FEANTSA's Position on the Social Climate Fund: Social ambition, a must for the climate transition
In July 2021, the European Commission issued its proposal for a “Social Climate Fund”. This is part of the European Commission’s Fit for 55 package and of the European Green Deal. The proposed fund is to be financed through an extension of the European Emissions Trading System to cover buildings and road transport. The fund claims it will support vulnerable citizens through both long-term investment to decarbonise road transport and building sectors; and through temporary direct income support.
For FEANTSA, the European Commission Green deal and its Fit for 55 package could provide an opportunity to support poor and vulnerable households in the energy transition and in doing so address housing exclusion. However, in their current form, these initiatives do not clearly establish the necessary instruments and safeguards to ensure benefit to poor and vulnerable households. The SCF follows the same flawed pattern: a social climate fund is absolutely necessary to ensure a fair transition, but the fund as it is currently proposed is insufficient and based on a funding source that would contribute to increase energy poverty and inequalities.