FIT FOR 55 FACTSHEET: Social Climate Fund

by Julia Wild

Not mentioned.	Definition for mobility poverty was added, referring to households that face high transport costs and/or limited access to affordable public or alternative modes of transport to meet essential socio-economic needs.
Not mentioned.	Focus on island Member States and outermost regions stating that an adequate minimum amount of funds shall be allocated for those territories, taking into account the particular challenges of those territories.
The implementation of the fund is linked to fulfilling financial interests of the Union and to respecting Union and national law.	Reminder to also respect fundamental values of the Treaty on European Union including the rule of law.
Not used.	Adds “Leave no one behind” in several points.
Each Member State shall submit to the Commission a Social Climate Plan (the Plan) addressing how they will address socio-economic challenges of the transition.	Added to the Social Climate Plan that local and regional level authorities, economic and social partners, and civil society organizations must be consulted for the plan.
The financial envelope for the implementation of the Fund for the period 2025-2027 shall be EUR 23 700 000 000 in current prices.	The financial envelope for the implementation of the Fund for the period [date of entry into force]-2027 shall be at least EUR 11 140 000 000 in current prices.
The financial envelope for the implementation of the Fund for the period 2028-2032 shall be EUR 48 500 000 000.	The financial envelope for the implementation of the Fund for the period 2028-2032 shall be established after a revision of this Regulation.
Member States shall contribute at least 50 % of the total estimated costs of their Plans.	Member States shall, depending on their GDP, contribute at least 60 % or 40 % of total costs for 2024-2027.
Not mentioned.	For every year that the Fund is active, the Commission shall provide a report to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the CO2 reductions arising from the investments in the energy efficiency of buildings, the integration of energy from renewable sources, and the granting of improved access to zero- and low-emission mobility and transport
Not mentioned to cap support.	Temporary direct income support measures (e.g. reduction in energy taxes and fees) are funded to tackle the increase in road transport and heating fuel prices. This support would be limited to a maximum of 40 % of the total estimated cost of each national plan for the period 2024-2027, and would be phased out by the end of 2032.

Commentary:

A majority in both the committee on the Environment, Public Health and Food Safety (ENVI) and the  Employment and Social Affairs (EMPL) committee voted in favour of the Commission’s proposal to establish a Social Climate Fund. The fund will benefit and support particularly affected and vulnerable households, micro-enterprises, and transport users in the context of the European Union’s transition towards climate neutrality by 2050. The fund would cover the renovation of buildings, renewable energy expansion and the transition to public transport, car-pooling and car-sharing, and self-powering modes such as biking. Measures to support citizens may include fiscal policy, vouchers, subsidies and zero-interest loans [1]. Not fixing the final amount of the fund provides flexibility to react to changes, which might be handy during these volatile times. 

References

[1] Social Climate Fund to help those most affected by energy and mobility poverty, European Parliament, https://www.europarl.europa.eu/news/en/press-room/20220516IPR29635/social-climate-fund-to-help-those-most-affected-by-energy-and-mobility-poverty [Accessed on 23 of May 2022]