The European Commission has issued new guidance to help EU Member States effectively implement the Social Climate Fund (SCF) and complete their Social Climate Plans (SCPs). Starting in 2026 and mobilising over €86bn, the Social Climate Fund has been created to ensure the transition to a greener economy is fair and leaves no one behind, and to support vulnerable households and small businesses in their efforts to switch to cleaner energy and transport.

The Fund will use the revenues from the new emissions trading system for fuel combustion in buildings, road transport and additional sectors (ETS2) to help vulnerable people, small businesses, and transport users cope with the costs of the clean transition, especially in housing and transport.

The guidance document builds on previous Commission guidance and technical assistance to Member States by setting out a series of principles for implementing the SCF. It also provides practical advice to help EU countries deliver their Social Climate Plans (necessary to access funding) and implement them effectively so that support swiftly reaches those exposed to energy or transport poverty, and social fairness is guaranteed.

In addition, the integration of Social Climate Plans into National and Regional Partnership Plans will enable more targeted and effective investments, allowing Member States and regions to overcome their specific challenges. Furthermore, this new framework will streamline the use of EU funds, leading to more efficient implementation and a stronger focus on delivering the Fund’s objectives.