Exclude fossil fuels from Social Climate Fund

In our joint letter addressed to EU decision makers participating in the trilogue negotiations for the Social Climate Fund (SCF), we explicitly demand the exclusion of fossil fuels from financial support via this fund. Following the European Commission’s proposal on SCF indicators allowing for fossil fuel based installations to be funded under the SCF, we provide the reasons why such a policy not only hinders EU’s green transition, but also deepens the dependency of vulnerable households on expensive and polluting fossil fuels. In other words, “it will undermine the stated European Green Deal objective of ‘leaving no one behind’”.

We point out that in a time when energy bills are soaring, while energy savings and renewable heating solutions are readily available, access to green infrastructure – especially for low incomes and those at risk of poverty – still faces many obstacles. Taking for granted that citizens should not take back seat to polluting industries, and that stakeholder participation in policy making should be ensured, the letter concludes with three crucial points:

  1. Exclude fossil fuels from the SCF and phase out free allowances for industry as fast as possible.
  2. Increase the SCF budget so that it matches at least 25% of ETS2 revenue and is boosted with Member State co-financing.
  3. Ensure Social Climate Plans are developed with the people who need its help most, and with the groups who represent them.

You can read the joint letter here.