Media advisory: Social Climate Plans due by 30 June

Brussels, 26 June 2025, for immediate release – EU Member States should submit their Social Climate Plans to the European Commission by 30 June next week. This is a pivotal moment in preparing for the launch of the EU’s new carbon pricing system for buildings and road transport (ETS2), set to start in 2027. READ OUR MEDIA BRIEFING With the deadline just days away, no Social Climate Plans are yet publicly available on the European Commission’s website. CAN Europe urges governments to ensure their submissions are inclusive, fair, and developed with meaningful input from those most likely affected. These social plans are essential to unlocking financial support from the Social Climate Fund, designed to shield vulnerable groups, such as households in energy and transport poverty, from rising heating and fuel costs. With energy and transport poverty on the rise, Member States must act swiftly to ensure their plans are robust, equitable, and participatory. “This is not just a bureaucratic deadline—it’s a turning point for the EU’s commitment to a socially just transition. Social Climate Plans must be shaped with the people they aim to support, or they risk missing the mark entirely,” said CAN Europe’s policy expert, Brigitta Bozso. Key facts: Social Climate Plans are required for Member States to access their share of the €65 billion Social Climate Fund (2026–2032). Plans must set out how Member States intend to support vulnerable parts of the population to alleviate energy poverty and access decarbonisation solutions—such as home energy renovations, heating decarbonisation and clean mobility access—while avoiding fossil fuel lock-ins. Many countries are falling behind in engaging civil society and planning participatory consultations, raising concerns about inclusivity and long-term impact. CAN Europe calls on governments to go beyond minimum requirements and leverage additional ETS2 revenues and national budgets for greater social and climate impact.

MEDIA BRIEFING

What are Social Climate Plans and why are they necessary for accessing the EU’s Social Climate Fund? Social Climate Plans (SCPs) are national-level strategies that EU Member States must submit to access their share of the €65 billion Social Climate Fund (SCF), available from revenues generated by the EU Emissions Trading System 2 (ETS2), from 2026 to 2032. These plans are intended to outline how governments will use these funds to support vulnerable households, micro-enterprises, and transport users affected by the introduction of ETS2, the new carbon pricing mechanism for buildings and road transport starting in 2027. Which countries are on track or falling behind in submitting their Social Climate Plans? As of now, no SCPs have been made publicly available on the European Commission’s website, therefore it is hard to track the status of the plans. Progress across Member States appears uneven, with some countries moving ahead more quickly than others, for example Poland, Romania, Greece, Portugal, the Netherlands, Bulgaria and Latvia organised public consultations (although Latvia proposed three working days for commenting on the draft), highlighting a broader issue of inconsistent momentum across the EU. An overall lack of early visibility and transparency was observed during the preparation of the Plans, as in many cases, there were also limited opportunities for public or civil society input during the drafting phase, similarly to the National Energy and Climate Plans process – pointing to a broader challenge in ensuring public access and participation in national climate planning. What risks do poorly designed or rushed SCPs pose for vulnerable communities? Poorly designed or rushed SCPs may fail to identify and respond to the real needs of the most affected households, particularly those experiencing energy and transport poverty. Without inclusive planning, these plans risk implementing one-size-fits-all measures that do not reach or benefit vulnerable groups. They may also direct funds toward short-term fixes or ineffective solutions, including fossil fuel-based systems, which could worsen social inequalities or entrench harmful energy dependencies. Additionally, lack of transparency and participation can undermine trust in the transition and limit community support for climate policies. What role do national budgets and ETS2 revenues play in complementing the Social Climate Fund? Member States are encouraged to add to the SCF with national co-financing (minimum 25%) and ETS2 revenues. All ETS2 revenue must be used for climate action, with a focus on measures that mitigate social impacts. However, the SCF alone will not be sufficient, and additional national and EU funds are essential. CAN Europe calls on governments to go beyond minimum co-financing, use ETS2 revenues to enhance SCPs, and ensure funds are directed to structural, empowering measures that tackle energy and transport poverty without locking in fossil fuel dependence. What risks do poorly designed or rushed SCPs pose for vulnerable communities? Poorly designed SCPs risk missing the needs of those most affected by ETS2. They may rely on one-size-fits-all approaches, fail to reach vulnerable households, or channel funds into ineffective or even harmful measures (e.g. fossil fuel lock-ins). This can undermine trust and weaken the social license for climate action. What would it mean to revise ETS2? In a recently emerged non-paper leaked by Politico, 16 countries are suggesting alterations to the upcoming ETS2. The countries acknowledge that “ETS2 will generate substantial revenues that will feed the Social Climate Fund and the Member States’ budgets and these revenues can be used to support vulnerable households in the transition, which will make them more resilient to rising CO2 prices”. However, some of the suggested revisions risk harming the environmental integrity of ETS2 as they would create additional allowances to produce greenhouse gas emissions. Since there are other ways to mitigate the prices of allowances or their effects on consumers, no proposal should be accepted that would add additional allowances (hence emissions) to the system. What are CAN Europe’s main recommendations for ensuring SCPs contribute to a socially just transition? CAN Europe calls for SCPs to be participatory, well-targeted, and aligned with other climate and social policies. They must avoid fossil fuel investments, include structural measures to reduce energy and transport poverty, and mobilise additional funding. Civil society must be engaged early and meaningfully in planning and implementation. What are the next steps after the 30 June submission deadline, and how will the European Commission assess and follow up on the plans? After submission, the European Commission will review the SCPs for compliance and effectiveness. Plans must be aligned with SCF objectives and principles, including the ‘Do No Significant Harm’ criteria. The assessment process should also ensure consistency with broader EU climate and social goals. contact: cristina.dascalu @ caneurope.org