In an opinion piece for Energypress.gr, Nikos Mantzaris analyzes the challenges brought by the introduction of the new Emissions Trading System (ETS-2) for buildings and road transport from 2027, as well as the role of the Social Climate Fund and the opportunities created by the Social Climate Plans.
The implementation of ETS-2 is expected to increase heating and transport costs, placing a burden on citizens and businesses. To address the expected social impact, the European Union created the Social Climate Fund, allocating €86.7 billion for the 2026-2032 period, with €4.8 billion earmarked for Greece. This insufficient amount can be supplemented by Member States with additional revenues from the ETS-1 and ETS-2 in order to address the major challenge of energy and transport poverty.
By June 2025, Member States have to submit their Social Climate Plans (SCPs), which will define the policies to be implemented and the categories of beneficiaries. Nikos Manzaris stresses the importance of a meaningful consultation with social partners on these plans.
Moreover, the effective use of the available funds is a crucial issue. In particular, priority should be given to solutions that contribute to permanent decoupling from fossil fuels, such as energy upgrades, the electrification of heating and the promotion of sustainable transport, rather than short-term fossil fuel consumption subsidies.
The article concludes that Social Climate Plans represent a unique opportunity to simultaneously reduce social inequalities and protect the climate, as long as they are accompanied by evidence-based policies and meaningful citizen participation. If this is not achieved, the project risks failing, thus widening social inequalities.
The opinion article by Nikos Mantzaris was published on 22 December 2024 on energypress.gr, and was also included in the same website’s special feature.
