Social Climate Plans provide push for just transition in the European Union – think tank
Clean Energy Wire
Efforts by EU member states to draft mandated so-called Social Climate Plans have provided crucial impetus for a just transition towards climate neutrality, think tank Zukunft KlimaSozial said in an assessment of available plans and drafts. Germany has not yet presented its own.
“The plans and proposals submitted contain new and creative ideas from which Germany can learn, such as mobility vouchers or social fares on public transport for lower-income households, targeted funding schemes for bicycles, or renovation grants for social welfare facilities,” the think tank said.
The national Social Climate Plans are meant to detail financial support to vulnerable households during the energy transition. The EU instrument aims to protect low-income households as the bloc introduces a carbon price for fossil fuels in buildings and transport from 2028. Member states must submit the national plans to receive EU funding from the Social Climate Fund for support measures, but most countries missed last year's 30 June deadline and have yet to present their plans, including Germany. From 2026 to 2032, the fund and national governments will provide at least 86.7 billion euros.
Until now, just eight countries have submitted a plan, and only the plans from Sweden and Lithuania have been adopted. A further nine draft plans are public, varying in scope and how up to date they are, Zukunft KlimaSozial said. The assessed 17 plans together account for 60 billion euros, mainly earmarked for investment measures, the researchers highlighted. A large proportion of the funds will go towards targeted renovation support for the building sector, as well as towards the expansion of transport infrastructure in disadvantaged regions. Some countries are planning direct payments to households, such as Poland.
The EU has decided to put a price on emissions from fossil fuels that people use to heat their homes or drive their cars to work – a move that throws climate policy and its financial implications into citizens’ daily lives. The new Emissions Trading System (ETS 2) – meant to boost the shift to climate-friendly technologies like EVs or heat pumps – is set to become fully operational across the EU on 1 January 2028. However, opposition to the system has grown in recent months and years, as policymakers worry about public backlash if prices rise significantly. This makes social climate measures to support low-income households all the more important.