Member States remain confused and hesitant about the Social Climate Fund (SCF), both in terms of how it will be financed, its size, and how it will relate to other initiatives in the ‘Fit for 55’ package on emissions reduction and its impact on the economy and society, according to a progress report by the Slovenian Presidency of the Council of the EU published on Monday 6 December.
According to the report, “the proposal received mixed reactions overall” from national delegations (see EUROPE 12800/33) during the first discussions held on the regulation’s general and fiscal aspects in the Ad Hoc Working Group on the Social Climate Fund (AHWP SCF).
On the budget, a majority of delegations asked questions about the size of the budget (25% of the funding comes from ETS road and building funds for a total budget of €72.2 billion). They asked for additional explanations, with several delegations questioning the size of the Fund’s budget more specifically.
They criticised the co-financing of 50% of the total cost of social plans for the climate, as well as the existence of a single threshold, which is often considered too high. The allocation method and its life span over two budget cycles were also discussed.
Several delegations asked for clarification on the articulation with the other proposals in the package and regretted the absence of an independent impact assessment.
Scope and governance
The overlap with other EU instruments and funds (particularly the Cohesion Policy and the Recovery and Resilience Facility) and the legal basis of the regulation were interrogated. Questions were also raised about the implementation of the ‘do no significant harm’ principle, as well as the direct management of the Social Climate Fund, with some delegations preferring shared management.
Several delegations stressed that their final positions would be known once they have assessed the decision on own resources and the modification of the Multiannual Financial Framework (MFF). The reopening of the MFF is indeed a concern for many Member States.
An article-by-article examination of the proposal will begin under the French Presidency of the EU Council.
In the European Parliament
In the European Parliament, the sharing of files between parliamentary committees and political groups has been finalised (see EUROPE 12846/27).
For more information: https://bit.ly/3dsBXpF (Original version in French by Pascal Hansens)