Poorest should get EU climate fund sooner, lawmakers say

(Reuters, 18 Jan 2022) European Commission plans to launch a "social climate fund" to shield vulnerable citizens from higher bills that could arise from a carbon market for buildings and transport fuels.

A new fund to support Europe's poorest households during the shift to green energy should kick in a year earlier than planned, in 2024, an early draft of European Parliament's position on the proposal said.

The European Commission said last year it would launch a "social climate fund" in 2025 to shield vulnerable citizens from higher bills that could arise from a EU carbon market for buildings and transport fuels.

The fund would total 72 billion euros ($81.60 billion) under the Commission proposal, and aims to overcome some countries' resistance to the new carbon market, which they fear could face a public backlash if it adds to energy bills.

A draft of Parliament's amendments to the fund proposal, seen by Reuters, would also increase the carbon market revenues that go into the fund if carbon prices increase - possibly resulting in more cash.

"The green transition should be feasible for everyone, not just those who can afford it," Esther de Lange, one of the two lead lawmakers on the proposal, said.

The fund could support electric car subsidies, energy-saving home renovations and train workers to renovate, fit rooftop solar panels and install electric vehicle chargers.

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Reuters, 18 Jan 2022: Poorest should get EU climate fund sooner, lawmakers say