Vulnerable households at risk: Central and eastern European countries struggle to finalise national social climate plans

Despite regional challenges, the Estonian and Polish governments are ahead of the curve, having already published their draft plans. The Estonian plan prioritises the housing sector, dedicating 76 per cent of its Social Climate Fund allocation to building renovations and social housing, with 21 per cent going to public and demand-based transport services. Poland’s draft plan dedicates up to 37 per cent of its allocation to direct income support, 39 per cent to housing measures, and 21 per cent to public transport. 

Governments in Romania and Latvia are showing signs of good practice through early stakeholder engagement and transparency. Romania’s plan is expected to include support for heat pumps, building insulation, and energy communities, while Latvia’s government is exploring, among other interventions, renovation of social housing, demand-based public transport, electric vehicle and bike leasing schemes. The Slovakian government is set to prioritise investments in energy efficiency and public transport, with the largest allocations going to family house renovations, social housing and crisis facility upgrades, and apartment renovations. 

But elsewhere, red flags are flying. The governments of Hungary and Bulgaria have fallen silent, with no draft plans, no structured public consultations, and unclear investment strategies. Likewise, the Italian government has yet to reveal any details on its plan, leaving civil society and municipalities in the dark.  

On the critical issues of energy communities and decentralised solutions, only the Romanian and Polish governments have shown strong commitment. Poland’s government is set to launch a pilot programme aimed at establishing around 80 municipal- and civil society-led energy communities. Encouragingly, the introduction of these measures – absent from the initial draft plan – is the direct result of recommendations by Polish civil society. 

Overall, however, the trend is for a lack of transparency and preparedness. This risks delaying support to the very people who need it most, with low-income families in parts of eastern Europe already spending up to 14 per cent of their income on energy alone. 

While there is no one-size-fits-all solution, a set of overarching recommendations can help guide Member State governments towards more effective and equitable national social climate plans – plans that safeguard vulnerable households, foster public trust, and unlock the significant potential of the clean energy transformation. In addition, governments must institutionalise structured and meaningful stakeholder engagement, increase local and regional capacities, and ensure that resources reach the right beneficiaries in line with the EU’s long-term climate, environmental, and social goals. 

Just as Member State governments are expected to finalise their plans, the transposition of the EU’s upcoming Emissions Trading System (ETS2) is set to begin, with emissions reporting starting in 2025. Yet countries like the Czech Republic, Slovakia, Bulgaria, Poland, and Estonia are openly pushing for postponement. But delaying the rollout of ETS2 without delivering robust national social climate plans will leave millions without a safety net and jeopardise Europe’s climate goals. Because ultimately ETS2 isn’t just about putting a price on carbon – it represents a commitment to leave no one behind. Only by aligning ETS2 with the Social Climate Fund can we turn this commitment into reality – ensuring that social protection keeps pace with Europe’s climate ambition. 

Anelia Stefanova, strategic area leader for energy transformation at CEE Bankwatch Network: ‘National social climate plans are the clearest indicator of governments’ intent to deliver on the promise of a just transition. Understanding who is involved in shaping the plans, how they are developed, and who ultimately benefits is key to determining whether the Social Climate Fund will bring justice, social security and well-being – or become a missed opportunity. While some governments are moving forward, others are treating the deadline as a distant suggestion. Meanwhile, vulnerable households – especially in central and eastern Europe – are already feeling the pressure of high energy prices. The EU’s climate ambition and its funding instruments must go hand in hand with social justice. We need action, clarity, and honesty. And we need it now.’ 

Maike Kirsch, policy advisor at E3G: ‘National social climate plans are a crucial new instrument to ensure that the benefits of Europe’s emerging clean power system reach those who need them most. Targeted and inclusive support is essential for the energy transition to help reduce existing inequalities and lack of public trust. By defining vulnerability more effectively, investing in structural solutions, and scaling proven measures, Member States can make the Social Climate Fund a game-changer. With the right focus and political will, the successful development of the plans is well within reach – cutting emissions, lowering bills, and strengthening support for a fair and competitive energy future.’ 

Read the full report ‘Climbing together: Is the Social Climate Fund working for those who need it most?’