14 November 2024 | 15:00 CET | ONLINE

The ETS2, the new carbon pricing system for fuel used in buildings and road transport will begin in 2027. 

To offset the impact of increased fuel prices in homes and vehicles the Social Climate Fund was created by pooling revenues from the auctioning of emission allowances. Topped up by co-funding from EU countries, it will distribute €86.7 billion in targeted investment and temporary income support to vulnerable households and SMEs. To access the fund, member states will have to develop and submit national social climate plans (SCPs) by June 2025 but several questions remain as to how to spend the limited funds. 

Beyond the delivery of thorough and consultative Social Climate Plans, the SCF process is an opportunity for member states to consider the most impactful spending practices for creating a renewable and inclusive energy system through the use of the remaining ETS2 revenue, estimated to be worth €260 billion between 2027 and 2032 (based on an average ETS2 price of €45/per tonne).

It is recognised that transformational change in how we live and navigate the world will be required to achieve the rapid reductions in greenhouse gas emissions necessary to reach the EU’s 2040 climate target, and climate neutrality by 2050. However, those with the lowest income must not be left behind. They must be provided the support required to participate in this transformational change and to protect their quality of life. 

Within the scope of the Social Climate Fund (SCF) and considering its limited resources, which spending measures can most effectively reduce energy and transport poverty while advancing meaningful progress toward a fossil-free society? 

In this ETS Talk, chaired by Zero’s Islene Façanha, we’ll be joined by Eleanor Scott, EU carbon market expert at Carbon Market Watch; Luke Haywood, policy manager for climate and energy at the European Environmental Bureau; and Bernardo Galantini, freight and climate officer at Transport & Environment. The discussion will focus on the following questions:

• What are the main processes and requirements for preparing and developing national social climate plans?
• What opportunities exist for civil society and other stakeholders to advocate for fair and impactful climate actions?
• What are the most effective spending measures to provide zero-emission transport options for those affected by transport poverty?
• How can the Social Climate Fund improve renewable energy access for vulnerable households, especially in rented or multi-home buildings?
• How can the Social Climate Fund contribute to a citizen-driven, 100% renewable energy system?

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AGENDA

• Introduction by Islene Façanha, ZERO (5 min) 
• Eleanor Scott – Opportunity of ETS2 revenues and introduction to LIFE EFFECT Project (10 min) 
• Luke Haywood – Outline of the NSCP process + Potential ingredients in NSCPs + How renewables can help vulnerable households through the SCF – (20 min) 
• Bernardo Galantini – Spending measures for transport poverty (social leasing for Electric Vehicles etc) – (20 min) 
• Q+A (20 min)
• Conclusion, Islene Façanha, ZERO (5 min)