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Written by Alex Wilson, Agnieszka Widuto and Marianna Pari (3rd edition, updated on 15.06.2023).
On 14 July 2021 the European Commission adopted the ‘fit for 55’ package, a set of legislative proposals to meet the new EU objective of a minimum 55 % reduction in greenhouse gas (GHG) emissions by 2030. The fit for 55 package is part of the Commission’s European Green Deal, which aims to set the EU firmly on the path towards net zero GHG emissions (climate neutrality) by 2050.
The fit for 55 package includes a regulation establishing a new social climate fund (SCF). The aim of the SCF is to help vulnerable households, micro-businesses and transport users counter the additional costs they may face when the EU Emissions Trading System (ETS) Directive is revised to cover these two sectors. The SCF should provide up to €65 billion in EU funding over the 2026-2032 period, mainly through ETS credits in the buildings and road transport sectors. Member States are expected to co-finance 25% of the total estimated cost of their social plans. The fund can be used for temporary direct income support, as well as investments in energy efficiency-related building renovations and sustainable transport.
Trilogue negotiations concluded on 18 December 2022 with a provisional agreement, which was then formally adopted by the Parliament and the Council in April 2023. The adopted text was published in the Official Journal of the EU on 16 May 2023 and entered into force on 5 June 2023.
Versions
- June 2023: Social climate fund: Fit for 55 package (3rd edition)
| Proposal for a Regulation of the European Parliament and of the Council establishing a Social Climate Fund |
| Committees responsible: | Environment, Public Health and Food Safety (ENVI) and Employment and Social Affairs (EMPL) | COM(2021) 568 14.7.2021 |
| Rapporteur: | David Casa and Esther De Lange (EPP) | 2021/0206(COD) |
| Shadow rapporteurs: | Klára Dobrev; Petar Vitanov (S&D); Ondřej Knotek ; Marie-Pierre Vedrenne (Renew); Sara Matthieu; Katrin Langensiepen (Greens/EFA); Dominique Bild; Joëlle Mélin (ID); Andrey Slabakov; Beata Szydło (ECR); Leila Chaibi; Petros Kokkalis (The Left) | Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’) |
| Procedure completed. | Regulation (EU) 2023/955 OJ L 130, 16.5.2023, pp. 1–51 |
Listen to policy podcast ‘Social climate fund: Fit for 55 package‘ on YouTube.
[…] Fund aims at helping regions most affected by the transition away from fossil fuels. Finally, the Social Climate Fund (part of the ‘fit for 55’ package) should go some way towards helping the most […]