€86 Billion EU Social Climate Fund Faces Risk of Mismanagement

A new report from eight European local and regional government networks reveals that vulnerable EU households may not fully benefit from the €86 billion Social Climate Fund (SCF) due to insufficient consultation by national governments.

The survey, conducted by the Local Alliance, (ACR+, CEMR, Climate Alliance, Energy Cities, Eurocities, FEDARENE, ICLEI Europe and POLIS) highlights that many Member States are failing to comply with SCF legislation, particularly the requirement to involve local and regional governments in developing national Social Climate Plans. This lack of consultation risks creating policies disconnected from local needs.

The SCF aims to tackle energy poverty and improve energy efficiency, but its success depends on the inclusion of local expertise. Wolfgang Teubner from ICLEI Europe warns that national plans may not effectively support vulnerable communities without meaningful collaboration with local authorities.

The report urges Member States to engage with local governments through locally developed plans, such as SECAPs and Sustainable Urban Mobility Plans, to ensure EU investments are aligned with the needs of vulnerable groups like women, older people, and single-parent households.