Can you separate ETS2 myth from fact?

Dilution doesn’t fix pollution: ETS2 must work for people and climate

The European Commission planted a carbon bomb in its proposal to reform the supply control mechanism within the EU’s carbon pricing scheme for road transport and buildings. EU decisionmakers meeting on June 10 must mitigate the damage of the proposal and take the chance to increase earmarked funding for vulnerable households in the energy transition

€85bn delayed: 19 EU countries still haven’t filed their social climate plans a year on
Jun 30, 2026

A civil society coalition launches public ‘Leave fossil fuels behind, not people!’ petition and demands member state action on the first anniversary of missed deadline to apply for Social Climate Fund financing

As Europe melts under an intense heatwave exacerbated by global warming, European Union member states are today (30 June 2026) a year late in submitting their crucial social climate plans required to unlock their share of the €86.7 billion Social Climate Fund

Designed to help EU citizens make the energy transition away from a volatile and polluting energy system dependent on fossil fuels, the SCF, which will be funded using revenue generated by the forthcoming carbon pricing scheme for road transport and buildings (ETS2), remains frozen in nearly all EU countries due to government inaction.

Only Lithuania and Sweden have received approval from the European Commission for their social climate plans, and as 19 EU national governments are yet to submit proposals €85.3 billion of the €86.7 billion pot remains unclaimed.

To mark this ‘Unhappy anniversary’, a coalition of leading civil society organisations – including Carbon Market Watch, the European Environmental Bureau, Climate Action Network Europe, REScoop.eu, CEE Bankwatch Network, Cool Heating Coalition, FEANSTA, the LIFE Effect project and national NGOs – have sent cards to environment ministries listing clear demands to get on with submitting their plans and unlock support to households in the energy transition. 

And EU citizens can make their voice heard too by telling policymakers that a just transition can’t wait in a public petition also launching today.

Unacceptable delay

“A one-year delay in submitting these plans is unacceptable. We are talking about billions for home renovations, heat pumps, affordable clean transport and income support for those who need it most. This means delaying initiatives that would improve the lives of millions of Europeans at a time of high energy costs driven by fossil fuel dependence. It is simply inexcusable”, Emma Wikström, Carbon Market Watch policy expert on EU carbon markets said.

“Many of the EU governments most vocal in delaying and undermining ETS2, the system set to put a price on transport and heating emissions in 2028, are also the ones furthest behind on their Social Climate Plans. Imagine if that energy had gone into the obvious: planning how to use precious ETS2 revenues to actually support people,” Alberto Vela, spokesperson at European Environmental Bureau said.

Get on with it

The anniversary card calls for EU governments to urgently submit strong social climate plans so that EU funds can start flowing to households, and to make use of the approved “Frontloading Facility” that would allow governments to start implementing some of their targeted support for households now, and not years down the road.

Finally, we urge policymakers to expand and extend the Social Climate Fund. The fund is a positive step towards tackling energy and transport poverty and supporting vulnerable households during the transition. 

However, it is capped at €86.7 billion and is insufficient considering that 41 million people across Europe today are unable to adequately heat their homes. Millions more live in housing or work in buildings that offer them poor shelter against extreme heat.

Leave no one behind

Today, 30 June, also marks the launch of an EU-wide public petition campaign that calls on governments to stop delaying carbon pricing and unlock funding for sustainable housing and transport.

The initiative calls on policymakers to accelerate measures that protect households from the volatility of fossil fuel prices and ensure that revenue generated by climate policies is used to support the most vulnerable citizens.

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