts): 

FR - PEPR Spleen - PEPR Spleen 
DE - NECP (en version, p.259) https://commission.europa.eu/publications/germany-final-
updated-necp-2021-2030-submitted-2024_en 
Federal Fund for Industry and Climate Action: Module 1 | Kompetenzzentrum Klimaschutz 
in energieintensiven Industrien (KEI) 

IE  -  NECP  (p.308-310)  https://commission.europa.eu/publications/ireland-final-updated-
necp-2021-2030-submitted-2024_en 
NL - DEI+: Energy and Climate Innovations | RVO.nl 

6.7  INDUSTRY – REGULATION 

This subsection contains the expanded measures from the long list of measures, in table format for Industry – 
Regulation. 

Table 6-64 Sustainable Industry Infrastructure Program (PIDI) & Multi-Year Program Infrastructure Energy and 
Climate (MIEK) 

Name of the 
supporting 
measure: 

Short 
description 

Sustainable Industry Infrastructure Program (PIDI) & Multi-Year Program 
Infrastructure Energy and Climate (MIEK) 

Sustainable  Industry  Infrastructure  Program  (PIDI)  &  Multi-Year  Program  Infrastructure 
Energy and Climate (MIEK). PIDI includes a Multi-Year Program Infrastructure Energy and 

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Name of the 
supporting 
measure: 

Sustainable Industry Infrastructure Program (PIDI) & Multi-Year Program 
Infrastructure Energy and Climate (MIEK) 

Climate (MIEK), in which stakeholders make agreements about the main infrastructure for 
sustainable  industry  (in  the  clusters)  and  projects  with  national  importance,  including 
regional projects with consequences for the national energy system, are discussed. This 
concerns  the  infrastructure  for  H2,  CO2,  electricity,  heat,  gas  and  the  circular  economy. 
Cluster Energy Strategies (CES) and a safehouse are also used for secure exchange of 
relevant data for the program. 

Geographical 
scope 

NL 

Category/type 
of measure 

Regulation & standards 

Rationale 

Despite not directly implying changes to regulated processes, these programmes provide 
an  example  on  how  industry  and  government  can  cooperate  to  develop  a  roadmap  for 
infrastructure development. Such a scheme could inspire cooperation in other areas, where 
regulation poses a barrier to decarbonisation. 

Source 

Multi-year Programme for Energy and Climate Infrastructure (MIEK) | RVO.nl 

Affected 
Stakeholder 

SMEs, Large companies 

Expected 
impacts 

Effectiveness: PIDI and MEIK are related projects that aim to accelerate the creation of 
infrastructure for sustainable industry, considering the priorities as outlined by the 
industrial sector and lowering the frictions to the transition. 
Benefits:  
Cost (social and public):  
Context: This policy has been implemented in the Netherlands. 
Scalability:  Coordination on infrastructure development or other focal points for 
decarbonisation can be scaled up by allowing more stakeholders to participate to 
discussions. 
Speed of implementation: The time required for consultation between industry and 
government depends on the type of engagement activity, the complexity of the discussed 
policies and the willingness of the industry sector to contribute to have consultation. 
Replicability: This measure could be replicated in other MSs and in other sectors to 
cover issues related to regulated processes. This would require cooperation between 
industry, experts and regulatory bodies. 

Details 
affecting 
delivery 

Source 
(impacts): 

None 

As above. 

Table 6-65: Regulatory sandboxes for low-carbon innovation 

Name of 
the 
supporting 
measure: 

Short 
description 

Regulatory sandboxes for low-carbon innovation 

The Netherlands started testing sandboxes in 2015. Over a four-year period, 18 projects were 
awarded a sandbox. The projects included in the programme could benefit from a ten-year 
exemption to “normal regulation”. Additionally, regulatory sandboxes have been reserved for 

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Name of 
the 
supporting 
measure: 

Regulatory sandboxes for low-carbon innovation 

small  players  in  the  energy  sector,  including  energy  communities  and  homeowner 
associations.  

Geographic
al scope 

NL 

Category/ty
pe 
measure 

of 

Rationale 

Regulation & standards 

Despite not directly implying changes to regulated processes, these programmes provide an 
example  on  innovation  can  be  promoted  by  allowing  specific  innovative  projects  to  reach 
latest stages of development in a protected environment. 

Source 

https://www.ofgem.gov.uk/energy-regulation-
sandbox#:~:text=What%20is%20a%20Regulatory%20Sandbox,of%20the%20usual%20rule
s%20applying. 

https://fsr.eui.eu/regulatory-sandboxes-in-the-energy-sector-the-what-the-who-and-the-how/ 

Affected 
Stakeholder 

SMEs 

Effectiveness: The sandbox fosters closer collaboration between innovators, regulatory 
authorities, and industry stakeholders, helping to ensure that innovations meet regulatory 
requirements. This collaboration enhances trust between the private and public sectors and 
informs future policymaking, leading to more adaptive and forward-looking regulations. 
Cost (social and public): No specific cost information was found for this programme. 
However, the public agencies that managed the initiative incurred costs related to staff to 
review, evaluate and monitor sandbox projects, and manage the initiative. 
Context: This measure has been implemented in the Netherlands, where other initiatives 
are in place to foster innovation and increase coordination between industry players and 
regulators. 
Scalability:  The program can be scaled up by increasing the number of admitted projects, 
for example, by including a broader range of innovators. 
Speed of implementation: The time required for consultation between industry and 
government depends on the type of engagement activity, the complexity of the discussed 
policies and the willingness of the industry sector to contribute to have consultation. 
Replicability: This measure could be replicated in other MSs and in other sectors. 

None 

https://www.ofgem.gov.uk/energy-regulation-
sandbox#:~:text=What%20is%20a%20Regulatory%20Sandbox,of%20the%20usual%20rule
s%20applying. 

https://fsr.eui.eu/regulatory-sandboxes-in-the-energy-sector-the-what-the-who-and-the-how/ 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

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Table 6-66 Fiscal incentive to fuel switching 

Name of 
the 
supporting 
measure: 

Short 
description 

Fiscal incentives to fuel switching 

Germany's  Carbon  Contracts  for  Difference  (CCfD)  program  is  designed  to  incentivise 
energy-intensive industries to adopt climate-friendly production processes by offsetting the 
additional  costs  associated  with  these  technologies.  This  mechanism  provides  financial 
stability, encouraging investments in sustainable practices. 

Geographic
al scope 

DE 

Category/ty
pe 
measure 

of 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Financing - grants/subsidies 

If the compliance costs cannot be lowered or eased directly, additional costs can be covered 
with a subsidy to make the fuel switching competitive against the actual fuel. 

FR - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/5168 

DE -  https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4676 

SMEs, Large Companies, Energy Suppliers 

Effectiveness: These measures can  effectively support companies by reducing the costs 
associated to the transition to cleaner fuels, despite not targeting regulatory costs directly. 
Benefits:  This  programme  aims  to  incentivise  the  transition  towards  a  more  sustainable 
industry. The projects that obtained financial support in the first bidding round could deliver 
17 Mt CO2e emissions reduction over the next 15 years. 
Cost (social and public): (DE) The budget for the first round of auctions is set to EUR 4 
billion. 
Context:  
Scalability: (DE) the project is directed to Large and SMEs emitting at least 10 ktCO2 per 
year.  The  measure  could  potentially  be  expanded  to  include  firms  below  the  current 
threshold, conditional to providing the necessary funding.  
Speed of implementation: This measure requires administrative infrastructure to set up the 
financing mechanism. 
Replicability: high replicability possible, depending on available funding. 

Details 
affecting 
delivery 

None 

Source 
(impacts): 

FR - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/5168 
DE - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4676 
https://www.klimaschutzvertraege.info/en/home 
https://www.klimaschutzvertraege.info/lw_resource/datapool/systemfiles/agent/ewbpublicati
ons/f7531bfd-eb98-11ee-8b39-a0369fe1b6c9/live/document/2403_EN_BMWK-
FAQ_Klimaschutzvertraege.pdf 

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Table 6-67 Heat Fund 

Name of the 
supporting 
measure: 

Heat Fund 

Introduced  in  2008,  this  fund  supports  projects  for  the  production  of  heat  for  renewable 
energies and energy recovery. 

The activities include financial support for installation costs, feasibility studies and technical 
support. 

Short 
description 

Several types of projects are supported, namely: 

•  Biomass installations producing at least 1,200 MWh/year. 
•  Solar Thermal installations for hot water production. 
•  Geothermal heat pumps. 
•  Biogas methanisation installations for heat networks. 
•  Heat networks fuelled by at least 50% RE&R. 
•  Cold networks in overseas territories. 
•  Waste heat recovery. 

Geographical 
scope 

FR 

Category/type 
of measure 

Financing - grants/subsidies, Awareness, technical support and training 

Rationale 

If  the  compliance  costs  cannot  be  lowered  or  eased  directly,  additional  costs  can  be 
covered with a subsidy to make the fuel switching competitive against the actual fuel. 

Source 

Affected 
Stakeholder 

https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4430 

SMEs. Large companies, Energy suppliers 

Effectiveness: The programme creates incentives for enterprises to invest in renewable 
heating. 78% of beneficiaries stated that, without the subsidy, no investment would have 
been made, confirming that subsidies can offset transition costs and support the 
transition. 
Benefits: During the period 2009-2022, it has supported more than 7,145 installations, 
generating 42.6 TWh/year of additional energy production. Ex-ante avoided emissions are 
equal to 7.6 MtCO2 per year, between 2025 and 2034, declining to 4.2 MtCO2 from 2035 
onwards. 
Cost (social and public): The financial contribution from the government was EUR 520 
million in 2022. 

Context: 
Scalability: could include other fuel switching investments.  
Speed of implementation: This measure requires the development of administrative 
infrastructure to evaluate projects and administer funds allocation. 
Replicability: high replicability possible, depending on available funding. 

As above. 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

173 

 
 
 
 
 
 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

Table 6-68 Infrastructure development for alternative fuel 

Name of the 
supporting 
measure: 

Short 
description 

Infrastructure development for alternative fuel 

HR - Equipping the transport gas system for the future possibility of transporting up to 100% 
hydrogen. This measure includes the project of planning and reconstruction of gas nodes 
and safety and measuring equipment for the reception and addition of decarbonised gases 
to  the  gas  transmission  system.  It  includes  the  development  of  a  'smart  gas  network' 
including advanced digital systems and components, control systems, sensor technologies, 
gas  flow  and  quality  management  devices  (compressors,  gas  flow  control  kits, 
reconstruction and chromatography equipment, etc.), to enable interactive and intelligent 
monitoring,  measurement,  quality  control  and  management  of  the  reception  and 
transmission  of  decarbonised  gases.  The  implementation  of  the  project  will  allow  the 
reception  and  mixing  of  decarbonised  gases  (biomethane  and  hydrogen)  into  the  gas 
transmission  system,  which  will  reduce  greenhouse  gas  emissions  and  facilitate  the 
transition to a transmission system that will transport 100% of decarbonised gases in the 
future. The project will contribute to achieving the objectives set by the European Green 
Deal.  The  implementation  of  this  measure  is  expected  in  the  next  10-15  years,  and 
according  to  the  first  indicative  estimates,  the  required  investments  amount  to  EUR  54 
million. 

Geographical 
scope 

HR 

Category/type 
of measure 

Rationale 

Source 

Affected 
Stakeholder 

Expected 
impacts 

Details 
affecting 
delivery 

Source 
(impacts): 

Financing - grants/subsidies 

Regulatory  standards  require  to  be 
fulfilled.  The  compliance  demand  additional 
investments. Addressing investment costs as early as possible can ease the fuel switching. 

HR - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/5375 

SMEs, Large companies, Energy Suppliers. 

Effectiveness: (HR) the measure will facilitate access to sustainable fuel for industrial 
firms and is expected to interact with the broader national strategy for the development of 
a hydrogen network.  

Benefits: 
Cost (social and public): (HR) The programme is expected to require EUR 54 million in 
investments. 

Context: 
Scalability: high scalability, especially in countries/regions where no infrastructure for 
hydrogen exists. Scalability will depend on available funding.  
Speed of implementation: (HR) The project itself is expected to last 10-15 years.  
Replicability: high replicability possible, depending on available funding and development 
potential for energy infrastructure. 

This measure involves the development of decarbonized gas infrastructure to support the 
transition to a more sustainable economy. While the project is planned over a 10–15-year 
timeframe,  it  could  be  implemented  in  different  phases  to  accelerate  its  impact  within  a 
shorter time horizon. 

HR - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/5375 
NL - https://www.measures.odyssee-mure.eu/energy-efficiency-policies-
database.html#/measures/4644 

174 

 
 
 
 
 
A STUDY OF MEASURES WHICH SUPPORT DECARBONISATION IN THE SECTORS COVERED BY ETS2 Report 

Name of the 
supporting 
measure: 

Infrastructure development for alternative fuel 

https://cordence.com/insights/the-transition-of-energy-intensive-industries-and-the-role-of-
public-private-partnerships/ 

175 

 
 
 
 
 
 
E: info@ricardo.com  

W: www.ricardo.com  

 
 
 
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