Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060

• CELEX: Regulation (EU) 2023/955
• Articles: 34

Article 1 Subject matter and scope

This Regulation establishes the Social Climate Fund (the ‘Fund’) for the period from 2026 to 2032.

The Fund shall provide financial support to Member States for the measures and investments included in their Social Climate Plans (the ‘Plans’).

The measures and investments supported by the Fund shall benefit households, micro-enterprises and transport users, which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC, in particular households in energy poverty or households in transport poverty.

Article 2 Definitions

For the purposes of this Regulation, the following definitions apply:

(1)

‘energy poverty’ means a household’s lack of access to essential energy services that underpin a decent standard of living and health, including adequate warmth, cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies;

(2)

‘transport poverty’ means individuals’ and households’ inability or difficulty to meet the costs of private or public transport, or their lack of or limited access to transport needed for their access to essential socioeconomic services and activities, taking into account the national and spatial context;

(3)

‘estimated total costs of the Plan’ means the estimated total costs of the measures and investments included in the Plan;

(4)

‘financial allocation’ means non-repayable financial support under the Fund that is available for allocation, or that has been allocated, to a Member State;

(5)

‘milestone’ means a qualitative achievement used to measure progress towards the achievement of a measure or an investment;

(6)

‘target’ means a quantitative achievement used to measure progress towards the achievement of a measure or investment;

(7)

‘energy from renewable sources’ or ‘renewable energy’ means energy from renewable sources as defined in Article 2, second subparagraph, point (1), of Directive (EU) 2018/2001 of the European Parliament and of the Council  ( 25 ) ;

(8)

‘household’ means a private household as defined in Article 2, point (15), of Regulation (EU) 2019/1700 of the European Parliament and of the Council  ( 26 ) ;

(9)

‘micro-enterprise’ means an enterprise that employs fewer than 10 persons and whose annual turnover or annual balance sheet does not exceed EUR 2 million, calculated in accordance with Articles 3 to 6 of Annex I to Commission Regulation (EU) No 651/2014  ( 27 ) ;

(10)

‘vulnerable households’ means households in energy poverty or households, including low income and lower middle-income ones, that are significantly affected by the price impacts of the inclusion of greenhouse gas emissions from buildings within the scope of Directive 2003/87/EC and lack the means to renovate the building they occupy;

(11)

‘vulnerable micro-enterprises’ means micro-enterprises that are significantly affected by the price impacts of the inclusion of greenhouse gas emissions from buildings or road transport within the scope of Directive 2003/87/EC and that, for the purpose of their activity, lack the means either to renovate the building they occupy, or to purchase zero- and low-emission vehicles or to switch to alternative sustainable modes of transport, including public transport, as relevant;

(12)

‘vulnerable transport users’ means individuals and households in transport poverty, but also individuals and households, including low income and lower middle-income ones, that are significantly affected by the price impacts of the inclusion of greenhouse gas emissions from road transport within the scope of Directive 2003/87/EC and lack the means to purchase zero- and low-emission vehicles or to switch to alternative sustainable modes of transport, including public transport;

(13)

‘building renovation’ means any kind of energy-related building renovation, which has the aim of increasing the energy performance of buildings, such as the insulation of the building envelope, that is to say the walls, roof, floor and the replacement of windows, and the installation of technical building systems, compliant with any relevant national safety standards, including by contributing to the renovation requirements established in the Directive of the European Parliament and of the Council on the energy performance of buildings (recast);

(14)

‘technical building system’ means the technical equipment for space heating, space cooling, ventilation, domestic hot water, building automation and control, on-site renewable energy generation and storage, or a combination of such technical equipment, including those systems using energy from renewable sources, of a building or building unit;

(15)

‘active customer’ means an active customer as defined in Article 2, point (8), of Directive (EU) 2019/944 of the European Parliament and of the Council  ( 28 ) ;

(16)

‘citizen energy community’ means a citizen energy community as defined in Article 2, point (11), of Directive (EU) 2019/944;

(17)

‘renewable energy community’ means a renewable energy community as defined in Article 2, point (16), of Directive (EU) 2018/2001;

(18)

‘peer-to-peer trading of renewable energy’ means peer-to-peer trading of renewable energy as defined in Article 2, point (18), of Directive (EU) 2018/2001;

(19)

‘zero- and low-emission vehicle’ means zero- and low- emission vehicle as defined in Article 3(1), point (m), of Regulation (EU) 2019/631 of the European Parliament and of the Council  ( 29 ) .

Article 3 Objectives

1.   The general objective of the Fund shall be to contribute to a socially fair transition towards climate neutrality by addressing the social impacts of the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC.

2.   The specific objectives of the Fund shall be to support vulnerable households, vulnerable micro-enterprises and vulnerable transport users, through temporary direct income support and through measures and investments intended to increase the energy efficiency of buildings, decarbonisation of heating and cooling of buildings, including through the integration in buildings of renewable energy generation and storage, and to grant improved access to zero- and low-emission mobility and transport.

Article 4 Social Climate Plans

1.   Each Member State shall submit to the Commission its Plan. The Plan shall contain a coherent set of existing or new national measures and investments to address the impact of carbon pricing on vulnerable households, vulnerable micro-enterprises and vulnerable transport users in order to ensure affordable heating, cooling and mobility, while accompanying and accelerating necessary measures to meet the climate targets of the Union.

2.   Each Member State shall ensure consistency between its Plan and its updated integrated national energy and climate plan referred to in Article 14(2) of Regulation (EU) 2018/1999.

3.   The Plan may include national measures providing temporary direct income support to vulnerable households and vulnerable transport users to reduce the impact of the increase in the price of fossil fuels resulting from the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC.

4.   The Plan shall include national and, where relevant, local and regional measures and investments, in accordance with Article 8, to:

(a)

carry out building renovation, and decarbonise heating and cooling of buildings, including the integration of renewable energy generation and storage;

(b)

increase the uptake of zero- and low-emission mobility and transport.

5.   Where a Member State has already in place a national emission trading system for buildings and road transport or carbon tax, the national measures already in place to mitigate social impacts and challenges may be included in the Plan provided that they comply with this Regulation.

Article 5 Public consultation

1.   Each Member State shall submit a Plan to the Commission following a public consultation with local and regional authorities, representatives of economic and social partners, relevant civil society organisations, youth organisations and other stakeholders. Each Member State shall conduct that consultation in accordance with the requirements of Article 10 of Regulation (EU) 2018/1999 and in compliance with that Member State’s national legal framework.

2.   Each Member State shall include in its Plan a summary of:

(a)

the consultation held pursuant to paragraph 1; and

(b)

how the input of the stakeholders who participated in the consultation is reflected in the Plan.

3.   For the purposes of Article 16(3), the Commission shall assess whether the Plan has been developed in consultation with stakeholders in accordance with paragraph 1 of this Article.

4.   The Commission shall support Member States by providing examples of good practices of consultations on the Plans in accordance with Article 6(4).

Article 6 Content of Social Climate Plans

1.   The Plan shall set out the following elements:

(a)

concrete measures and investments in accordance with Articles 4 and 8 to reduce the effects referred to in point (d) of this paragraph, together with an explanation of how those measures and investments would contribute effectively to the achievement of the objectives set out in Article 3 within the overall setting of a Member State’s relevant policies;

(b)

where relevant, concrete, mutually coherent and reinforced accompanying measures to accomplish the measures and investments and reduce the effects referred to in point (d);

(c)

information on existing or planned financing of measures and investments from other Union, international, public or, where relevant, private sources which contribute to the measures and investments set out in the Plan, including information on temporary direct income support;

(d)

an estimate of the likely effects of the increase in prices resulting from the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC on households, in particular on incidence of energy poverty and transport poverty, and on micro-enterprises; those effects are to be analysed at the appropriate territorial level as defined by each Member State, taking into account national specificities and elements, such as access to public transport and basic services, and identifying the areas mostly affected;

(e)

an estimated number of, and the identification of, vulnerable households, vulnerable micro-enterprises and vulnerable transport users;

(f)

an explanation of how the definitions of energy poverty and transport poverty are to be applied at national level;

(g)

where the Plan provides for measures as referred to in Article 4(3), the criteria for the identification of eligible final recipients, the envisaged time limit for the measures in question and their justification on the basis of a quantitative estimate and a qualitative explanation of how those measures are expected to reduce energy poverty, transport poverty and the vulnerability of households to an increase in the price of road transport and heating fuel;

(h)

envisaged milestones, targets and an indicative comprehensive timetable for the implementation of the measures and investments to be completed by 31 July 2032;

(i)

where applicable, a timetable for the gradual reduction of support for low-emission vehicles;

(j)

the estimated total costs of the Plan, accompanied by appropriate justification and explanations of how they are in line with the principle of cost efficiency and commensurate to the expected impact of the Plan;

(k)

the envisaged national contribution to the estimated total costs of the Plan, calculated in accordance with Article 15;

(l)

except for the measures referred to in Article 4(3) of this Regulation, an explanation of how the Plan ensures that none of the measures or investments would do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852;

(m)

the arrangements for the effective monitoring and implementation of the Plan by the Member State concerned, in particular of the proposed milestones and targets, the relevant common indicators referred to in Annex IV, and if none of those indicators are relevant for a specific measure or investment, additional individual indicators proposed by the Member State concerned;

(n)

for the preparation and, where available, for the implementation of the Plan, a summary of the public consultation process referred to in Article 5;

(o)

an explanation of the Member State’s system to prevent, detect and correct fraud, corruption and conflicts of interests when using the financial allocation provided under the Fund, and of the arrangements that aim to avoid double funding from the Fund and other Union programmes;

(p)

where applicable and relevant, an explanation of how geographic specificities, such as islands, outermost regions and territories, rural or remote areas, less accessible peripheries, mountainous areas or areas lagging behind, have been taken into account in the Plan;

(q)

where relevant, an explanation of how the measures and investments aim to address gender inequality.

2.   The Plan may include technical assistance actions necessary for the effective administration and implementation of the measures and investments.

3.   The Plan shall be consistent with the information included in and the commitments made by the Member State under the following:

(a)

the European Pillar of Social Rights Action Plan;

(b)

its cohesion policy programmes under Regulation (EU) 2021/1060;

(c)

its recovery and resilience plan under Regulation (EU) 2021/241;

(d)

its building renovation plan under the Directive of the European Parliament and of the Council on the energy performance of buildings (recast);

(e)

its updated integrated national energy and climate plan under Regulation (EU) 2018/1999; and

(f)

its territorial just transition plans under Regulation (EU) 2021/1056.

4.   During the preparation of the Plans, the Commission shall organise an exchange of good practices, including on cost-effective measures and investments to be included in the Plans. Member States may request technical support under the European Local ENergy Assistance (ELENA) facility, established by an Agreement between the Commission and the European Investment Bank in 2009, or under the Technical Support Instrument established by Regulation (EU) 2021/240 of the European Parliament and of the Council  ( 30 ) .

5.   For the purposes of paragraph 1, point (l), of this Article, the Commission shall provide technical guidance to the Member States, tailored to the scope of the Fund, on the compliance of measures and investments with the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852.

6.   To assist Member States in providing the information referred to in paragraph 1, point (d), of this Article the Commission shall provide a common value to be considered as an estimate for the carbon price resulting from the inclusion of greenhouse gas emissions from buildings, road transport and additional sectors within the scope of Directive 2003/87/EC.

7.   Each Member State shall use the template set out in Annex V for the Plan.

Article 7 Principles governing the Fund

1.   The Fund shall provide financial support to Member States to fund the measures and investments set out in their Plans.

2.   Payment of financial support pursuant to paragraph 1 of this Article to each Member State shall be conditional upon that Member State achieving the milestones and targets for the measures and investments in accordance with Article 8 of this Regulation. Those milestones and targets shall be compatible with the Union’s climate targets and the objective set out in Regulation (EU) 2021/1119, and shall cover in particular:

(a)

energy efficiency;

(b)

building renovation;

(c)

zero- and low-emission mobility and transport;

(d)

greenhouse gas emission reductions;

(e)

reductions in the number of vulnerable households, in particular households in energy poverty, of vulnerable micro-enterprises and of vulnerable transport users.

3.   The Fund shall only support measures and investments which comply with the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852.

4.   The measures and investments supported by the Fund shall reduce fossil fuel dependency and, where relevant, contribute to the implementation of the European Pillar of Social Rights as well as to sustainable and quality jobs in the fields covered by the measures and investments of the Fund.

Article 8 Eligible measures and investments to be included in the Social Climate Plans

1.   The Member State may include in the estimated total costs of the Plan the following measures and investments with lasting impacts, provided they principally target vulnerable households, vulnerable micro-enterprises or vulnerable transport users and intend to:

(a)

support building renovations, in particular for vulnerable households and vulnerable micro-enterprises occupying the worst performing buildings, and including for tenants and people living in social housing;

(b)

support access to affordable energy-efficient housing, including social housing;

(c)

contribute to the decarbonisation, such as through electrification, of heating and cooling of, and cooking in, buildings by providing access to affordable and energy-efficient systems, and by integrating renewable energy generation and storage, including through renewable energy communities, citizen energy communities and other active customers to promote the uptake of the self-consumption of renewable energy, such as energy sharing and peer-to-peer trading of renewable energy, connection to smart grids and to district heating networks, that contributes to achieving energy savings or to reducing energy poverty;

(d)

provide targeted, accessible and affordable information, education, awareness and advice on cost-effective measures and investments, available support for building renovations and energy efficiency, as well as sustainable and affordable mobility and transport alternatives;

(e)

support public and private entities, including social housing providers, in particular public-private cooperatives, in developing and providing affordable energy efficiency solutions and appropriate funding instruments in line with the social goals of the Fund;

(f)

provide access to zero- and low-emission vehicles and bicycles, while maintaining technological neutrality, including financial support or fiscal incentives for their purchase as well as for appropriate public and private infrastructure, in particular, where relevant, purchase of zero- and low-emission vehicles, infrastructure for recharging and refuelling and development of a second-hand zero-emission vehicles market; Member States shall aim to ensure that where zero-emission vehicles are an affordable and deployable solution, support to such vehicles is prioritised in their Plans;

(g)

incentivise the use of affordable and accessible public transport and support private and public entities, including cooperatives, in developing and providing sustainable mobility on demand, shared mobility services and active mobility options.

2.   Member States may include in the estimated total costs of the Plans the costs of measures providing direct income support to vulnerable households and vulnerable transport users to reduce the impact of the increase in road transport and heating fuel prices. Such support shall be temporary and decrease over time. Member States may provide temporary direct income support if their Plans contain measures or investments aimed at those vulnerable households and vulnerable transport users in accordance with Article 8(1) of this Regulation. Such support shall be limited to the direct impact of the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC. The costs of measures providing temporary direct income support shall not represent more than 37,5 % of the estimated total costs of the Plan, as referred to in Article 6(1), point (j), of this Regulation.

3.   Member States may include in the estimated total costs of the Plans the costs of technical assistance to cover expenses related to training, programming, monitoring, control, audit and evaluation activities which are required for the management of the Fund and the achievement of its objectives, for example studies, information technology (IT) expenses, public consultation of stakeholders, information and communication actions. The costs of such technical assistance shall be up to 2,5 % of the estimated total costs of the Plan, as referred to in Article 6(1), point (j).

Article 9 Pass-on of benefits to households, micro-enterprises and transport users

1.   Member States may include in the Plans support provided through public or private entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users, provided that those entities carry out measures and investments ultimately benefitting vulnerable households, vulnerable micro-enterprises or vulnerable transport users.

2.   Member States shall provide for the necessary statutory and contractual safeguards to ensure that the entire benefit is passed on to the vulnerable households, vulnerable micro-enterprises or vulnerable transport users.

Article 10 Resources of the Fund

1.   A maximum amount of EUR 65 000 000 000 for the period from 1 January 2026 to 31 December 2032 in current prices shall be made available, in accordance with Articles 10a(8b), 30d(3) and 30d(4) of Directive 2003/87/EC, for implementation of the Fund. That amount shall constitute external assigned revenue for the purposes of Article 21(5) of Regulation (EU, Euratom) 2018/1046, without prejudice to Article 30d(4), sixth subparagraph, of Directive 2003/87/EC.

The annual amounts allocated to the Fund, within the limit of the maximum amount laid down in the first subparagraph of this paragraph, shall not exceed the amounts referred to in Article 30d(4), fourth subparagraph, of Directive 2003/87/EC.

Where the emission trading system established in accordance with Chapter IVa of Directive 2003/87/EC is postponed until 2028 pursuant to Article 30k of that Directive, the maximum amount to be made available to the Fund shall be EUR 54 600 000 000 and the annual amounts allocated to the Fund shall not exceed the respective amounts referred to in the Article 30d(4), fifth subparagraph, of Directive 2003/87/EC.

2.   By way of derogation from Article 22(2) of Regulation (EU, Euratom) 2018/1046 and without prejudice to Article 19 of this Regulation, commitment appropriations covering the relevant maximum amount referred to in paragraph 1 of this Article shall be made available automatically at the beginning of each financial year, starting from 1 January 2026, up to the relevant applicable annual amounts referred to in the second and third subparagraphs of paragraph 1.

3.   The amounts referred to in paragraph 1 may also cover expenses pertaining to preparatory, monitoring, control, audit and evaluation activities which are required for the management of the Fund and the achievement of its objectives, in particular studies, meetings of experts, consultation of stakeholders, information and communication actions, including inclusive outreach actions, and corporate communication of the political priorities of the Union, insofar as they are related to the objectives of this Regulation, expenses linked to IT networks focusing on information processing and exchange, corporate IT tools, and all other technical and administrative assistance expenses incurred by the Commission for the management of the Fund. Expenses may also cover the costs of other supporting activities such as quality control and monitoring of projects on the ground and the costs of peer counselling and experts for the assessment and implementation of the eligible actions.

Article 11 Resources from and to shared management programmes and use of resources

1.   Resources allocated to Member States under shared management may, at their request, be transferred to the Fund subject to the conditions set out in the relevant provisions of Regulation (EU) 2021/1060. The Commission shall implement those resources directly in accordance with Article 62(1), first subparagraph, point (a), of Regulation (EU, Euratom) 2018/1046. Those resources shall be used exclusively for the benefit of the Member State concerned.

2.   Member States may request in their Plans submitted in accordance with Article 4(1) of this Regulation for the transfer of up to 15 % of their maximum annual financial allocation to the funds under shared management provided for in Regulation (EU) 2021/1060. The transferred resources shall finance measures and investments as referred to in Article 8 of this Regulation and shall be implemented in accordance with the rules of the funds to which the resources are transferred. Resources shall be transferred by Member States through the amendment of one or more programmes, except for programmes under the European territorial cooperation goal (Interreg), in accordance with Article 26a of Regulation (EU) 2021/1060, and shall be implemented in accordance with the rules set out in that Regulation and the rules of the funds to which the resources are transferred.

3.   Member States may entrust the managing authorities of the cohesion policy programmes under Regulation (EU) 2021/1060 with the implementation of measures and investments benefitting from the Fund, where applicable, in view of the synergies with those cohesion policy programmes and in conformity with the objectives of the Fund. Member States shall state their intention to thus entrust those authorities in their Plans. In such cases, the existing management and control systems put in place by Member States, as notified to the Commission, shall be deemed to comply with the requirements of this Regulation.

4.   Member States may include in their Plans, as part of the estimated total costs, the payments for additional technical support pursuant to Article 7 of Regulation (EU) 2021/240 and the amount of the cash contribution for the purpose of the Member State compartment pursuant to the relevant provisions of Regulation (EU) 2021/523 of the European Parliament and of the Council  ( 31 ) . Those costs shall not exceed 4 % of the maximum financial allocation for the Plan, and the relevant measures, as set out in the Plan, shall comply with this Regulation.

Article 12 Implementation

The Fund shall be implemented by the Commission under direct management in accordance with the relevant rules adopted pursuant to Article 322 TFEU, in particular Regulation (EU, Euratom) 2018/1046 and Regulation (EU, Euratom) 2020/2092 on a general regime of conditionality for the protection of the Union budget.

Article 13 Additionality and complementary funding

1.   Support under the Fund shall be additional to the support provided under other Union funds, programmes and instruments. Measures and investments supported under the Fund may receive support from other Union funds, programmes and instruments provided that such support does not cover the same cost.

2.   Support from the Fund, including temporary direct income support referred to in Article 4(3), shall be additional and shall not substitute recurring national budgetary expenditure.

3.   For technical assistance to Member States, administrative costs directly linked to the implementation of the Plan shall not be considered as recurring national budgetary expenditure.

Article 14 Maximum financial allocation

1.   The maximum financial allocation shall be calculated for each Member State in accordance with Article 10 and as specified in Annexes I and II.

2.   Each Member State may submit a request up to its maximum financial allocation to implement its Plan.

Article 15 National contribution to the estimated total costs

Member States shall contribute at least to 25 % of the estimated total costs of their Plans.

Article 16 Commission assessment

1.   The Commission shall assess the Plan and, where applicable, any amendment to that Plan submitted by a Member State in accordance with Article 18, for compliance with this Regulation. When carrying out that assessment, the Commission shall act in close cooperation with the Member State concerned. The Commission may make observations or seek additional information within two months from the date of submission of the Plan by the Member State. The Member State shall provide the requested additional information and may revise the Plan if needed, including after the submission of the Plan. The Member State and the Commission may agree to extend the deadline for assessment by a reasonable period if necessary.

2.   The Commission shall assess whether transfers requested in accordance with Article 11 meet the objectives of this Regulation.

3.   The Commission shall assess the relevance, effectiveness, efficiency and coherence of the Plan, taking into account the specific challenges and the financial allocation of the Member State, as follows:

(a)

for the purpose of assessing relevance, the Commission shall take into account the following criteria:

(i)

whether the Plan represents an adequate response to the social impact on and challenges faced by vulnerable households, vulnerable micro-enterprises and vulnerable transport users in the Member State concerned from the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC, in particular households in energy poverty or households in transport poverty, duly taking into account the challenges identified in the assessments of the Commission of the update of the concerned Member State’s integrated national energy and climate plan and of its progress pursuant to Article 9(3), and Articles 13 and 29 of Regulation (EU) 2018/1999, as well as in the Commission recommendations to Member States issued pursuant to Article 34 of Regulation (EU) 2018/1999 in view of the Union’s 2030 climate and energy targets and long-term objective of climate neutrality in the Union at the latest by 2050;

(ii)

whether the Plan is expected to ensure that measures and investments included in the Plan do not significantly harm environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 and whether the Plan helps reduce fossil fuel dependency;

(iii)

whether the Plan contains measures and investments that contribute to the green transition, including to addressing the social impacts and challenges resulting therefrom and in particular to the achievement of the Union’s 2030 climate and energy targets and long-term objective of climate neutrality in the Union at the latest by 2050 and the 2030 milestones of the Union’s Sustainable and Smart Mobility Strategy;

(b)

for the purpose of assessing effectiveness, the Commission shall take into account the following criteria:

(i)

whether the Plan is expected to have a lasting impact in the Member State on the challenges addressed by that Plan, in line with the Union’s 2030 climate and energy targets and long-term objective of climate neutrality in the Union at the latest by 2050, and in particular on vulnerable households, vulnerable micro-enterprises and vulnerable transport users, in particular households in energy poverty or households in transport poverty;

(ii)

whether the arrangements proposed by the Member State are expected to ensure the effective monitoring and implementation of the Plan, including the envisaged timetable, milestones and targets, and the related indicators;

(iii)

whether the measures and investments proposed by the Member State are consistent and compliant with the requirements of the Directive of the European Parliament and of the Council on energy efficiency (recast), Directive (EU) 2018/2001, the Regulation of the European Parliament and of the Council on the deployment of alternative fuels infrastructure, and repealing Directive 2014/94/EU of the European Parliament and of the Council, Directive 2009/33/EC of the European Parliament and of the Council  ( 32 ) and Directive 2010/31/EU; and

(iv)

whether the measures and investments proposed by the Member State foster complementarity, synergy, coherence and consistency with the Union instruments referred to in Article 6(3).

(c)

for the purposes of assessing efficiency, the Commission shall take into account the following criteria:

(i)

whether the justification provided by the Member State for the amount of the estimated total costs of the Plan is reasonable, plausible, in line with the principle of cost efficiency and commensurate with the expected national environmental and social impact, while also taking into account national specificities that could impact the costs provided in the Plan;

(ii)

whether the arrangements proposed by the Member State are expected to prevent, detect and correct corruption, fraud and conflicts of interests when using the financial allocation provided under the Fund, including the arrangements that aim to avoid double funding from the Fund and other Union programmes;

(iii)

whether the milestones and targets proposed by the Member State are efficient, in view of the scope, objectives and eligible actions of the Fund;

(d)

for the purpose of assessing coherence, the Commission shall take into account whether the Plan contains measures and investments that represent coherent actions.

Article 17 Commission decision

1.   On the basis of the assessment carried out in accordance with Article 16, the Commission shall decide on the Plan of a Member State, by means of an implementing act, no later than five months from the date of the submission of that Plan pursuant to Article 4(1).

2.   Where the Commission gives a positive assessment of a Plan, the implementing act referred to in paragraph 1 shall set out:

(a)

the measures and investments to be implemented by the Member State, the amount of the estimated total costs of the Plan, and the milestones and targets;

(b)

the maximum financial allocation allocated in accordance with Article 14(1) to be paid in instalments, in accordance with Article 20, once the Member State has satisfactorily achieved the relevant milestones and targets identified in relation to the implementation of the Plan;

(c)

the national contribution;

(d)

the arrangements and timetable for monitoring and implementation of the Plan, including, where relevant, measures necessary for complying with Article 21;

(e)

the relevant indicators relating to the achievement of the envisaged milestones and targets; and

(f)

the arrangements for providing access by the Commission to the underlying relevant data.

3.   The maximum financial allocation referred to in paragraph 2, point (b), of this Article shall be determined on the basis of the estimated total costs of the Plan proposed by the Member State, as assessed by reference to the criteria set out in Article 16(3).

The amount of the maximum financial allocation referred to in paragraph 2, point (b), of this Article shall be set as follows:

(a)

where the Plan complies satisfactorily with the criteria set out in Article 16(3), and the amount of the estimated total costs of the Plan minus the national contribution is equal to, or higher than, the maximum financial allocation for that Member State referred to in Article 14(1), the financial allocation allocated to the Member State shall be equal to the total amount of the maximum financial allocation referred to in Article 14(1);

(b)

where the Plan complies satisfactorily with the criteria set out in Article 16(3), and the amount of the estimated total costs of the Plan minus the national contribution is lower than the maximum financial allocation for that Member State referred to in Article 14(1), the financial allocation allocated to the Member State shall be equal to the amount of the estimated total costs of the Plan minus the national contribution;

(c)

where the Plan complies satisfactorily with the criteria set out in Article 16(3), but the assessment identifies weaknesses in the internal control systems, the Commission may require that additional measures to address those weaknesses be included in the Plan and be achieved by the Member State before the first payment;

(d)

where the Plan does not comply satisfactorily with the criteria set out in Article 16(3), no financial allocation shall be allocated to the Member State.

4.   Where the Commission gives a negative assessment of a Plan, the decision referred to in paragraph 1 shall include the reasons for that negative assessment. The Member State shall resubmit the Plan, after taking into account the assessment of the Commission.

Article 18 Amendment of Social Climate Plans

1.   Where a Plan is no longer achievable, including relevant milestones and targets, or needs to be significantly adjusted, either in whole or in part, by a Member State because of objective circumstances, in particular because of the actual direct effects of the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC, the Member State concerned shall submit an amended Plan to the Commission in order to include the necessary and duly justified changes. Member States may request technical support, in accordance with Article 11(4), for the preparation of the amended Plan.

2.   The Commission shall assess the amended Plan in accordance with Article 16.

3.   Where the Commission gives a positive assessment of the amended Plan, it shall in accordance with Article 17(1) adopt a decision setting out the reasons for its positive assessment, by means of an implementing act. By way of derogation from Article 17(1), the Commission shall adopt the decision under this paragraph within three months from the date of the submission of the amended Plan by the Member State concerned.

4.   Where the Commission gives a negative assessment of the amended Plan, it shall reject the amended Plan within the period referred to in paragraph 3, after having given the Member State concerned the possibility to present its observations within three months from the date of the communication of the Commission’s assessment of the amended Plan.

5.   By 15 March 2029 each Member State shall assess the appropriateness of its Plan in view of the actual direct effects of the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC. Those assessments shall be submitted to the Commission together with the integrated national energy and climate progress reports pursuant to Article 17 of Regulation (EU) 2018/1999.

6.   In the case of minor adjustments to the Plan, representing an increase or decrease of less than 5 % of a target set out in the Plan, such as minor updates in the measures and investments set out in the Plan, or the correction of clerical errors, a Member State shall notify such changes to the Commission.

Article 19 Commitment of the financial allocation

1.   After the Commission has adopted a positive decision as referred to in Article 17 of this Regulation, it shall in due time conclude an agreement with the Member State concerned constituting an individual legal commitment within the meaning of Regulation (EU, Euratom) 2018/1046 for the period 2026-2032, without prejudice to Article 30d(4) and Articles 30i and 30k of Directive 2003/87/EC. That agreement shall be concluded at the earliest one year before the year of the start of the auctions under Chapter IVa of Directive 2003/87/EC, or two years before that year, in cases where Article 10(1), third subparagraph, of this Regulation applies.

2.   Budgetary commitments may be based on global commitments and, where appropriate, may be broken down into annual instalments spread over several years.

Article 20 Rules on payments, suspension and termination of agreements regarding financial allocations

1.   Payments of financial allocations under this Article to the Member State shall be made upon achievement of the relevant agreed milestones and targets indicated in the Plan, as approved in accordance with Article 17, and subject to the availability of funding. Upon such achievement, the Member State shall submit to the Commission a duly reasoned payment request. The Member State shall submit such payment requests to the Commission once or twice a year, by 31 July or by 31 December.

2.   Upon receiving a payment request from a Member State, the Commission shall assess whether the relevant milestones and targets set out in the Commission decision referred to in Article 17 have been satisfactorily achieved. The satisfactory achievement of milestones and targets shall presuppose that measures related to previously satisfactorily achieved milestones and targets have not been reversed by the Member State concerned.

3.   Where the Commission makes a positive assessment of an individual payment request, it shall adopt an individual decision authorising the disbursement of the financial allocation in accordance with Regulation (EU, Euratom) 2018/1046, subject to the availability of funding and ensuring the equal treatment of Member States. The Commission shall adopt the individual decision not earlier than two months and not later than three months after the relevant deadline for submission of the payment request in accordance with paragraph 1 of this Article.

4.   Where, as a result of the assessment referred to in paragraph 3 of this Article, the Commission establishes that the milestones and targets set out in the Commission decision referred to in Article 17 have not been satisfactorily achieved, the payment of the part of the financial allocation proportional to the unachieved target or milestone shall be suspended. The Member State may present its observations within one month of the communication of the Commission’s assessment.

The suspension shall only be lifted where the milestones and targets have been satisfactorily achieved as set out in the Commission decision referred to in Article 17.

5.   By way of derogation from Article 116(2) of Regulation (EU, Euratom) 2018/1046, the payment deadline shall start running from the date of the communication of the Commission’s decision authorising the disbursement of the financial allocation to the Member State concerned pursuant to paragraph 3 of this Article, or from the date of the communication of the lifting of a suspension pursuant to paragraph 4, second subparagraph, of this Article.

6.   Where the milestones and targets have not been satisfactorily achieved within a period of nine months from the suspension referred to in paragraph 4, first subparagraph, the Commission shall reduce the amount of the financial allocation proportionately after having given the Member State the possibility to present its observations within two months from the communication of its conclusions as to the achievement of the milestones and targets.

7.   Where, within 15 months from the date of the conclusion of relevant agreements referred to in Article 19, no tangible progress has been made in respect of any relevant milestones and targets by the Member State, the Commission shall terminate those agreements and shall decommit the amount of the financial allocation without prejudice to Article 14(3) of Regulation (EU, Euratom) 2018/1046. The Commission shall take a decision on the termination of those agreements after having given the Member State the possibility to present its observations within a period of two months of the communication of the assessment by the Commission that no tangible progress has been made.

8.   All payments shall be made by 31 December 2033.

9.   By way of derogation from Article 116 of Regulation (EU, Euratom) 2018/1046 and paragraph 5 of this Article, if, in a given round of payment requests as referred to in paragraph 1 of this Article, the revenue assigned to the Fund in accordance with Article 30d(4) of Directive 2003/87/EC is not sufficient to cover the submitted payment requests, the Commission shall pay the Member States on a pro-rata basis determined as a share of the payment availabilities to the total approved payments. In the following round of payment requests, the Commission shall give priority to those Member States with delayed payments from the previous round of payment requests, and only later to the newly submitted payment requests.

10.   By way of derogation from Article 12(4), point (c), of Regulation (EU, Euratom) 2018/1046 and without prejudice to Article 30d(4), sixth subparagraph, of Directive 2003/87/EC, the Commission shall allocate to Member States the amounts corresponding to any appropriations that are unused by 31 December 2033 in accordance with the rules for distribution of allowances defined under Article 30d(5) of Directive 2003/87/EC in order to achieve the objectives referred to in Article 3 of this Regulation.

Article 21 Protection of the financial interests of the Union

1.   The Member States, when implementing the Plans, as beneficiaries of funds under the Fund, shall take all the appropriate measures to protect the financial interests of the Union and to ensure that the use of the financial allocations in relation to measures and investments supported by the Fund, including those carried out by public or private entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users in accordance with Article 9, complies with applicable Union and national law, in particular regarding the prevention, detection and correction of fraud, corruption and conflicts of interests. To that effect, the Member States shall provide an effective and efficient internal control system as further set out in Annex III and the recovery of amounts wrongly paid or incorrectly used. Member States may rely on their regular national budget management systems.

2.   The agreements referred to in Article 19 shall provide for the following obligations of the Member States:

(a)

to regularly check that the financing provided has been properly used in accordance with all applicable rules and that any measure or investment under the Plan has been properly implemented in accordance with all applicable rules, in particular regarding the prevention, detection and correction of fraud, corruption and conflicts of interests;

(b)

to take appropriate measures to prevent, detect and correct fraud, corruption, and conflicts of interests as defined in Article 61 of Regulation (EU, Euratom) 2018/1046 affecting the financial interests of the Union and to take legal action to recover funds that have been misappropriated, including in relation to any measure or investment implemented under the Plan;

(c)

to accompany a payment request by:

(i)

a management declaration that the financial allocations were used for its intended purpose, that the information submitted with the payment request is complete, accurate and reliable and that the internal control systems put in place give the necessary assurances that the financial allocations were managed in accordance with all applicable rules, in particular rules on avoidance of conflicts of interests, fraud prevention, corruption and double funding from the Fund and other Union programmes in accordance with the principle of sound financial management; and

(ii)

a summary of the audits carried out in accordance with internationally accepted audit standards, including the scope of those audits in terms of amount of spending covered and period of time covered and an analysis of the weaknesses identified and any corrective action taken;

(d)

for the purpose of audit and control and to provide for comparable information on the use of financial allocations in relation to measures and investments implemented under the Plan, to collect, record and store in an electronic system and ensure access to the following standardised categories of data:

(i)

name of the final recipients of the financial allocations, their VAT registration numbers or tax identification numbers and amount of the financial allocations from the Fund;

(ii)

name of the contractor(s) and sub-contractor(s) and their VAT registration number(s) or tax identification number(s) and value of the contract(s) where the final recipient of the financial allocations is a contracting authority in accordance with Union or national law on public procurement;

(iii)

first name(s), last name(s), date(s) of birth and VAT registration number(s) or tax identification number(s), of beneficial owner(s) of the recipient of the financial allocations or contractor, as defined in Article 3, point (6), of Directive (EU) 2015/849 of the European Parliament and of the Council  ( 33 ) ;

(iv)

a list of any measures and investments implemented under the Fund with the total amount of public funding of those measures and investments and indicating the amount of funds paid under other funds financed from the Union budget;

(e)

to expressly authorise the Commission, OLAF, the Court of Auditors and, in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, the EPPO, to exert their rights as provided for in Article 129(1) of Regulation (EU, Euratom) 2018/1046 and to impose obligations on all final recipients of the financial allocations paid for implementing the measures and investments included in the Plan, or to all other persons or entities involved in their implementation to expressly authorise the Commission, OLAF, the Court of Auditors and, where applicable, EPPO to exert their rights as provided for in Article 129(1) of Regulation (EU, Euratom) 2018/1046 and to impose similar obligations on all final recipients of funds disbursed;

(f)

to keep records in accordance with Article 132 of Regulation (EU, Euratom) 2018/1046, the point of reference being the payment transaction relevant to the respective measure or investment.

The information referred to in point (d)(ii) of the first subparagraph of this Article shall be required only where the value of public procurement is greater than the Union thresholds set out in Article 4 of Directive 2014/24/EU of the European Parliament and of the Council  ( 34 ) . Regarding subcontractors, that information shall be required only:

(a)

for the first level of sub-contracting;

(b)

where that information is recorded regarding the respective contractor; and

(c)

for sub-contracts with a total value greater than EUR 50 000.

3.   Personal data as referred to in paragraph 2, point (d), of this Article shall be processed by Member States and by the Commission for the purpose, and corresponding duration, of discharge, audit and control proceedings, and information, communication and visibility activities, related to the use of financial allocations related to the implementation of the agreements referred to in Article 19. The personal data shall be processed in accordance with Regulation (EU) 2016/679 or Regulation (EU) 2018/1725, whichever is applicable. Within the framework of the discharge procedure to the Commission, in accordance with Article 319 TFEU, the Fund shall be subject to reporting under the integrated financial and accountability reporting referred to in Article 247 of Regulation (EU, Euratom) 2018/1046, and, in particular, separately in the annual management and performance report.

4.   The agreements referred to in Article 19 shall also provide for the right of the Commission to reduce proportionately the support under the Fund and recover any amount due to the Union budget, in cases of fraud, corruption, and conflict of interests affecting the financial interests of the Union that have not been corrected by the Member State, or a serious breach of an obligation resulting from such agreements.

When deciding on the amount of the recovery and reduction the Commission shall respect the principle of proportionality and shall take into account the seriousness of the fraud, corruption and conflict of interests affecting the financial interests of the Union, or of a breach of an obligation. The Commission shall give the Member State the opportunity to present its observations before the reduction is made.

Article 22 Coordination and complementarity

The Commission and the Member States concerned shall, in a manner commensurate to their respective responsibilities, foster synergies and ensure effective coordination between the Fund and the Union programmes and instruments referred to in Article 6(3) of this Regulation, and the Modernisation Fund under Article 10d of Directive 2003/87/EC. For that purpose, they shall:

(a)

ensure complementarity, synergy, coherence and consistency among different instruments at Union, national and, where appropriate, local or regional levels, both in the planning phase and during implementation;

(b)

optimise mechanisms for coordination to avoid duplication of effort; and

(c)

ensure close cooperation between those responsible for implementation and control at Union, national and, where appropriate, local or regional levels to achieve the objectives of the Fund.

Article 23 Information, communication and visibility

1.   Member States shall make the data referred to in Article 21(2), point (d)(i), (ii) and (iv), of this Regulation publicly available and keep them up to date on a single website in open, machine-readable formats, as set out in Article 5(1) of Directive (EU) 2019/1024 of the European Parliament and of the Council  ( 35 ) , which shall allow data to be sorted, searched, extracted, compared and reused. The information referred to in Article 21(2), points (d)(i) and (ii), of this Regulation shall not be published in the cases referred to in Article 38(3) of Regulation (EU, Euratom) 2018/1046 or in the case of temporary direct income support to vulnerable households.

2.   The recipients of support from the Fund shall be informed of the origin of those funds, including where they benefit from those funds through intermediaries. That information shall include the emblem of the Union and an appropriate funding statement that reads ‘funded by the European Union – Social Climate Fund’ on documents and communication material relating to the implementation of the measure intended for the recipients. The recipients of support from the Fund, except the support for natural persons or where there is risk of commercially sensitive information being made public, shall ensure the visibility of the Union funding, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.

3.   The Commission shall implement information and communication actions relating to the Fund, to actions taken pursuant to this Regulation and to the results obtained, including, where appropriate and with the agreement of the national authorities, through joint communication activities with the national authorities and the representation offices of the European Parliament and of the Commission in the Member State concerned.

Article 24 Monitoring of implementation

1.   Each Member State shall, on a biennial basis, report to the Commission on the implementation of its Plan together with its integrated national energy and climate progress report pursuant to Article 17 of Regulation (EU) 2018/1999 and in accordance with Article 28 thereof. The monitoring of implementation shall be targeted and proportionate to the activities carried out in the Plan. The Member States shall include the indicators set out in Annex IV to this Regulation in their progress report.

2.   The Commission shall monitor the implementation of the Fund and measure the achievement of its objectives. The monitoring of implementation shall be targeted and proportionate to the activities carried out under the Fund.

3.   The performance reporting system of the Commission shall ensure that data for monitoring the implementation of the activities and results are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of support from the Fund.

4.   The Commission shall use the common indicators set out in Annex IV for reporting on the progress and for the purpose of monitoring and evaluation of the Fund towards the achievement of the objectives set out in Article 3.

Article 25 Transparency

1.   The Commission shall transmit the Plans submitted by Member States and the decisions, as made public by the Commission, simultaneously and on equal terms to the European Parliament and the Council without undue delay.

2.   Information transmitted by the Commission to the Council in the context of this Regulation or its implementation shall simultaneously be made available to the European Parliament, subject to confidentiality arrangements if necessary.

3.   The competent committees of the European Parliament may invite the Commission to provide information on the state of play of the assessment by the Commission of the Plans.

Article 26 Social climate dialogue

1.   In order to enhance the dialogue between the Union institutions, in particular the European Parliament and the Commission, and to ensure greater transparency and accountability, the competent committees of the European Parliament may invite the Commission twice a year to discuss the following matters:

(a)

the Plans submitted by Member States;

(b)

the assessment by the Commission of the Plans submitted by Member States;

(c)

the status of achievement of the milestones and targets set out in the Plans submitted by Member States;

(d)

payment, suspension and termination procedures, including any observation presented and remedial measures taken by Member States to ensure the satisfactory achievement of the milestones and targets set out in the Plans submitted by them.

2.   The Commission shall take account of any elements arising from the views expressed through the social climate dialogue, including the resolutions of the European Parliament if provided.

Article 27 Evaluation and review of the Fund

1.   Two years after the start of the implementation of the Plans, the Commission shall provide the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions with an evaluation report on the implementation and functioning of the Fund, taking into account the results of the first reports submitted by Member States in accordance with Article 24, and shall submit, where appropriate, any proposals for amendments to this Regulation.

2.   The evaluation report referred to in paragraph 1 shall, in particular, assess:

(a)

the extent to which the objectives of the Fund set out in Article 3 have been achieved, the efficiency of the use of the resources and the Union added value;

(b)

on a country-by-country basis, the efficiency of measures and investments and the use of the direct income support in light of the achievement of the milestones and targets set out in the Plans;

(c)

how the definitions of energy poverty and transport poverty are applied in Member States, based on the information referred to in Article 6(1), point (f), as well as whether amendments to such definitions are necessary;

(d)

the continued relevance of all objectives, and measures and investments set out in Article 8 of this Regulation in light of the impact on greenhouse gas emissions of the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC and of the national measures taken to meet the binding annual greenhouse gas emission reductions by Member States pursuant to Regulation (EU) 2018/842 of the European Parliament and of the Council  ( 36 ) , as well as the continued relevance of the assigned revenues in relation to possible developments concerning the auctioning of allowances under the emission trading system for buildings, road transport and additional sectors pursuant to Chapter IVa of Directive 2003/87/EC and other relevant considerations.

3.   By 31 December 2033, the Commission shall provide the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions with an independent ex post evaluation report. The ex post evaluation report shall consist of a global assessment of the Fund and shall include information on its impact.

4.   Without prejudging the multiannual financial framework post 2027, in the event revenue generated from the auctioning of allowances referred to in Article 30d(5) of Directive 2003/87/EC is established as an own resource in accordance with Article 311(3) TFEU, the Commission shall, as appropriate, present the necessary proposals in order to ensure, within the framework of the multiannual financial framework post 2027, the effectiveness and continuity of the implementation of the Fund, which is temporarily and exceptionally financed by external assigned revenue generated from allowances of the emission trading system.

Article 28 Amendment to Regulation (EU) 2021/1060

The following Article is inserted in Regulation (EU) 2021/1060:

‘Article 26a

Resources transferred from the Social Climate Fund

1.   Resources transferred from the Social Climate Fund, established by Regulation (EU) 2023/955 of the European Parliament and of the Council  ( *1 ) shall be implemented in accordance with this Regulation and the provisions governing the Fund to which the resources are transferred and shall be definitive. Such resources shall constitute external assigned revenue for the purpose of Article 21(5) of Regulation (EU, Euratom) 2018/1046 and shall be additional to the resources referred to in Article 110 of this Regulation.

2.   Where Member States implement the resources referred to in paragraph 1 of this Article under shared management, they shall submit programme amendments in accordance with Article 24 of this Regulation concerning one or more programmes. Member States shall plan the use of such resources for achieving the climate objectives set out for the Union budget in accordance with Article 6(1) of this Regulation. Those resources shall contribute to achieving relevant objectives of the Social Climate Fund as set out in Article 3 of Regulation (EU) 2023/955 and shall be used to support measures and investments set out in Article 8 of that Regulation. They shall be programmed under one or more dedicated priorities corresponding to one or more specific objectives of the Fund to which the resources are transferred and for one or more categories of regions, where applicable, with an indication of the yearly breakdown of resources. They shall not be taken into account for the calculation of compliance with thematic concentration requirements as set out in Fund-specific rules.

3.   Where the Commission has already approved a Member State’s request for an amendment of a programme relating to a transfer of resources from the Social Climate Fund, for any further transfer of resources in subsequent years, the Member State may submit a notification of financial tables instead of an amendment of a programme, provided that the proposed changes relate exclusively to an increase of the financial resources, without any further changes to the programme.

4.   By way of derogation from Article 18 and Article 86(1), second subparagraph, of this Regulation, the resources transferred in accordance with this Article and Article 11(2) of Regulation (EU) 2023/955 shall not be taken into account for the mid-term review and the flexibility amount.

5.   By way of derogation from Article 14(3) of Regulation (EU, Euratom) 2018/1046, the time limit after which the Commission shall decommit the amounts in accordance with Article 105(1) of this Regulation shall start from the year in which the corresponding budgetary commitments are made. Resources shall not be transferred to programmes under the European territorial cooperation goal (Interreg).

Article 29 Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union .

It shall apply from 30 June 2024, the date by which the Member States are to bring into force the laws, regulations and administrative provisions necessary to comply with Directive (EU) 2023/959 of the European Parliament and of the Council  ( 37 ) amending Directive 2003/87/EC as regards Chapter IVa of Directive 2003/87/EC.

Schedules & Appendices

ANNEX I

ANNEX I

METHODOLOGY FOR THE CALCULATION OF THE MAXIMUM FINANCIAL ALLOCATION FOR EACH MEMBER STATE UNDER THE FUND PURSUANT TO ARTICLE 14

This Annex sets out the methodology for calculating the maximum financial allocation available for each Member State in accordance with Articles 10 and 14.

The methodology takes into account the following variables with regard to each Member State:

—

population at risk of poverty living in rural areas (2019);

—

carbon dioxide emissions from fuel combustion by households (2016-2018 average);

—

the percentage of households at risk of poverty with arrears on their utility bills (2019);

—

total population (2019);

—

the Member State’s gross national income (GNI) per capita, measured in purchasing power standard (2019);

—

the share of reference emissions under Article 4(2) of Regulation (EU) 2018/842 for the emission sources 1A3b, 1A4a and 1A4b, as established in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (2016-2018 average), as comprehensively reviewed pursuant to Article 4(3) of that Regulation.

The maximum financial allocation of a Member State under the Fund (MFAi) is established as follows:

Where:

The maximum amount (MA) for the implementation of the Fund is as referred to in Article 10(1) and α

i

is the share of Member State i in the maximum amount, determined on the basis of the following steps:

With

fi = 1 if

; fi = 2,5 if

Where for each Member State i:

rural pop

i

is the population at risk of poverty living in rural areas of the Member State i;

rural pop

EU

is the sum of population at risk of poverty living in rural areas of the Member States of the EU-27;

pop

i

is the population of the Member State i;

pop

EU

is the sum of the population of the Member States of the EU-27;

HCO 2

i

is the carbon dioxide emissions from fuel combustion by households of the Member State i;

HCO 2

EU

is the sum of carbon dioxide emissions from fuel combustion by households of the Member States of the EU-27;

arrears

i

is the percentage of households at risk of poverty with arrears on utility bills of the Member State i;

arrears

EU

is the percentage of households at risk of poverty with arrears on utility bills of the EU-27;

is the GNI per capita of the Member State i;

is the GNI per capita of the EU-27.

The βi of those Member States with a GNI per capita below the EU-27 value and for which the

is the minimum component are proportionally adjusted to ensure that the sum of βi for all Member States equals 100 %. All λi are proportionally adjusted to ensure that their sum equals 100 %.

For all Member States, α

i

cannot be lower than 0,07 % of the maximum amount as referred to in Article 10(1). The α

i

of all Member States with α

i

higher than 0,07 % are proportionally adjusted to ensure that the sum of all α

i

equals 100 %.

For the Member States with a GNI per capita below 90 % of the EU-27 value, α

i

cannot be lower than the share of reference emissions under Article 4(2) of Regulation (EU) 2018/842 for the emission sources 1A3b, 1A4a and 1A4b, as established in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories for the average of the period 2016-2018, as comprehensively reviewed pursuant to Article 4(3) of that Regulation. The α

i

of the Member States with a GNI per capita above the EU-27 value are proportionally adjusted to ensure that the sum of all α

i

equals 100 %.

ANNEX II

ANNEX II

Maximum financial allocation for each Member State under the Fund pursuant to Articles 10 and 14

The application of the methodology in Annex I to the amounts referred to in Article 10(1) results in the following share and maximum financial allocation for each Member State.

Any amounts pertaining from Article 10(3) will be covered within the limits of the maximum financial allocation for each Member State on a pro rata basis.

Maximum financial allocation per Member State

Member State

Share as % of total

TOTAL

2026-2032

(in EUR, current prices)

Pursuant to Article 10(1), first and second subparagraphs

Pursuant to Article 10(1), third subparagraph

Belgium

2,55

1 659 606 425

1 394 069 397

Bulgaria

3,85

2 499 490 282

2 099 571 836

Czechia

2,40

1 562 617 717

1 312 598 882

Denmark

0,50

324 991 338

272 992 724

Germany

8,18

5 317 778 511

4 466 933 949

Estonia

0,29

186 244 570

156 445 439

Ireland

1,02

663 390 868

557 248 329

Greece

5,52

3 586 843 608

3 012 948 631

Spain

10,52

6 837 784 631

5 743 739 090

France

11,19

7 276 283 944

6 112 078 513

Croatia

1,94

1 263 071 899

1 060 980 395

Italy

10,81

7 023 970 924

5 900 135 577

Cyprus

0,20

131 205 466

110 212 591

Latvia

0,71

463 676 528

389 488 284

Lithuania

1,02

664 171 367

557 903 948

Luxembourg

0,10

66 102 592

55 526 177

Hungary

4,33

2 815 968 174

2 365 413 267

Malta

0,07

45 500 000

38 220 000

Netherlands

1,11

720 463 632

605 189 451

Austria

0,89

578 936 189

486 306 399

Poland

17,60

11 439 026 446

9 608 782 215

Portugal

1,88

1 223 154 017

1 027 449 374

Romania

9,25

6 012 677 290

5 050 648 923

Slovenia

0,55

357 971 733

300 696 256

Slovakia

2,35

1 530 553 074

1 285 664 582

Finland

0,54

348 132 328

292 431 155

Sweden

0,62

400 386 447

336 324 616

EU27

100  %

65 000 000 000

54 600 000 000

ANNEX III

ANNEX III

Key requirements for the Member State’s internal control system

1.

The Member State shall provide an effective and efficient internal control system, in accordance with its institutional, legal and financial framework, including separation of functions and reporting, supervising and monitoring arrangements.

This includes:

(a)

the designation of the authorities entrusted with the implementation of the Plan and the allocation of the related responsibilities and functions;

(b)

the designation of the authority or authorities responsible for signing the management declaration accompanying the payment requests;

(c)

procedures ensuring that this authority or these authorities will get assurance about the achievement of the milestones and targets set in the Plan, and that the funds were managed in accordance with all applicable rules, in particular rules on avoidance of conflicts of interests, fraud prevention, corruption and double funding;

(d)

an appropriate separation between managing and audit functions.

2.

The Member State shall conduct an effective implementation of proportionate anti-fraud and anti-corruption measures, as well as any necessary measure to effectively avoid conflict of interests.

This includes:

(a)

appropriate measures related to the prevention, detection and correction of fraud, corruption and conflict of interests, as well as avoidance of double funding and to take legal actions to recover funds that have been misappropriated;

(b)

a fraud risk assessment and the definition of appropriate anti-fraud mitigating measures.

3.

The Member State shall maintain appropriate procedures for drawing up the management declaration and summary of the audits carried out at national level.

This includes:

(a)

an effective procedure for drawing up the management declaration, documenting the summary of audits and keeping the underlying information for audit trail;

(b)

effective procedures to ensure that all cases of fraud, corruption and conflict of interests are properly reported and corrected through recoveries.

4.

To provide the information necessary, the Member State shall ensure appropriate management verifications, including procedures for checking the achievement of milestones and targets and compliance with horizontal principles of sound financial management.

This includes:

(a)

appropriate management verifications through which implementing authorities will check the achievement of milestones and targets of the fund (e.g. desk reviews, on-the-spot checks);

(b)

appropriate management verifications through which the implementing authorities will check the absence of serious irregularities, namely fraud, corruption and conflict of interests, and double funding (e.g. desk reviews, on-the-spot checks).

5.

The Member State shall conduct adequate and independent audits of systems and operations in accordance with internationally accepted audit standards.

This includes:

(a)

the designation of the body or bodies which will carry out the audits of systems and operations and how their functional independence is ensured;

(b)

the allocation of sufficient resources to this body or bodies for the purpose of the Fund;

(c)

the effective tackling by the body or bodies of the risk of fraud, corruption, conflict of interests and double funding both through system audits and audits of operations.

6.

The Member State shall maintain an effective system to ensure that all information and documents necessary for audit trail purposes are held.

This includes:

(a)

effective collection, recording and storage in an electronic system of data on the final recipients of measures or investments necessary to achieve the milestones and targets;

(b)

access for the Commission, OLAF, European Court of Auditors and in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, the EPPO, to the data on final recipients.

ANNEX IV

ANNEX IV

Common indicators for indicative milestones and targets for the Social Climate Plans of the Member States referred to in Article 6(1), point (m), monitoring by the Member State of the implementation of its Plan referred to in Article 24(1), evaluation by the Commission of the progress towards the objectives of the Fund referred to in Article 24(4)

Measures and investments can contribute to several of the common indicators. If a Member State’s Plan does not contain a measure or investment contributing to some of the indicators, a Member State may indicate ‘non-applicable’.

Number

Common indicator related to the Fund support

Explanation

Unit

Buildings sector

Context indicators

1

Number of vulnerable households

In line with the definition in Article 2, point (10).

Number of households

2

Number of households in energy poverty

In line with the definition in Article 2, point (1).

Number of households

Output indicators

3

Number of vulnerable households that have benefitted from at least one structural measure reducing their emissions in the buildings sector

In line with Article 2, point (10) and Article 8(1). Only measures due to Fund support.

Number of households

4

Number of buildings having undergone deep renovation (i.e. a renovation which transforms a building or building unit (a) before 1 January 2030, into a nearly zero-energy building (b) as of 1 January 2030, into a zero-emission building)

The indicator counts the number of buildings and the corresponding floor area being renovated fully or partially based on the support by measures and investments under the Fund, where ‘building renovation’ is defined in Article 2, point (13). In addition, the indicator shall distinguish buildings on the basis of their Energy Performance Certificate class, and identify specifically how many worst-performing buildings have been renovated.

Buildings units

5

Total useful floor area of buildings having undergone deep renovation (i.e. a renovation which transforms a building or building unit (a) before 1 January 2030, into a nearly zero-energy building (b) as of 1 January 2030, into a zero-emission building)

Renovated floor area (m2/year)

6

Number of buildings having undergone other energy renovation (i.e. all energy renovations except deep renovations, to be reported above)

Buildings units

7

Total useful floor area of buildings having undergone other energy renovation (i.e. all energy renovations except deep renovations, to be reported above)

Renovated floor area (m2/year)

8

Replacement of fossil fuel heating installation with a renewable based appliance and/or a highly efficient installation on the basis of the Energy Label class as established in the relevant legal act.

These actions fulfil the renewable EU benchmark and the indicative share of renewable energy (in final energy consumption) established at national level in the buildings sector under the relevant provision of Directive (EU) 2018/2001. Renewable heating and cooling systems and renewable electricity both can contribute to this benchmark. These actions would also contribute to the renewable heating and cooling target under the relevant provision of that Directive. This concerns only additional replacements of fossil fuel heating installations due to Fund support.

Number of units of fossil fuel heating installation replaced (e.g. by a heat pump or solar thermal installation)

9

Additional operational capacity installed for renewable energy

Number and capacity of rooftop photovoltaic and solar thermal collectors or photovoltaic thermal panels (PVT); number and capacity of heat pumps; number and capacity of other renewable space heating and cooling technologies including renewable based boilers. Only concerns additional operational capacity due to Fund support.

MW

10

number of units

Result indicators

11

Reduction of number of vulnerable households

Reduction of number of vulnerable households as a result of measures and investments financed under the Fund.

%

12

Estimated reduction in greenhouse gas emissions in the buildings sector

Reduction in greenhouse gas emissions in the buildings sector triggered by measures and investments financed under the Fund.

The emissions in the buildings sector are established as those covered by Chapter IVa of Directive 2003/87/EC (for the buildings sector, emission sources 1A4a and 1A4b, as established in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories).

ktCO2e

13

Reduction of number of households in energy poverty

Reduction of number of households in energy poverty as a result of measures and investments financed under the Fund.

Member States concerned by Article 3(3), point (d), of Regulation (EU) 2018/1999 shall include, pursuant to Article 24, point (b) of that Regulation, in their integrated national energy and climate progress report quantitative information on the number of households in energy poverty. Member States may use and are not limited to the indicators available with the Statistical Office of the European Union (Eurostat) identified as relevant in Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty  ( 1 ) , listed in the reporting template for integrated national energy and climate progress reports.

The indicator does not count collective dwellings such as hospitals, care homes, prisons, military barracks, religious institutions, boarding houses, workers’ hostels, etc.

%

14

Savings in annual primary energy consumption

The energy savings achieved shall be calculated, for this purpose, only on the basis of the financial support from the Fund.

Member States shall report on the annual final/primary energy consumption reduction achieved among vulnerable households, people affected by energy poverty and, where applicable, people living in social housing pursuant to of the relevant provisions of the Directive of the European Parliament and of the Council on energy efficiency (recast) due to Fund support that is complementary to the Energy Efficiency National Fund under the relevant provisions of that Directive, including the support channelled through energy efficiency obligation schemes and alternative policy measures pursuant to the relevant provision of that Directive and including interventions made to comply with minimum energy performance standards pursuant to the relevant provisions of that Directive.

MWh/year

15

kWh/m2 (if total floor area is available)

16

Savings in annual final energy consumption

The baseline refers to the annual final and primary energy consumption before the intervention, and the achieved value refers to the annual final and primary energy consumption for the year after the intervention.

Energy savings in individual buildings shall be documented on the basis of Energy Performance Certificates or other criteria for determining the targeted or achieved energy savings set out in the relevant provision of the Directive of the European Parliament and of the Council on the energy performance of buildings (recast).

kWh/m2 (if total floor area is available)

17

MWh/year

Road transport sector

Context indicators

18

Number of vulnerable transport users

In line with the definition in Article 2, point (12).

Number of households

19

Number of households in transport poverty

In line with the definition in Article 2, point (2).

Number of households

Output indicators

20

Number of vulnerable transport users that have benefitted from at least one structural measure reducing their emissions in the road transport sector

In line with Article 2, point (12) and Article 8(1). Only measures due to Fund support.

Number of households

21

Purchases of zero-emission vehicles

Number of zero-emission vehicles supported by measures and investments financed under the Fund.

Number of zero-emission vehicles

22

Purchases of low-emission vehicles

Number of low-emission vehicles supported by measures and investments financed under the Fund.

Number of low-emission vehicles

23

Purchases of bicycles and micro-mobility vehicles

Number of bicycles and micro-mobility vehicles supported by measures and investments financed under the Fund.

Number of bicycles and micro-mobility vehicles

24

Additional alternative fuels infrastructure (refuelling/recharging points)

Number of refuelling and recharging points (new or upgraded) for zero- and low- emission vehicles supported by measures and investments financed under the Fund, with an additional focus on remote areas.

The terms ‘alternative fuel’, ‘recharging point’ and ‘refuelling point’ shall have the same meaning as the definitions of these terms in Regulation of the European Parliament and of the Council on the deployment of alternative fuels infrastructure, and repealing Directive 2014/94/EU of the European Parliament and of the Council.

The indicator shall be collected and reported separately for (i) recharging points; and (ii) refuelling points.

As part of the latter, (iii) hydrogen refuelling points shall be reported separately.

Number of refuelling and recharging points

25

Reduced or free public transport tickets

Number of users of public transport supported by measures and investments financed under the Fund.

The indicator shall be collected and reported separately between (i) reduced; and (ii) free tickets.

Number of users

26

Additional shared mobility and mobility on demand solutions

Number of users of shared mobility and mobility on demand solutions supported by measures and investments financed under the Fund.

Number of users

27

Units

28

Dedicated cycling infrastructure supported

Length of dedicated cycling infrastructure newly built or significantly upgraded by projects supported under the Fund. Dedicated cycling infrastructure includes cycling facilities separated from roads for vehicular traffic or other parts of the same road by structural means (such as kerbs and barriers), cycling streets, cycling tunnels, etc. For cycling infrastructure with separated one-way lanes (e.g. on each side of a road), the length is measured as lane length.

Number of km

Result indicators

29

Reduction of number of vulnerable transport users

Reduction of number of vulnerable transport users as a result of measures and investments financed under the Fund.

%

30

Reduction of number of households in transport poverty

Reduction of number of households in transport poverty as a result of measures and investments financed under the Fund.

%

31

Reduction in greenhouse gas emissions in the road transport sector

Member States shall report on the reduction in greenhouse gas emissions in the road transport sector triggered by measures and investments financed under the Fund.

The emissions in the road transport sector are defined as those covered by Chapter IVa of Directive 2003/87/EC (for the road transport sector, emission sources 1A3b as established in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories).

ktCO2e

Micro-enterprises (both buildings and road transport sectors)

Context indicators

32

Number of vulnerable micro-enterprises

In line with the definition in Article 2, point (11).

Number of micro-enterprises

Output indicators

33

Number of vulnerable micro-enterprises that have benefitted from at least one structural measure reducing their emissions in the buildings sector and road transport sector

In line with Article 2, point (11), and Article 8(1). Only measures due to Fund support.

Number of micro-enterprises

Result indicators

34

Reduction of number of vulnerable micro-enterprises

Reduction of number of vulnerable micro-enterprises as a result of measures and investments financed under the Fund.

%

Temporary direct income support

Context indicators

35

Share of the temporary direct income support in the total costs of the Social Climate Plans

In line with Article 4(3) and Article 10.

%

Output indicators

36

Number of vulnerable households and vulnerable transport users that have received temporary direct income support

The indicator shall indicate the number of vulnerable households and vulnerable transport users that have received temporary direct income support, hence counting all final recipients of the temporary direct income support paid under the Fund.

The indicator shall be collected and reported separately for vulnerable households and for the vulnerable transport users, in line with Article 2, points (10) and (12) and Article 4(3).

Number of vulnerable households

(unit: households)

37

Number of vulnerable transport users

(unit: households)

Result indicators

38

Average temporary direct income support per vulnerable household and vulnerable transport user

The indicator shall indicate the average amount of temporary direct income support received per vulnerable household and vulnerable transport user under the Fund.

EUR/household (buildings sector)

39

EUR/household (road transport sector)

( 1 )

OJ L 357, 27.10.2020, p. 35 .

ANNEX V

ANNEX V

Template for Social Climate Plans referred to in Article 6(7)

Table of Contents

1.

OVERVIEW AND PROCESS FOR ESTABLISHING THE SOCIAL CLIMATE PLAN

43

1.1.

Executive summary

43

1.2.

Overview of current policy situation

43

1.3.

Public consultation process

43

2.

DESCRIPTION OF THE MEASURES AND INVESTMENTS, MILESTONES AND TARGETS

44

2.1.

COMPONENT [1][2]: [buildings sector][transport sector]

44

(i)

Description of the component

44

(ii)

Description of the measures and investments of the component

44

(iii)

Do no significant harm

44

(iv)

Milestones, targets and timeline

45

(v)

Financing and costs

45

(vi)

Justification for benefitting entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users (if applicable)

45

(vii)

Estimated total costs of the component

46

(viii)

Scenario in the event of a later start of the emissions trading system

46

2.2.

COMPONENT [3]: direct income support

46

(i)

Description of the component

46

(ii)

Description of the measures of the component

46

(iii)

Milestones and targets for direct income support measures

47

(iv)

Justification for the measures

47

(v)

Costs of the measures

47

(vi)

Justification for benefitting entities other than vulnerable households and vulnerable transport users (if applicable)

47

(vii)

Estimated cost of the Plan for temporary direct income support component.

48

(viii)

Scenario in the event of a later start of the emissions trading system

48

2.3.

Technical assistance

48

2.4.

Transfers to shared management programmes

48

2.5.

Estimated total costs of the Plan

48

3.

ANALYSIS AND OVERALL IMPACT

49

3.1.

Definitions

49

3.2.

Projected impact on vulnerable groups

49

3.3.

Projected impact of the planned measures and investments

49

4.

COMPLEMENTARITY, ADDITIONALITY AND IMPLEMENTATION OF THE PLAN

50

4.1.

Monitoring and implementation of the Plan

50

4.2.

Consistency with other initiatives

50

4.3.

Complementarity of funding

50

4.4.

Additionality

50

4.5.

Geographic specificities

51

4.6.

Prevention of corruption, fraud and conflicts of interests

51

4.7.

Information, communication and visibility

51

1.   OVERVIEW AND PROCESS FOR ESTABLISHING THE SOCIAL CLIMATE PLAN

1.1.   Executive summary

The context of the green transition in the Member State with particular emphasis on the main challenges from the social impacts of the inclusion of greenhouse gas emissions from buildings and road transport sectors within the scope of Directive 2003/87/EC and how the Plan will respond to these challenges.

An overview table that sums up the main objectives of the Plan, together with the estimated total costs of the Plan, including the contribution from the Fund, the national contribution and resources from shared management programs to be transferred to the Fund, divided into the three areas of intervention: measures and investments for the buildings sector, for the road transport sector, and measures for direct income support, based on the template below:

Area of intervention

Total costs (absolute and % of total funding) by source of funding

Overview of main measures and investments planned

Objectives of the measures and investments

Impact of measures and investments

Reduction of vulnerable households and vulnerable transport users (unit: households)

CO2 emissions reduction

Buildings sector

Road Transport sector

Temporary direct income support

Technical assistance (Article 8(3))

Contribution to the Technical Support Instrument (Article 11(3))

Contribution to the Member State’s compartment in InvestEU (Article 11(3))

1.2.   Overview of current policy situation

Information on the current national energy and climate policies, how they are being applied in the national context, with a particular focus on buildings and transport sectors and in respect to the most vulnerable groups.

1.3.   Public consultation process

A summary of the consultation process of local and regional authorities, social partners, civil society organisations, youth organisations, and other relevant stakeholders, as implemented in accordance with the national legal framework, for the preparation and, where available implementation of the Plan, covering the scope, type, and timing of consultations activities, as well as how the views of the stakeholders are reflected in the Plan.

2.   DESCRIPTION OF THE MEASURES AND INVESTMENTS, MILESTONES AND TARGETS

Information for each component for the three areas of the Plan separately:

—

buildings sector;

—

road transport sector;

—

temporary direct income support.

A component may include several sub-components focusing on a specific challenge or need. Each component or sub-component may include one or several closely linked or mutually dependent measures or investments.

2.1.   COMPONENT [1][2]: [buildings sector][transport sector]

Information on the component:

(i)   Description of the component

Summary box:

Summary box for Component [1][2] [buildings sector][transport sector]

Intervention area: [buildings sector][transport sector]

Objective:

Measures and investments:

Estimated total costs: EUR xx, of which

Costs requested to be covered under the Fund: EUR xx

Costs to be covered by the national contribution: EUR xx

(ii)   Description of the measures and investments of the component

Detailed description of the component and its specific measures and investments, as well as their interlinkages and synergies, covering the following:

—

Clear and evidence-based analysis of the existing challenges and how they are addressed by the measures and the investments;

—

The nature, type and size of the measure or investment, which may include additional technical support measures in accordance with Article 11(4), indicating whether it is new or is an existing measure or investment intended to be extended with the support from the Fund;

—

Detailed information on the objective of the measure or investment and about who and what is targeted by it; an explanation of how the measure and investment would contribute effectively to the achievement of the objectives of the Fund within the overall setting of a Member State’s relevant policies, and how it will reduce fossil fuel dependency;

—

Description of how the measure or investment is implemented (means of implementation), referring to the administrative capacity of the Member State at central, and where relevant regional and local levels, with an explanation on how the resources will be absorbed in a timely manner and how they are channelled to sub-national levels, if applicable;

—

An explanation of how the measure or investment will aim to address gender inequality, if applicable;

—

The timeline of the measure or investment; for support concerning low-emission vehicles, a timetable for gradually reducing that support.

(iii)   Do no significant harm

Information on how measures and investments included in the component comply with the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852. The Commission will provide technical guidance, pursuant to Article 6(5) of this Regulation.

(iv)   Milestones, targets and timeline

Information on each milestone and target that will reflect the progress on implementing measures and investments of this component, as follows:

—

why the specific milestone or target was chosen;

—

what the milestone or target is measuring;

—

how this will be measured, what methodology and source will be used, and how the proper achievement of the milestone or target will be objectively verified;

—

what is the baseline (starting point) and what is the level or specific point to be reached;

—

by when it will be reached (by quarter and year);

—

who and which institution will be in charge of implementing, measuring and reporting.

Table containing milestones, targets and timeline for the components with the following information:

Seq. number

Measure/Investment name

Milestone or Target

Name of milestone/target

Qualitative indicators

(milestones)

Quantitative indicators (targets)

Timeline for achievement

Description of each milestone and target

Unit of measure/investment

Baseline

Goal

Quarter

Year

(v)   Financing and costs

Information and explanation on the estimated total costs of the component and for each measure and investment, backed up by appropriate justification, including:

—

The methodology used, the underlying assumptions made (e.g. on unit costs, costs of inputs) and justification for these assumptions;

—

The indicative comprehensive timetable within which these costs are expected to be incurred;

—

Information on the national contribution to the total costs of the measures and investments;

—

Any information on what financing from other Union instruments is or could be envisaged related to the same component;

—

Any information on envisaged financing from private sources and which leverage level is targeted, if relevant;

—

Justification on the plausibility and reasonability of the estimated costs, where necessary, taking into account national specificities.

(vi)   Justification for benefitting entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users (if applicable)

If support from the Fund is provided through public or private entities other than vulnerable households, vulnerable micro-enterprises, or vulnerable transport users, an explanation of what measures or investments those entities will enact and how those measures and investments will ultimately be to the benefit of vulnerable households, vulnerable micro-enterprises and vulnerable transport users;

If support from the Fund is provided through financial intermediaries, a description of the measures that the Member State intends to adopt to ensure that financial intermediaries pass on the entire benefit to the final recipients.

(vii)   Estimated total costs of the component

Completion of the table on the estimated cost of measures and investments included in the component, in accordance with the template provided below:

Seq. number

Related measure (measure or investment)

Relevant time period

Estimated costs for which funding from the Fund is requested

Total requested

If available: split by year

From date

To date

Amount (mn EUR)

2026

2027

2028

2029

2030

2031

2032

(viii)   Scenario in the event of a later start of the emissions trading system

A description and quantification of the necessary adjustments to the measures, investments, milestones, targets, the amount of national contribution and any other relevant element of the Plan resulting from the postponement of the start of the emissions trading system established pursuant to Chapter IVa of Directive 2003/87/EC in accordance with Article 30k of that Directive.

A separate version of the summary box, the table on milestones, targets and timeline and the table on estimated costs.

2.2.   COMPONENT [3]: direct income support

Information on the Component for the direct income support:

(i)   Description of the component

Summary box:

Summary box for Component 3 – direct income support

Intervention area: direct income support

Objective:

Measures:

Estimated total costs: EUR xx, of which

Costs requested to be covered under the Fund: EUR xx

Costs to be covered by the national contribution: EUR xx

(ii)   Description of the measures of the component

A detailed description of the component and its specific measures, as well as their interlinkages and synergies, including:

—

Clear and evidence-based analysis of the existing challenges and how they are addressed and the objectives of the support;

—

The nature, type and size of the support;

—

Detailed information on the final recipients of the support and the criteria used for their identification;

—

The timeline for the decrease in direct income support in line with the timeline of the Fund, including a concrete end date for the support;

—

An explanation of how the support will aim to address gender inequality, if applicable;

—

Description of how the support is implemented;

—

Information on the national contribution to the costs of the measures.

(iii)   Milestones and targets for direct income support measures

Information on each milestone and target that will reflect the progress on implementing of this component, as follows:

—

why the specific milestone or target was chosen;

—

what the milestone or target is measuring;

—

how this will be measured, what methodology and source will be used, and how the proper achievement of the milestone or target will be objectively verified;

—

what is the baseline (starting point) and what is the level or specific point to be reached;

—

by when it will be reached;

—

who and which institution will be in charge of implementing, measuring and reporting.

Table containing milestones, targets and timeline for temporary direct income support measures, template provided below:

Seq. number

Measure

Milestone or Target

Name of milestone/target

Qualitative indicators

(milestones)

Quantitative indicators (targets)

Timeline for achievement

Description of each milestone and target

Unit of measure

Baseline

Goal

Quarter

Year

(iv)   Justification for the measures

Justification for the need of temporary direct income support based on the criteria laid out in Articles 6(1) and 8(2):

—

Quantitative estimate and a qualitative explanation of how the measures in the Plan are expected to reduce energy poverty and transport poverty and the vulnerability of households and transport users to an increase of road transport and heating fuel prices;

—

Justification on the proposed timeline of the diminishing temporary direct income support and the conditions when it no longer applies;

—

Description of how the groups of recipients of temporary direct income support are also targeted by structural measures and investments to effectively lift them out of energy poverty and transport poverty, and description of the complementarity of temporary direct income support with structural measures and investments to support vulnerable households and vulnerable transport users.

(v)   Costs of the measures

Information on the estimated total costs of the component, backed up by appropriate justification, including:

—

The methodology used, the underlying assumptions made and justification for these assumptions;

—

The comparative cost data on the actual cost, if similar support measures have been carried out in the past;

—

Any information on what financing from other Union instruments is or could be foreseen related to the same support;

—

Appropriate detailed justification on the plausibility and reasonability of the estimated costs, including any data or evidence used annexed to the Plan.

(vi)   Justification for benefitting entities other than vulnerable households and vulnerable transport users (if applicable)

If the support from the Fund is provided through public or private entities other than vulnerable households, or vulnerable transport users, an explanation what kind of measures those entities will enact and how those measures will ultimately be to the benefit of vulnerable households, or vulnerable transport users.

If support from the Fund is provided through financial intermediaries, a description of the measures that the Member State intends to adopt to ensure that financial intermediaries pass on the entire benefit to the final recipients.

(vii)   Estimated cost of the Plan for temporary direct income support component.

Completion of the table on estimated cost of support included in the component, template provided below:

Seq. number

Type of support

Relevant time period

Estimated costs for which funding from the Fund is requested

Total requested

If available: split by year

From date

To date

Amount (mn EUR)

2026

2027

2028

2029

2030

2031

2032

(viii)   Scenario in the event of a later start of the emissions trading system

A description and quantification of the necessary adjustments to the measures, investments, milestones, targets, the amount of national contribution and any other relevant element of the Plan resulting from the postponement of the start of the emissions trading system established pursuant to Chapter IVa of Directive 2003/87/EC in accordance with Article 30k of that Directive.

A separate version of the summary box, the table on milestones, targets and timeline and the table on estimated costs.

2.3.   Technical assistance

A description of the technical assistance actions that will be included for the effective administration and implementation of the measures and investments set out in the Plan, in accordance with Article 8(3), including:

—

the nature, type and size of the technical assistance actions;

—

the estimated cost of the technical assistance actions.

2.4.   Transfers to shared management programmes

If resources are intended to be transferred from the Fund to funds under shared management pursuant to Article 11(2), indication of which programmes these resources will be transferred to and under which timeline, and indication of how the measures and investments to be implemented under those programmes would comply with the objectives referred to in Article 3, including whether they fall under the measures and investments set out in Article 8.

2.5.   Estimated total costs of the Plan

Estimated total costs of the Plan, including any amounts made available for additional technical support under Article 11(4) of this Regulation, the amount of the cash contribution for the purpose of the Member State compartment pursuant to the relevant provisions of Regulation (EU) 2021/523 and any amount made available for additional technical assistance under Article 8(3) of this Regulation.

An indication of the national contribution to the total costs of its plan, including an indication of any resources intended to be transferred to the Fund from shared management programmes pursuant to Article 11(1) of this Regulation and any resources intended to be transferred from the Fund to shared management programmes pursuant to Article 11(2) of this Regulation.

A description of how the costs are in line with the principle of cost efficiency and commensurate to the expected impact of the Plan.

Completion of the table summarising the cost of the Fund by source of funding, template provided below:

Total costs of Social Climate Plan

Base case

In case of Article 30k Directive 2003/87/EC

ESTIMATED TOTAL COSTS OF THE PLAN,

of which

EUR XXX

EUR XXX

Covered under the Fund

EUR XXX

EUR XXX

National contribution

EUR XXX

EUR XXX

Transfers from shared management programmes

EUR XXX

EUR XXX

(Transfers to shared management programmes)

-EUR XXX

-EUR XXX

3.   ANALYSIS AND OVERALL IMPACT

3.1.   Definitions

An explanation of how the definitions of energy poverty and transport poverty are to be applied at national level.

3.2.   Projected impact on vulnerable groups

An estimate of the likely effects of the increase in prices resulting from the emissions trading system established pursuant to Chapter IVa of Directive 2003/87/EC on households, and in particular on incidence of energy poverty and transport poverty, and on micro-enterprises, comprising in particular an estimated number of, and the identification of, vulnerable households, vulnerable micro-enterprises and vulnerable transport users. These effects are to be analysed at the appropriate territorial level as established by each Member State, taking into account national specificities and elements such as access to public transport and basic services and identifying the areas mostly affected.

A description of the methodology used in the estimates, while making sure that the estimates are calculated with a sufficient level of regional disaggregation.

3.3.   Projected impact of the planned measures and investments

An estimate of the projected impacts of the measures and investments planned in section 2 on greenhouse gas emissions, energy poverty and transport poverty, with comparison to the baseline described above.

A description of the methodology used in the estimates.

Qualitative and quantitative tables on the impact of the Plan, template provided below:

Component

Description of the expected impacts of the component on:

(mark include relevant quantitative indicators)

Energy efficiency

Building renovation

Zero- and low-emission mobility and transport

Greenhouse gas emission reductions

Reduction in the number of vulnerable households and vulnerable transport users (unit: households)

Overall plan

Buildings sector

Road transport sector

Component

Quantification of the impact (if available)

i.e. % difference from policy neutral baseline

Short-term (3 years ahead)

Medium-term (end of the plan)

Greenhouse gas emissions

Households in energy poverty

Households in transport poverty

Greenhouse gas emissions

Households in energy poverty

Households in transport poverty

Overall plan

Buildings sector

Road transport sector

Qualitative and quantitative table on the expected impact of the temporary direct income support measures on the reduction of the number of vulnerable households and vulnerable transport users as well as households in energy poverty and in transport poverty, template provided below:

Component: direct income support

Reduction in the number of vulnerable households and vulnerable transport users

Description of the expected impacts

Estimate of expected impacts; unit: households

Reduction in the number of households in energy poverty and in transport poverty

Description of the expected impacts

Estimate of expected impacts; unit: households

4.   COMPLEMENTARITY, ADDITIONALITY AND IMPLEMENTATION OF THE PLAN

This part concerns the whole Plan. The various criteria set out below need to be justified for the Plan as a whole.

4.1.   Monitoring and implementation of the Plan

Explanation on how the Member State intends to implement the proposed measures and investments, focusing on the arrangements and timetable for monitoring and implementation including, where relevant, measures necessary for compliance with Article 21.

4.2.   Consistency with other initiatives

Explanation on how the Plan is consistent with the information included and the commitments made by the Member State under other relevant plans and funds, and the interplay among the different plans going forward, as set out in Article 6(3) and Article 16(3), point (b)(iii).

4.3.   Complementarity of funding

Information on existing or planned financing of measures and investments from other Union, international, public or, where relevant, private sources which contribute to the measures and investments set out in the Plan, including on temporary direct income support, pursuant to Article 6(1), point (c).

4.4.   Additionality

Explanation and justification of how the new or existing measures or investments are additional and do not substitute recurring national budgetary expenditure, pursuant to Article 13(2), including such explanation and justification with regard to measures and investments included in the Plan in accordance with Article 4(5).

4.5.   Geographic specificities

Explanation of how geographic specificities, such as islands, outermost regions and territories, rural or remote areas, less accessible peripheries, mountainous areas or areas lagging behind, have been taken into account by the Plan.

4.6.   Prevention of corruption, fraud and conflicts of interests

A system to prevent, detect and correct corruption, fraud and conflicts of interests, when using the funds provided under the Fund, and the arrangements that aim to avoid double funding from the Fund and other Union programmes in accordance with Article 21 and Annex III, including funds provided through public or private entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users in accordance with Article 9.

4.7.   Information, communication and visibility

Compliance with the provisions set out in Article 23 referring to public access to data, indicating the website in which the data will be published, as well as the information, communication, and visibility measures.

Outline of the intended national communication strategy aimed at ensuring public awareness of the Union funding.