Implementing a Social Climate Fund that works for the people and the planet
Anargiroi village, Western Macedonia, Greece
With energy and food prices on the rise, energy and mobility poverty – already highly problematic before the current geopolitical and economical crisis – are an increasing problem across the EU. Without targeted investment and redistributive policies, the climate transition risks creating a two tier society. If wealthier households transition faster than those on low and middle incomes, inequalities will increase and public support for the transition will be at risk.
That is why the Social Climate Fun (SCF) is a highly needed and indispensable part of the Fit for 55 package. The Fund should go beyond mitigating the social impacts of the new Emissions Trading System for buildings and road transport and aim to end energy and mobility poverty. In the meantime, it is essential to prevent and counter the unequal impacts that a new carbon price for these sectors will have in different member states.