Open letter: A bold and transformative Social Climate Fund is needed, now more than ever

An open letter calling for a transformative Social Climate Fund (SCF) to address energy poverty and climate goals in Europe, arguing that the fund must have a flexible, non-capped budget linked to ETS revenues and carbon prices to ensure a just transition.

• The authors argue that current energy price and security crises are fundamentally "fossil fuel crises," and that responding by locking Europe into new fossil fuels is incorrect; instead, investing in renewable energy and energy savings can address social, climate, and security crises simultaneously.
• There is a claim that EU Member States are not sufficiently utilizing Emissions Trading System (ETS) revenues for climate action, noting that between 2013 and 2021, over half of EU countries failed to spend even half of the annual revenue on such actions.
• The letter proposes specific financial requirements for the Social Climate Fund (SCF), including a minimum budget of €72.2 billion over 8 years, the rejection of a fixed or capped budget, and the use of ETS auctioning revenues as a primary funding stream.
• The authors suggest that the SCF budget should scale in proportion to the carbon price to ensure households receive adequate help and can invest in decarbonizing the building and transport sectors to lower their bills.
• Additional funding sources for the SCF should include Member State co-financing, solidarity contributions, or revenues from caps on industries earning unexpected windfall profits from high energy prices.

APA

Carbon Market Watch (n.d.). Open letter: A bold and transformative Social Climate Fund is needed, now more than ever. https://carbonmarketwatch.org/wp-content/uploads/2022/10/Open-letter_-A-bold-and-transformative-Social-Climate-Fund-is-needed-now-more-than-ever_PDF.pdf

Chicago

Carbon Market Watch. Open letter: A bold and transformative Social Climate Fund is needed, now more than ever. n.d. https://carbonmarketwatch.org/wp-content/uploads/2022/10/Open-letter_-A-bold-and-transformative-Social-Climate-Fund-is-needed-now-more-than-ever_PDF.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Open letter: A bold and transformative Social Climate Fund is needed, now more than ever |url=https://carbonmarketwatch.org/wp-content/uploads/2022/10/Open-letter_-A-bold-and-transformative-Social-Climate-Fund-is-needed-now-more-than-ever_PDF.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatchndopen, author = {{Carbon Market Watch}}, title = {{Open letter: A bold and transformative Social Climate Fund is needed, now more than ever}}, publisher = {Carbon Market Watch}, url = {https://carbonmarketwatch.org/wp-content/uploads/2022/10/Open-letter_-A-bold-and-transformative-Social-Climate-Fund-is-needed-now-more-than-ever_PDF.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }