Brussels, 5 March 2025
The EU Commission published two guidance documents on the Social Climate Plans, and the application of the ‘Do No Significant Harm’ (DNSH) principle to the Social Climate Fund (SCF). Both documents will help Member States develop their national Social Climate Plans and submit them by June this year.
The SCF provides funding to address the social impacts of the new Emissions Trading System for buildings and road transport (ETS2) on vulnerable households, micro-enterprises, and transport users. Operating from 2026 to 2032, it will provide €65 billion to Member States. Together with the Member States’ contributions (at least 25% of the costs of their plans), the Fund will mobilise €86.7 billion.
The Social Climate Plans will outline the investment needs and concrete projects, estimated costs, as well as the reform measures, milestones, and targets for achieving them. The first guidance clarifies notably the eligibility criteria for measures and investments, the identification of the target groups, and gives clarity regarding the drafting and submission and the Commission’s assessment.
Drawing from its prior public consultation, the Commission published a second guidance document, reducing administrative burdens and providing further clarity on the DNSH principle application.
Source – EU Commission