Why adopting the Social Climate Fund is the right choice for the EU
(Transport and Environment, 18 Apr 2023) The Social Climate Fund represents a milestone towards a more systematic integration of a social dimension into EU climate policies.
The Social Climate Fund (SCF) is the first EU Fund specifically dedicated to provide financial support to vulnerable households, transport users and micro-enterprises in the transition towards sustainable mobility and energy consumption in buildings. Its adoption represents a milestone towards a more systematic integration of a social dimension into EU climate policies, even as some weak points remain.
The Fund’s spending rules strike the right balance between financing structural investments and providing temporary direct income support to households in need, as a new carbon price is introduced in 2027 by the new ETS for road transport and buildings (ETS2). The investments will enable vulnerable citizens to renovate their homes, to adopt energy efficient technologies, and to access renewable energy and sustainable transport modes. This will reduce their dependence on fossil fuels in the medium to long-term, while direct income support will mitigate potential negative effects in the short-term.
Transport and Environment, 18 Apr 2023: Why adopting the Social Climate Fund is the right choice for the EU