European Parliament approves Social Climate Fund spearheaded by David Casa

The European Parliament has approved the ambitious Social Climate Fund, spearheaded by Maltese MEP David Casa, that will help shield households and small businesses from the effects of climate transition.

Casa hailed the Social Climate Fund as "the most significant social measure on the road to net zero" as it was voted into law with 521 votes in favour.

“We have robust safeguards on how governments will operate the Fund, especially through strict targeting requirements to ensure that funding goes where it will have the biggest impact. The Commission will evaluate detailed plans on how the measures are designed and implemented, with funds only being disbursed upon completion of milestones and targets,” he said.

The €86.7 billion fund will be invested to shield households and micro-enterprises from the effects of the climate transition.

Maltese citizens are set to benefit from a ten-fold increase in funding under the provisional agreement, with a mobilization of just over €60 million.

Casa, who was the lead negotiator of the Social Climate Fund on behalf of the Employment and Social Affairs Committee, said he was satisfied with the increased share for Maltese citizens, stating that "there was a strong case to be made and I am very happy to have achieved this result".

The Social Climate Fund, funded in large part by EU funds with minority co-financing by member states, aims to bring down energy bills and transition away from fossil fuels by investing in energy efficiency and renewable energy.

“With the Social Climate Fund, I want to see investments reach citizens with more solar panels, more efficient appliances, better insulation, and greener alternatives to transport,” Casa said.

The Social Climate Fund is a cornerstone of the fit-for-55 package's social policy, addressing any disproportionate effects that climate measures may have on vulnerable households and micro-enterprises.

Casa worked jointly with Esther de Lange of the Netherlands on behalf of the Committee on the Environment and Food Safety in negotiating the Social Climate Fund.