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The European Commission has approved the Social Climate Fund (SCF)  with an amount of 86.7 billion to benefit vulnerable households, micro-enterprises and transport users that are particularly affected by energy and transport poverty.

The Social Climate Fund is part of the “Fit for 55 in 2030 package", which is the EU’s plan to reduce greenhouse gas emissions by at least 55% by 2030.

“This is a balanced deal that achieves the ambition we need in making the climate transition fairer and more just,” said David Casa, a representative of the European Parliament.

The Fund will start in 2026 and  will finance temporary direct income support measures to tackle the increase in road transport and heating fuel prices - with a limit of up to 37.5% of the total estimated cost of each national plan. It will also cover long-lasting structural investments, including buildings renovation, decarbonisation solutions and integration of renewable energy, purchasing and infrastructure for zero- and low-emission vehicles, as well as the use of public transport and shared mobility services