The European Commission estimates that the budget of the Climate Action Social Facility should in principle correspond to 20% of the revenues expected from the inclusion of buildings and road transport in the scope of the EU Emissions Trading Directive, according to a draft of the regulation obtained by EUROPE on Monday 12 July.
The institution is set to present a comprehensive legislative arsenal on Wednesday 14 July to meet renewed ambitions to reduce emissions (see EUROPE 12759/2). Amongst a range of initiatives, it seeks to mitigate the social impact of integrating emissions trading for the buildings and road transport sectors.
Indeed, the Commission expects an increase in the price of fossil fuels, which will have a social impact on the most vulnerable households, SMEs, and micro-enterprises, especially in Member States with the lowest average income.
Therefore, the Commission intends to present, in addition to the Regulation on the mechanism, proposals to amend both the Regulation on the 2021-2027 Multiannual Financial Framework and the Own Resources Decision 2020/2053.
Thus, part of the revenue from the ETS for buildings and road transport will go to the EU budget. In a second phase, the mechanism should provide funds to member states for increasing the energy efficiency of buildings, retrofitting and decarbonising the heating and cooling of buildings—including the integration of energy from renewable sources—and for financing zero or “low emission” mobility and transport, it says.
The size of the financial envelope is not yet determined, according to our document, but its duration is: the mechanism should be operational from 2025 to 2032.
To consult the draft version: https://bit.ly/3xE0MHu (Original version in French by Pascal Hansens and Damien Genicot)