Climate Alliance calls for robust Social Climate Fund
On 11 October, Climate Alliance joined WWF, Oxfam, CAN Europe and over 35 other associations, NGOs and civil society organisations in calling for a bold and transformative Social Climate Fund. The organisations stressed the importance of the fund for the EU’s social, climate and energy security goals in an open letter addressed to the negotiators of the Social Climate Fund initiative, the Czech Presidency of the European Council and European Commission Vice President Frans Timmermans.
“Climate policy goes hand in hand with energy security affordability,” explain the authors of the letter. “By investing in clean, cheap and sovereign renewable energy sources, as well as boosting energy savings, we can address all three crises at once.” Demands include a base revenue stream for the fund that scales with the carbon price, is supported by the Emissions Trading System, and can be topped up by other sources of finance including member state co-financing and contributions from windfall profit caps.
The European Commission agreed upon the creation of a Social Climate Fund in July 2021 as part of the European Green Deal’s 'fit for 55' legislative package. Negotiations on the form such a fund will take are ongoing.