The European Commission has endorsed Malta’s Social Climate Plan, the fourth plan under the Social Climate Fund. The fund uses money raised through carbon pricing to help vulnerable households and small businesses move to cleaner ways of heating, cooling and travelling. Its aim is to make the clean transition fairer and to help protect people from higher energy and transport costs.

Starting this year until 2032, the Maltese Social Climate Plan will mobilize €60.6 million. €45.4 million will be made available from the Social Climate Fund, while Malta will cover the remainder, representing at least 25% of the total costs of the plan.

Support for cleaner buildings

The plan focuses strongly on helping low and lower middle income households live in more energy efficient homes to reduce energy costs. It will:

  • support renovations of social housing apartments to reduce primary energy use by 60%
  • equip social housing estates with renewable energy systems, including energy-efficient water-heating and air-cooling systems, as well as photovoltaic installations and battery storage systems

Support for cleaner transport

The plan will also finance both public and private sustainable transport solutions. It will:

  • help local councils to expand on-demand community transport services for vulnerable transport users by acquiring electric vehicles
  • support vulnerable micro-enterprises in transitioning away from fossil fuels by helping them purchase electric vehicles and install charging points

Helping vulnerable households and micro-enterprises

The Plan will benefit vulnerable households and microenterprises, including:

  • people facing energy or transport poverty
  • micro-enterprises most exposed to fossil fuel price shocks

Malta prepared the plan in consultation with national stakeholders and in cooperation with Commission services to reflect the national context and the specific needs of the country.

The Commission considers that the Maltese plan gives a strong and lasting response to the new carbon pricing system for fuels in buildings and road transport sector in the EU (known as ETS2). The plan also provides a long-lasting response to the related challenges faced by vulnerable households, transport users and micro-enterprises, while contributing to the clean transition.

Malta will be able to request a first payment from the Commission in the first quarter of 2027, once the implementation of the plan has started and the first results from the investments have been achieved.

Background

The Social Climate Fund will provide significant financial support to EU countries 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, including public transport.

The Commission is working closely with EU countries on the development of their Social Climate Plans and calls for their swift submission. Malta is the fourth Member State to have its plan endorsed by the Commission (after Sweden, Lithuania and Latvia). In addition, four EU countries (the Netherlands, Greece, Croatia and Slovenia) have formally submitted their plans, and the vast majority of the remaining EU countries have shared draft versions. The Commission has provided dedicated guidance documents and good practices to help them effectively implement the Social Climate Fund and complete their plans.

Related links

Press release

Maltese Social Climate Plan

Social Climate Fund

Guidance on the implementation of the Social Climate Fund

Factsheet – implementation guidance

Social Climate Fund Regulation

EU Emissions trading system for buildings, road transport and additional sectors (ETS2)

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