A new EU resource called the Social Climate Fund is just sitting on the shelf. This fund will support vulnerable households with  €87 billion to help pay for a clean and socially just energy transition away from fossil fuels.

The fuels we use to fill up our cars and heat our homes are responsible for 40% of the EU’s total greenhouse gas emissions.

But a new EU policy called ETS2 that will apply a price on climate pollution from road transport and buildings starting in 2028 will help tackle this problem.

The money it generates will be used to make clean energy options more affordable, including through the Social Climate Fund. It is the first EU fund developed with the explicit purpose of alleviating potential energy and transport poverty occurring from the transition towards clean mobility, buildings and housing

However, many national governments are running heavily behind schedule to mobilise the fund. A deadline of 30 June 2025 was set for governments to send their Social Climate Plans to the EU to gain access to the fund, but almost all governments failed to do so on time.

At the same time the ETS2 scheme was pushed back a year from a 2027 start to 2028, among calls to water down, delay or even suspend the system.