The implementation of the Social Climate Fund provides an opportunity to accelerate the decarbonisation of domestic heating without exacerbating energy poverty, provided that investments effectively reach the households most in need. The report by the Buildings Performance Institute Europe (BPIE) examines this issue in Bulgaria, Germany, Italy, Poland and Romania, concluding that the greatest reductions in energy consumption and household energy bills can only be achieved by combining deep building renovation with the replacement of fossil fuel-based heating systems by heat pumps or district heating networks.

Although these measures require significant upfront investment, they deliver lasting benefits in terms of energy savings, emissions reductions and improved air quality. The study also assesses the National Social Climate Plans and identifies uneven progress in their ability to identify vulnerable groups, prioritise interventions and allocate resources. Its main recommendations include increasing financial support, linking funding to the level of energy performance achieved, expanding technical assistance, and making more strategic use of revenues from the EU Emissions Trading System 2 (ETS2) to ensure a socially equitable energy transition.