As expected, on Tuesday 18 April MEPs adopted by a large majority (521 votes in favour, 75 against and 43 abstentions) the outlines of the Social Climate Fund, which will aim to cushion the costs of implementing the ETS2 system extended to buildings and road transport from 2026.
The fund, which is being promoted by EPP MEPs David Casa (Maltese) and Esther de Lange (Dutch), will be financed in the first year by ETS1 and then by ETS2 from 2027. The sum over 6 years will be €65 billion, with 25% national co-financing, bringing it to €86.7 billion.
In a debate on Monday evening, the Dutch MEP said she was pleased to have been able to maintain the share of national co-financing that the Council of the EU wanted to abolish. The Fund, initially financed by external revenues, will also be made permanent in the future multi-annual budgetary framework, she also stressed.
The size of the Fund will however be reduced to €54.6 billion in the event of a postponement of ETS2 to 2028, as foreseen in the emergency brake.
The Fund provides for temporary direct income support measures to address rising road transport and heating fuel prices and support for long-term structural investments such as building renovation or decarbonisation solutions and the integration of renewable energy.
Link to the adopted text: https://aeur.eu/f/6cy (Original version in French by Solenn Paulic)