Commission endorses Lithuania’s €884 million Social Climate Plan to support vulnerable households and micro-enterprises in the clean transition

The European Commission has today adopted Lithuania’s Social Climate Plan, the second one under the new Social Climate Fund. Using carbon pricing revenues, the fund helps make the clean transition fair and inclusive and fosters clean heating and transport. It will support low and lower middle income households that are most affected by rising heating and transport costs.

Starting this year until 2032, the Lithuanian Social Climate Plan will mobilise €884 million, of which €663 million will be made available from the Social Climate Fund, while Lithuania will cover the remainder. 

What the plan will cover

In the buildings sector, the plan will improve access to energy efficient housing covering between 50 and 85% of renovation costs. It will also enhance the social housing stock with the construction or purchase of new, highly energy efficient housing. The establishment of Energy Advisory Hubs will provide targeted advice for vulnerable households.

In the transport sector, the plan will provide both public and private sustainable transport options for vulnerable transport users. Support will be provided for the purchase of electric vehicles for vulnerable families and micro-enterprises, as well as for the installation of publicly accessible and private recharging points. Funding will also cover micro-mobility, including bicycle purchases and cycle lane development. Zero-emission buses and on-demand services in rural areas will broaden public transport options.

Supporting vulnerable households and municipalities

The plan, which has been developed by the Lithuanian authorities in cooperation with Commission services, reflects the national context and specific needs of the country. It will benefit households that are vulnerable or energy or transport poor, notably social support beneficiaries living in energy-inefficient housing and remote areas and municipalities with limited public transport.

The Commission’s assessment is that the Lithuanian Plan ensures a long-lasting response to the challenges faced by vulnerable households and micro-enterprises and that it contributes to the clean transition. Lithuania will be able to request a first payment from the Commission by the end of 2026, once the implementation of the plan has started.

Background

The Social Climate Fund will provide significant financial support to the member states to finance measures and investments identified in the national Social Climate Plans to ensure the transition is fair and leaves no one behind. Running from 2026 to 2032, the Social Climate Fund is expected to mobilise at least €86.7 billion, combining revenues from:

• Carbon pricing, from both the existing emissions trading system and the new emissions trading system for fuel combustion in buildings, road transport and additional sectors (ETS2)
• Member states’ contributions (at least 25% of the costs of their plans)

The fund will support measures and investments in energy efficiency, the renovation of buildings, clean heating and cooling, integration of renewable energy, as well as in zero- and low-emission mobility and transport.

The Commission is working closely with member states on the development of their Social Climate Plans and calls for their swift submission. Eight EU member states (Sweden, Latvia, Lithuania, Malta, the Netherlands, Greece, Croatia, and Slovenia) have formally submitted their plans to date, and the vast majority of the remaining member states have shared draft versions. The Commission has provided dedicated guidance to help them effectively implement the Social Climate Fund and complete their plans.

Details
Directorate-General for Employment, Social Affairs and Inclusion

Related links

Lithuania's Social Climate Plan

Social Climate Fund

Press release

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