Green Solidarity: Guiding Principles for a Truly Just Social Climate Fund

The Social Climate Fund is one of the EU’s financial mechanisms to counterbalance the negative socioeconomic effects of the extension of the Emissions Trading System that will apply to the transport and heating & cooling sectors. The Emissions Trading System price on carbon emissions will be challenging for low-income households and small businesses that might not be able to absorb the price increase or afford investments in renewable and electrified solutions, such as heat pumps or electric cars. The present briefing was written collectively by a coalition of social and environmental NGOs. It outlines a series of proposals for national Managing Authorities to prepare truly effective National Social Climate Plans. Drawing from concrete and applied examples from other major public funds and the National Energy and Climate Plans drafting process, the briefing provides advice on:

Inclusive and meaningful public consultation processes
Examples of effective structural solutions to tackle energy poverty and reduce dependency on fossil fuels (e.g., expanding green and social housing and promoting public transport)
Mobilising additional funds, beyond the mandatory minimum of 25% co-financing rate.

Download the briefing

Files:

https://caneurope.org/app/uploads/2026/02/eu-social-climate-fund-briefing.pdf