Description
The Social Climate Fund was created alongside the EU ETS2 for emissions from fuel combustion in buildings, road transport and additional sectors. It will provide EU Member States with dedicated funding so that the most affected vulnerable groups, such as households in energy or transport poverty, are directly supported, and not left behind during the green transition. With a focus on ensuring a fair transition to a low-carbon economy, the fund provides resources for Social Climate Plans, which may include measures that target vulnerable households, micro-enterprises, and transport users.
level of support
EU-wide
type of funding
Grants, Loans
Funding amount
The total budget for Social Climate Fund is around €85 billion. Project funding varies depending on project scope and size and target demographic.
Eligibility criteria
Open to EU member states, regional governments, public-private partnerships, and energy cooperatives focused on addressing energy poverty. Targeting vulnerable households, micro-enterprises, and transport users.
Application Process and Timeline
Proposals are submitted through National Social Climate Plans. Project proposals must demonstrate how they address social inequalities and ensure access to clean energy for vulnerable groups.
Evidence Of Success
EU Member States are currently drafting their National Social Climate Plans, overseeing >85bn euros in public social and climate investment.
Expert Opinion
Under Article 8 (1)(c) of Regulation (EU) 2023/955, the Social Climate Fund also supports energy community-related measures, promoting the involvement of citizens in local renewable energy projects. This allows energy communities to implement solutions that directly benefit low-income households and micro-enterprises, ensuring that everyone can participate in and benefit from the energy transition.
