Unlocking the Potential of Local and Regional Governments in the Social Climate Fund

This briefing, based on a comprehensive survey conducted by the Local Alliance — a coalition of eight leading European local and regional government networks (ACR+, CEMR, Climate Alliance, Energy Cities, Eurocities, FEDARENE, ICLEI Europe and POLIS) — delves into the multilevel design of national Social Climate Fund (SCF) plans. It evaluates how Member States engage local and regional governments in the development of their plans, highlighting successes, challenges, and missed opportunities.

The SCF is a cornerstone of the EU’s Green Deal, aimed at mitigating the social impacts of the new Emissions Trading System (ETS2). With €86 billion earmarked to support vulnerable households from 2026 to 2032, the involvement of local and regional governments is critical to ensuring effective and tailored solutions.

Despite legal requirements for consultation under Articles 4, 5, and 22 of the SCF legislation, the survey reveals significant gaps in collaboration between national and local levels, jeopardizing the fund’s potential to drive equitable energy and mobility transitions.

Explore the briefing to gain insights into the current state of SCF planning across the EU and discover recommendations for fostering genuine multilevel governance to address the needs of Europe’s most vulnerable communities.