On Thursday, 9 February, the European Parliament’s Committee on the Environment and Committee on Employment and Social Affairs approved—by 86 votes to 10 with 12 abstentions—the political agreement on the Social Climate Fund that was reached with the EU Council at the end of December (see EUROPE 13097/17).
The Social Climate Fund is expected to handle the socioeconomic impacts of the new carbon emissions trading system for road transport and buildings (ETS 2) entering into force in 2027. It will start in 2026, funded by ETS 1; then, it will be funded by ETS 2 starting in 2027. For six years, it will have a total of €65 billion with 25% in national co-financing. The [Social Climate] Fund will be reduced to €54.6 billion in the event ETS 2 is postponed until 2028.
In addition, the regulation establishing a Social Climate Fund introduces, for the first time, definitions of energy poverty and transport poverty.
‘Transport poverty’ refers to situations where individuals and households are unable to meet or have difficulty meeting the costs of private or public transport or where they lack or have limited access to the transport they need to access essential socioeconomic services and activities. In general, it may be caused by “low income, high fuel expenditures, [and/or a] lack of affordable or accessible private or public transport”. In particular, it can affect “individuals and households in rural, insular, peripheral, mountainous, remote and less accessible areas”.
‘Energy poverty’ refers to a situation where a household lacks access to the essential energy services that underpin a decent standard of living and health, including adequate warmth, lighting, and energy to power appliances.
Member States approved this agreement on 8 February (see EUROPE 13117/15).
Link to the agreement: https://aeur.eu/f/59x (Original version in French by Solenn Paulic)