BRUSSELS — All but one EU government missed a Monday deadline for plans to make
the green transition affordable, threatening to delay the disbursement of funds
meant to protect the poorest Europeans.
Only Sweden sent in the so-called social climate plan on time, the European
Commission confirmed on Tuesday. The remaining 26 countries are still working on
their plans — despite most of them fretting about the impact of green policies
on vulnerable households.
The plans are required because the EU is preparing to put a price
on planet-warming emissions from heating and road transport from 2027, which is
expected to increase households’ fuel bills. The idea is that the cost will
incentivize Europeans to switch to fossil-free alternatives like electric
vehicles and heat pumps.
To avoid penalizing low-income Europeans — many of whom already struggle paying
their energy bills and can’t afford high-priced EVs — as well as small
businesses, the EU set up the €86.7 billion Social Climate Fund, which is meant
to fund measures to help poor households starting next year. To access these
funds, each EU country has to submit a plan detailing how it will spend its
share of the cash.
A majority of EU countries recently demanded tweaks to the incoming carbon price
over cost fears.
But with nearly every country blowing the June 30 deadline, disbursement of the
relief funds now faces holdups.
“There are no legal consequences for not submitting the plans,” said Commission
spokesperson Eva Hrnčířová, but warned that it may delay access to the cash.
The Commission must wait for all 27 social climate plans before it can set up
the fund, Hrnčířová explained. Only after that will EU governments be able to
access the fund’s public money. Hrnčířová added that the EU executive will have
five months to assess countries’ plans, but couldn’t specify when that timeline
would start.
The cash pot is meant to finance initiatives like renewable energy, home
renovation, clean heating and cooling and low-emission cars.
“We wanted to have the fund up from the beginning of next year,” Hrnčířová said,
but “if we don’t have [the plans] soon, then obviously the work on this project
needs to be postponed.”
“We hope that the member states will now swiftly prepare their plans,” she
added.
This article has been updated with additional information from the European
Commission regarding the Social Climate Fund.