EC: Guidance issued on the implementation of Social Climate Fund and completion of Social Climate Plans

On 09/10/2025, the European Commission issued a new guidance to help EU Member States effectively implement the Social Climate Fund (SCF) and complete their Social Climate Plans (SCPs), two tools linked to the implementation of Emission Trading Scheme (ETS) 2 in Member States, due to entry into force in 2026.

Starting in 2026 and mobilising over €86 Bn, the SCF has been designed to support vulnerable households and small businesses in the perspective of the implementation of the ETS 2 for fuel combustion in buildings, road transport and transport implementation, due to entry into force in 2027. Members States must deliver their SCPs (necessary to access funding) before the end of 2025, and implement them effectively in order to receive funds.

To receive funds under the SCF, Member States have to incorporate the new ETS2 - legislation which is already in force - into national law (official deadline for transposition was set at 30/06/2024, and only four countries have implemented it as of today). Additionnally, European countries must submit their SCPs to the Commission for approval…