The EU wants a just energy transition. Find out how the Social Climate Fund aims to help those who are most exposed to energy poverty.

As part of its efforts to achieve carbon neutrality by 2050, the EU plans to introduce further requirements for reducing emissions in construction and transport. The new rules will stimulate Europeans and businesses to invest in alternative energy sources, better isolation and clean transport.

In order to support vulnerable households and small business in this energy  transition, the European Commission proposed creating a Social Climate Fund with a budget of €72 billion for 2025-2032. The establishment of the fund is part of the Fit for 55 legislative package, which aims to achieve the objectives of the European Green Deal.

On 8 June the Parliament decided to refer the report back to the responsible parliamentary committees to further work on the legislation.

Tackling energy poverty

The proposal, jointly drafted by Parliament's environment and employment and social affairs committees, aims to establish common definitions across the EU for energy poverty and mobility poverty.

Energy poverty refers to households which are unable to access essential energy services that allow for a decent standard of living. Mobility poverty refers to households that have high transport costs or limited access to affordable modes of transport.

Parliament seeks a specific focus on challenges faced by islands, mountainous regions and less-developed and remote areas. It will also ask to block access to the fund for countries that do not respect fundamental rights or the rule of law.

Read the full article here.