Race to the top: Reform and investment proposals for the Social Climate Plans
Report | 31 October 2025
EU Member States are now finalising their national social climate plans in order to access the EUR 86.7 billion Social Climate Fund from 1 January 2026. These plans aim to support vulnerable groups ahead of the introduction of the new EU emissions trading system for transport and heating (ETS2) in 2027.
This briefing provides practical suggestions for reforms and investments and assesses how different countries are involving stakeholders in the planning process. It also features a traffic-light assessment – based on four guiding principles and a list of criteria endorsed by civil society organisations – to compare national approaches and encourage more inclusive and effective planning.
This publication is also available in Hungarian.
Theme: Social Climate Fund, National Social Climate Plans, Emissions Trading System for transport and heating
Project: After recovery towards cohesion
Tags: EU funds | European Green Deal | energy transformation
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