Europe is extending carbon pricing to home heating through ETS2, set for 2027. But without a serious renovation push and proper safeguards, the policy risks triggering political backlash. The article argues that pairing carbon pricing with the Social Climate Fund and targeting renovation at the worst-performing homes is essential for public support. Buildings account for about 40% of Europe's energy use, and millions of households live with poor indoor conditions. Research shows EU carbon pricing has been more regressive than assumed, and rising carbon prices have been linked to increased support for populist parties. The key is to make renovation funding reach those who need it most, not just those who can pay upfront.
