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Possible social fund for climate action

Question écrite de Mme Sara SKYTTEDAL - Commission européenne

Question de Mme Sara SKYTTEDAL,

Diffusée le 17 juin 2021

Subject: Possible social fund for climate action

On 9 June, in a speech to the European Economic and Social Committee plenary, Vice-President Timmermans suggested that the Commission could potentially create a social fund to support citizens against price hikes on fuels if road transport and buildings were included in the emissions trading system. He stated that the Commission ‘will hardwire social fairness in these proposals. [...] [and that] revenues generated from emissions trading in road transport and buildings could be put into a dedicated fund, so that Member States can use those revenues to compensate the cost of this transition to vulnerable citizens1’.

Given the above:

1. When will this proposal be published, and what will it contain?

2. Does the Commission think it is fair for taxpayers to fund the transition in other Member States – who have not previously taken the initiative to improve their housing standards – on top of having to pay an extra fuel tax?

3. Will pre-existing national laws – such as heritage protection regulations (e.g. the Swedish Q- märkning) – be recognised? The technical changes needed for energy efficiency might not be permitted by these laws, thereby creating an immense financial burden for residents, despite suggested funding opportunities.

1 https://ec.europa.eu/commission/commissioners/2019-2024/timmermans/announcements/speech-european-

economic-and-social-committee-plenary-social-issues-european-green-deal_en

Réponse - Commission européenne

Diffusée le 23 août 2021

Answer given by Executive Vice-President Timmermans on behalf of the European Commission (24 August 2021)

1. Carbon pricing via emissions trading generates revenues, which can be used to alleviate the burden on the vulnerable groups. The Commission proposed, as part of the Fit for 55 package on 14 July 2021, a Social Climate Fund (2) to address the impacts of the introduction of carbon pricing into the buildings and road transport sectors.

The Social Climate Fund provides funding to Member States to support measures and investments in increased energy efficiency of buildings, decarbonisation of heating and cooling of buildings, including the integration of energy from renewable sources, and granting improved access to zero‐ and low-emission mobility and transport. These measures and investments need to benefit vulnerable households, micro-enterprises or transport users. It can also provide direct income support to vulnerable populations.

2. The Fund uses the yearly allowances that are auctioned under the emissions trading system. It is a separate upstream system that will regulate fuel suppliers, who will be responsible for monitoring and reporting the quantity of fuels they place on the market and for surrendering emission allowances each calendar year depending on the carbon intensity of the fuels. This approach incentivises the fuel suppliers to decarbonise their product as this will reduce the cost of compliance with the emissions trading system.

3. In order to access these funds, Member States should develop and submit to the Commission their social climate plans identifying the measures they would like to finance via the Fund. They know their national legislation and concrete conditions best — who the most vulnerable people are and take into account their concrete laws related to the heritage protection regulations.

⋅1∙ https://ec.europa.eu/commission/commissioners/2019-2024/timmermans/announcements/speech-european-economic-and-social-committee-plenary-social-

issues-european-green-deal_en

⋅2∙ COM(2021) 568 final.



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