Green Solidarity: Guiding principles for a truly just Social Climate Fund

Briefing    |    6 November 2024

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The Social Climate Fund (SCF) was established by the EU to help alleviate the negative social and economic impacts of the new Emissions Trading System (ETS2), which introduces a carbon price on transport and heating. This initiative is designed to support low-income households, especially those most vulnerable to energy and transport poverty, as well as small businesses that will be most impacted once the ETS2 will come in force.  

Before accessing the funds as of 2026, Member States must submit National Social Climate Plans to the European Commission by mid-2025. This briefing, written by a coalition of social and environmental NGOs, offers recommendations for national Managing Authorities on designing effective National Social Climate Plans. Using lessons learned from the existing funding streams as well as the drafting process of National Energy and Climate Plans (NECPs) across the EU, the briefing provides guidance on: 

• Conducting inclusive and meaningful public consultations 

• Implementing structural solutions to combat energy poverty and reduce fossil fuel dependency  

• Mobilising additional funds beyond the mandatory minimum of 25% co-financing rate 

Full briefing available for download.