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Minister O'Brien launches consultation on Ireland's Social Climate Plan

Focus of the Plan is investment in measures supporting those most vulnerable to energy and transport poverty

Minister for Climate, Energy and the Environment, Darragh O'Brien, today launched a public consultation on the development of Ireland's Social Climate Plan.

Over the lifetime of the plan (2026-2032), Ireland can recoup up to 75% of the cost of eligible measures within the plan (to a maximum of €663 million) from the EU Social Climate Fund. The focus of the plan is investment in long-lasting, socially fair measures aimed at supporting those who may be most vulnerable to energy and transport poverty arising from our transition towards clean mobility and a decarbonised built environment.

In the development and implementation of this plan, the government is committed to developing robust and high-quality measures, guided by meaningful stakeholder input, to ensure that the funds are appropriately targeted to those most at risk from energy and transport poverty, such as vulnerable households, transport users and micro-enterprises. This first, of two consultations, is designed to capture information on what the public and stakeholders see as the priorities for investment under this plan.

The English language version of this consultation will run for a period of six weeks until Thursday 23 October and is available on the EUSurvey website.

Reáchtálfar an leagan Gaeilge den chomhairliúchán seo ar feadh sé seachtaine go Déardaoin, an 23 Deireadh Fómhair agus tá sé ar fáil ar shuíomh gréasáin EUSurvey.

The second consultation, being planned for November, will be a public event, with European Commission officials present.

Commenting on the consultation, Minister O'Brien said:

"Over the longer term, we will have a much more sustainable, secure and efficient transport and heating system, but in the here and now, I recognise that the transition can be difficult for people and that it impacts people unevenly. We have a fantastic opportunity now, with the support of this significant EU co-financing, to develop measures that will have a lasting impact on the wellbeing and comfort of those most vulnerable to energy and transport poverty while also having decarbonisation co-benefits.

"While this is an open consultation, I particularly encourage all those impacted by energy and transport poverty, and the groups that represent them, to participate in this consultation."

ENDS

Notes to the Editor

In July 2021, the EU Commission published the Fit for 55 package, a set of proposals to revise EU legislation with the aim of ensuring EU policies are in line with the Union’s climate goals. Included in this package was a proposal to extend the existing EU Emissions Trading System (EU ETS) to include the maritime and industrial waste sectors and a new ETS II which will encompass buildings and road transport sectors. The increase in price of fossil fuels due to the introduction of ETS II is likely to have a disproportionate negative impact on vulnerable households, vulnerable microenterprises and vulnerable transport users. Consequently, the Fit for 55 package also included the proposal to establish the Social Climate Fund using a portion of the auction revenues generated by ETS II.

As part of Regulation (EU) 2023/955, which provides for the establishment of a Social Climate Fund, all EU Member States are required to prepare a Social Climate Plan (SCP). These plans will set out the programmes in the period 2026-2032 that are aimed at addressing the social and distributional effects of fossil fuel price increases arising from the increase in the price of carbon in the buildings and road transport sectors.

The objectives of the Social Climate Fund are, generally, to ensure a socially fair transition towards climate neutrality and, specifically, to support vulnerable households, vulnerable micro-enterprises and vulnerable transport through measures and investments in the buildings and transport sectors.

The vulnerable groups are defined in the Regulation as:

'vulnerable households' means households in energy poverty or households, including low income and lower middle-income ones significantly affected by rising fossil fuel price impacts and lack the means to renovate the building they occupy

'vulnerable micro-enterprises' means micro-enterprises that are significantly affected by rising fossil fuel price impacts 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

'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

Where energy poverty is defined as:

'energy poverty' means a household’s lack of access to essential energy services, where such services provide basic levels and decent standards of living and health, including adequate heating, hot water, cooling, lighting, and energy to power appliances, caused by a combination of factors, including at least non-affordability, insufficient disposable income, high energy expenditure and poor energy efficiency of homes; (definition taken from the Recast Energy Efficiency Directive).

And where transport poverty is defined as:

'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.

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