EU carbon rules / Regulations / Social Climate Fund
In force Regulation Finance
Social Climate Fund
Supports a fair ETS2 transition (Article 33(3) amended by Energy Efficiency Directive 2023/1791)
- Reference
- Regulation (EU) 2023/955
- Key date
- from 2026
- Applies to
- Member States and vulnerable groups
01
Who the regulation applies to
This regulation applies to:
- Member States — must prepare and submit a Social Climate Plan (national plans submitted in June 2025 and approved in the first half of 2026), and receive funding from the Fund after approval
- Beneficiaries: vulnerable households, micro-enterprises and transport users affected by the inclusion of buildings and road transport in Directive 2003/87/EC (ETS2), in particular households unable to keep adequately warm, those unable to afford necessary transport, and small family businesses and micro-enterprises facing high energy or fuel costs
- The Fund operates from 2026, with an application period from 2026 to 2032 (ETS2 applies from 2028); about EUR 86 700 000 000 is available for 2026–2032 (in 2024 prices), and Member States must provide at least 25% national co-financing
The following provisions define its scope:
Article 1 — Subject matter and scope
This Regulation establishes the Social Climate Fund (the ‘Fund’) for the period from 2026 to 2032.
The Fund shall provide financial support to Member States for the measures and investments included in their Social Climate Plans (the ‘Plans’).
The measures and investments supported by the Fund shall benefit households, micro-enterprises and transport users, which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC, in particular households in energy poverty or households in transport poverty.
02
What the regulation requires
| Duty | Trigger | Evidence | Timing |
Mitigate the impact of ETS2 on households and small businesses
Member States use the Fund to support affected groups; companies may benefit indirectly. | Member States covered by ETS2 | Social climate plan | From 2028 (in step with ETS2) |
03
Key provisions
Article 1 — Social Climate Fund (2026–2032)
This Regulation establishes the Social Climate Fund (the 'Fund') for the period from 2026 to 2032. The Fund shall provide financial support to Member States for the measures and investments included in their Social Climate Plans (the 'Plans'). The measures and investments supported by the Fund shall benefit households, micro-enterprises and transport users, which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC ...
Article 4(1) — Social Climate Plans
Each Member State shall submit to the Commission its Plan. The Plan shall contain a coherent set of existing or new national measures and investments to address the impact of carbon pricing on vulnerable households, vulnerable micro-enterprises and vulnerable transport users in order to ensure affordable heating, cooling and mobility, while accompanying and accelerating necessary measures to meet the climate targets of the Union.