Social Climate Fund

Last updated: 18 November 2022

As part of the EU's Fit for 55 Package, the Commission put in place the Social Climate Fund to ensure a structural response to addressing energy and mobility poverty. It will provide Member States additional funding for building 

improvements, infrastructure development and direct income support that can support citizens throughout the initial phase of the green transition. 


With EUR 72.2 billion, the Fund specifically targets population groups (households, transport users, microenterprises) vulnerable to the challenges arising from the proposed extension of emission trading to sectors of building and road transport. The Fund can provide resources for Member States to grant temporary direct income support. 


With a proposal to draw on matching Member State funding, the Fund would mobilise EUR 144.4 billion.


The Social Climate Fund builds on the revision of the EU emissions trading system (EU ETS) under the Fit for 55 legislative package. Emissions from the building and road transports sectors will not be covered by the existing EU ETS, but by a new separate emissions trading system. The Commission created the Social Climate to address specifically any social impacts which might arise from this new system. 

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