€86 billion EU Social Climate Fund at risk of mismanagement

Brussels, [11 December] – An exclusive new report from eight major European local and regional government networks reveals that vulnerable households in the EU are at risk of being underserved by the €86 billion Social Climate Fund (SCF) due to inadequate consultation by national governments.

The survey underpinning the report, conducted by the Local Alliance — a coalition comprising ACR+, CEMR, Climate Alliance, Energy Cities, Eurocities, FEDARENE, ICLEI Europe and POLIS — highlights widespread non-compliance with key requirements under SCF legislation. 

Articles 4 and 5 of the SCF state that Member States must engage with local and regional governments in developing their national Social Climate Plans. However, the report finds that many governments are failing to fulfil these obligations, often reducing consultations to empty gestures or bypassing them entirely.

A missed opportunity to address local needs

The SCF is a flagship initiative under the European Green Deal, aimed at supporting vulnerable households. But the findings show a troubling disconnect between national decision-makers and their local governments.

The survey, covering cities and regions across 14 Member States, including Belgium, Finland, Germany, Greece and Spain, paints a stark picture of delayed consultations, inadequate dialogue, and missed opportunities to incorporate local expertise.

“Without genuine collaboration with local and regional governments, national Social Climate Plans risk being disconnected from differing on-the-ground realities in regions, cities and towns,” warns Wolfgang Teubner, Regional Director of ICLEI Europe. This could lead to top-down policies that fail to effectively support the communities most in need.”

The Social Climate Fund can drive a fair energy transition, reduce energy poverty, and boost energy efficiency across Europe. However, this will only succeed if regional and local governments, along with their energy and climate agencies, are properly involved in the Social Climate Plans process.

Filip Dumitriu, Director of the FEDARENE

Local governments: Key partners for effective action

Local and regional governments are uniquely positioned to ensure that EU funds address the specific needs of their communities. They bring expertise, proximity, and an understanding of local priorities, which are crucial for tailoring measures to effectively support vulnerable households.

The absence of meaningful consultation not only undermines the legislative requirements but also jeopardises the effectiveness of the SCF just six months before Member States are due to submit their plans in June.

Recommendations for national and EU decision-makers

To ensure the Social Climate Fund effectively supports vulnerable households, the Local Alliance urges Member States, amongst others, to prioritise meaningful collaboration with regional and local governments, through locally developed plans such as SECAPs and Sustainable Urban Mobility Plans.

This will provide EU investments that are aligned with local needs to address energy and transport poverty, ensuring measures that target the needs of vulnerable groups like women, older people and single-parent households. For more information, download the full report here.

For more information, please contact:

Mélissa Miklos
Communication Manager
melissa.miklos@fedarene.org