The postponement by one year of ETS 2 – the new emissions trading system for transport and space heating – agreed on Wednesday, 5 November, by the environment ministers of the EU Member States (see other news), will have no impact on the Social Climate Fund (SCF) (see EUROPE 13169/41).
The funds for this mechanism, designed to cushion the social impact of extending the ETS, have already been “secured”, said Climate Commissioner Wopke Hoekstra.
ETS 1 was already intended to fund the first year of the SCF, starting in 2026, so it should simply continue funding it for another year, according to sources. And the scenario has already been planned for 2023.
A maximum of €65 billion is expected to be made available to implement the Fund for the 2026-2032 period (with 25% national co-financing, this will rise to €86.7 billion). “If the existing Emissions Trading System (...) is postponed until 2028”, the Fund will be reduced to €54.6 billion, according to the agreement approved by the co-legislators in April 2023.
The SCF will support both structural investments and direct aid to households.
Link to the SCF: https://aeur.eu/f/6j4 (Original version in French by Solenn Paulic)