Climbing together: Is the Social Climate Fund working for those who need it most?

Report    |    13 June 2025

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The European Union’s commitment to cut greenhouse gas emissions by at least 55 per cent by 2030 and reach climate neutrality by 2050 is driving a far-reaching transformation across all sectors – most notably in energy. A key element of the EU’s Fit for 55 package is the forthcoming extension of the EU Emissions Trading System (ETS2) to cover buildings and road transport.

To cushion the social and economic impacts of this transition – particularly for vulnerable households and transport users – the EU has established the Social Climate Fund. Financed through revenues from ETS2, the fund is expected to mobilise at least EUR 86.7 billion in public investment between 2026 and 2032.

This report assesses the quality of stakeholder participation and the design of national social climate plans in eight countries: Bulgaria, Estonia, Hungary, Italy, Latvia, Poland, Romania, and Slovakia. It identifies both risks and examples of good practice, offering an early insight into the strengths and weaknesses of national approaches. The aim is to help improve the quality of national spending plans and to inform ongoing negotiations for the next EU budget.

This publication is also available in Bulgarian.