The Czech proposal for the Social Climate Plan represents a key instrument for mitigating the social impacts of the introduction of the ETS2 system, which is set to extend carbon pricing to building heating and road transport from 2028.

The plan rightly emphasises investments in energy efficiency, housing renovations, and the development of public transport, thereby addressing the structural causes of energy and transport poverty.

At the same time, however, it reveals some of its weaknesses—particularly the absence of direct short-term support for the most vulnerable households and insufficient justification for certain investment priorities.

The analysis shows that without the addition of effective compensation mechanisms and a stronger role for municipalities, there is a risk that the otherwise valuable plan will fail to achieve its main objective: ensuring a socially just transition towards a low-carbon economy.