This week, we are moving from analysis to action. Here are five concrete steps, based on official recommendations, that every homeowner and property manager can take to prepare their property for the new reality of carbon pricing.
Step 1: Conduct Assessments and Audits
Before you can make effective improvements, you need to understand where your building is losing the most energy. The essential first step is to conduct an energy audit to identify high-emission areas. This assessment will pinpoint weaknesses in your building’s envelope, such as poor insulation or an inefficient heating system, giving you a clear roadmap for improvements. For those managing larger portfolios, this is also the time to review your properties for compliance with related EU directives, like the Energy Performance of Buildings Directive (EPBD).
The foundation of any good plan is accurate data. Understanding your building's current energy performance is the critical first step, and this requires a reliable analysis of its unique characteristics.
Step 2: Invest in Efficiency and Renewables
With an audit in hand, you can make targeted investments that will deliver the most significant impact. Prioritise building renovations that directly cut heating emissions, such as improving insulation, upgrading to LED lighting, installing modern heat pumps, or adding solar installations. The most strategic approach is to frontload these investments before 2027. By using loans or available subsidies to complete upgrades early, you can avoid the impact of higher costs once the carbon price is in full effect.
Step 3: Access Financial Support
You do not have to fund these upgrades entirely on your own. As we discussed in a previous article, the EU is launching the Social Climate Fund (SCF), which will start providing support from 2026. This fund is designed to offer grants, low-cost loans, and leasing schemes for everything from home energy upgrades to electric vehicles and e-bikes. To take advantage of these programmes, monitor your country’s national Social Climate Plan to learn what specific aid will be available to you.
Step 4: Implement Behavioural and Operational Changes
Not every impactful change requires a large capital investment. Simple adjustments to daily habits and operations can also yield significant energy and cost savings. For homeowners, this can be as simple as reducing thermostat settings or choosing to carpool or use public transport more often. For property managers, this could involve training staff on emissions reduction practices or integrating ‘green clauses’ into tenant leases to encourage energy-conscious behaviour.
Step 5: Align Your Plan with the Timeline
Finally, your preparation must be aligned with the official ETS2 schedule. With the monitoring phase having started in 2025, preparations should begin immediately. Stay informed through official EU and national government updates to adapt your plan if the system’s start is delayed to 2028 due to high energy prices. Acting now ensures you are well-positioned before the financial impacts are fully felt.
Preparing for ETS2 is a manageable process when broken down into these clear steps. By taking action now, you can turn a regulatory challenge into an opportunity for long-term savings and sustainability.
With a plan in place, the next question is which investments to prioritise. Next week, we’ll compare the most common retrofitting options, from insulation to solar panels, to help you understand where to start.
