The European Parliament’s Committee on Economic and Monetary Affairs (ECON) maintained the link between the Social Climate Fund (SCF) and the ETS2 system, which extends emission allowances to the road transport and construction sectors, by adopting (41 votes in favour, 11 against and 5 abstentions) the report by German MEP Henrike Hahn (Greens/EFA) on Thursday 28 April.
Discussions between political groups crystallised around references to ETS2 (a real bone of contention within the European Parliament - see EUROPE 12913/29), a source told us. The reference was indeed maintained by MEPs, but with the clarification that the primary objective of the CSP was to mitigate the harmful effects of the ETS2 on the most vulnerable individuals and groups. In addition, MEPs set the entry into force of the Fund from 2024, de facto decoupling it from the entry into force of the ETS2 system, which should take place from 2025.
On the other hand, MEPs put the emphasis on long-term investments, setting a minimum of 70% of the national allocation for this type of expenditure. They are making direct aid conditional on long-term investments. The ECON Commission is calling for 60% of all direct expenditure support for households to go to women. Each national plan should include a gender impact assessment. (Original version in French by Pascal Hansens)