From 2027, fossil fuels will pay a tax.
The European Union has decided that the time has come for buildings to enter the climate fight directly. From 2027, the consumption of fossil fuels for energy in commercial buildings, offices and hospitals will carry a carbon price tag. In other words, every ton of CO₂ emitted by heating, cooling or thermal energy production will cost money – following the new ETS2 Emissions Trading System. It’s the polluter pays principle coming directly into the energy bill. If until now emitting CO₂ was an invisible “extra”, it will soon be an explicit cost. And no, unfortunately there will be no carbon promotions.
What is ETS2 and why does it matter?
ETS2 expands the European carbon market to include sectors that were previously outside the original ETS, which has covered industries and energy production since 2005. This time, buildings and transport have been included. The system operates on a cap-and-trade basis: the European Union sets an annual emissions ceiling and auctions off permits, each of which is equivalent to one tonne of CO₂. Fossil fuel suppliers must buy these permits to cover emissions resulting from the use of their products in buildings. In practice, this cost will be passed on to end users in the form of higher fuel prices. In other words, burning fossil fuels to keep buildings comfortable will become more expensive.
The target is clear: to reduce emissions from these sectors by around 42% by 2030 (compared to 2005). And unlike the original ETS, there will be no free allowances. Every tonne emitted will have to be paid for, sending a clear signal to speed up the decarbonization of buildings.
Impact on OPEX: carbon enters the bill
The impact will be felt by owners and managers of commercial buildings, offices and hospitals in the form of increased energy-related OPEX. Fuels such as natural gas and diesel will now include a ‘carbon premium’ in their prices. Put simply, if the cost of carbon is €50 per tonne of CO₂, then every 1,000 kg emitted will cost an additional €50. This equates to approximately €0.01 per kWh of natural gas consumed. While this may not seem like much, it quickly adds up to thousands of euros a year.
The price of carbon will vary. It is estimated that it will start at around 50 €/t in 2027 and could reach 100 €/t in 2030. This uncertainty will bring complexity to the financial planning of buildings.
Practical examples of impact
Office building: A 10,000 m² building consuming 750,000 kWh of gas per year emits around 150 tonnes of CO₂. At €50/t, this means an additional cost of €7,500 per year.
Hospital: A hospital unit consuming 8,000 MWh/year of fossil-based heat emits approximately 1,600 tCO₂. At €50/t, the additional bill is €80,000 per year – a considerable impact on the operating budget.
Preparing the GTC (SACE): time to fine-tune the systems
The most effective way to mitigate this new cost is to invest in energy efficiency straight away. And this is where SACE (Building Automation and Control System), or GTC (Building Management System) comes in as the brain of the building, monitoring and controlling HVAC, lighting and electricity. A fine-tuned building reduces waste without compromising comfort, making it a direct weapon against ETS2 costs.
Practical actions
Granular monitoring: Collect accurate fuel and energy consumption data in real time. Integrate additional meters, if necessary, and calculate the CO₂ emissions associated with each subsystem.
Optimising schedules: Adjust HVAC and lighting operation according to occupancy. It makes no sense to keep heating active in unoccupied areas after hours.
Demand control: Integrate presence and air quality sensors to modulate ventilation and air conditioning only when necessary.
Equipment tuning: Ensure that boilers, chillers and ventilation systems are working at their most efficient. Small adjustments can significantly reduce consumption.
Energy alarms: Programme the BMS to identify non-standard consumption or the simultaneous operation of redundant systems.
Team training: Well-trained technicians make the most of the BMS’s full potential. The gains often depend more on operational competence than on additional investment.
Investment planning: Use BMS data to justify future replacements, such as heat pumps, solar thermal panels or hybrid systems.
Buildings that install GTC are proven to reduce energy consumption
In practice, buildings that install GTC reduce their energy consumption by between 10 and 30 per cent through intelligent management alone. In more advanced cases, reductions of 40 to 50 per cent have already been seen in service buildings and hospitals. Every kWh saved means less CO₂ emitted and fewer euros paid in carbon. The GTC, which was once seen as a tool for comfort and efficiency, is now also becoming a financial shield against ETS2.
ETS2 will transform the landscape: buildings that rely heavily on fossil fuels will face mounting additional costs, while efficient, automated buildings will enjoy greater protection. Investing in automation and optimising the GTC is a low-risk, high-return measure: it saves energy, improves comfort, and lowers carbon bills. So, the question is simple: will you wait for your first inflated carbon bill, or start preparing your building’s ‘brain’ for the future today?
References
European Commission – ETS2: buildings, road transport and additional sectors
ICAP Carbon Action – EU Emissions Trading System for buildings and road transport (ETS2)
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