The second negotiation meeting between the European Parliament and the Czech Presidency of the Council of the EU only allowed for “mixed progress”, summarised the co-rapporteur on the dossier, David Casa (EPP, Maltese), on Wednesday 30 November in the European Parliament’s Employment Committee.
On direct income support, i.e. direct support measures for the most precarious households, the MEP noted progress and expressed confidence that the European Parliament’s position on this point would be well taken into account, but he was more pessimistic about the rule on co-financing national ‘Climate’ social plans, which the EU Council had completely abolished in June.
The budgetary architecture of the Fund remains another point to be clarified, as the European Parliament is also very cautious about the ongoing discussions on the ETS2, which the EU Council and the Commission want to extend to include households.
On this related subject of the ETS2, which is supposed to finance part of the ‘Social Climate Fund’, and its potential effect on households, the Commission had submitted new proposals for ‘vouchers’ for energy and transport services ahead of this meeting. But this point - considered important because it concerns the extension of ETS2 to households and thus the extent of the need for the SCF - was not discussed until the very end of the meeting.
The Commission has been asked to present its views again in the run-up to the next trilogue, which is scheduled for 16 December and could last through the weekend before Christmas. The Czech Presidency of the EU Council would like to reach an agreement before the end of the year. On Wednesday, the Maltese rapporteur also said he was ready to do whatever it takes, but within the mandate of the European Parliament, which has clearly rejected the extension of ETS2 to households.
How vouchers work
In a note to the co-legislators, the Commission explained earlier this week how these vouchers would offset the costs of the ETS2 for basic household heating and road transport fuel needs.
“The vouchers would be equivalent to a discount on the carbon price and should target the (equivalent of) basic heating and basic road transport fuel needs for households, at least up to a certain household income level”, explains the Commission.
Member States would be required to include such vouchers in their social climate plans. However, they would define the share of Social Climate Fund (SCF) support available for vouchers, the eligible households and the potential uses of the voucher.
Ideally, the vouchers could be used to purchase goods and services that save energy or promote sustainable mobility, but also direct financial compensation or income support.
Link to the Commission’s non-paper: https://aeur.eu/f/4dj (Original version in French by Solenn Paulic)