The European Commission has approved Malta’s plan to use €60.6 million in European and national funding to help vulnerable households and businesses cope with the
costs of the EU’s clean energy transition.
Malta is the fourth EU country to have its Social Climate Plan endorsed under the bloc’s Social Climate Fund, which is designed to protect lower-income households and vulnerable groups as carbon pricing is extended to buildings and road transport.
The plan will run until 2032 and receive €45.4 million from the EU, with the remainder financed by Malta.
A major focus will be improving the energy efficiency of homes, particularly for vulnerable households living in public housing. Measures will include roof insulation and the installation of renewable energy technologies such as heat-pump water heaters and photovoltaic panels with battery storage.
The plan also aims to improve transport options for more than 30,000 vulnerable people through door-to-door community transport services.
Small businesses in sectors heavily dependent on transport will receive support to switch to electric vehicles, including improved access to affordable electric mobility and charging infrastructure.
The European Commission estimates that the measures could help reduce greenhouse gas emissions by about 3,500 tonnes of CO₂equivalent between 2026 and 2032, while also helping to tackle energy poverty.
The plan was drawn up in consultation with Maltese authorities and other national stakeholders, with support from the European Commission. Brussels said it adequately addressed the social consequences of extending emissions trading to buildings and road transport through the new ETS2 system.
Malta will be able to apply for its first payment from the Commission once implementation has begun and the required initial investment results have been achieved.
€86.7bn fund for Europe’s green transition
The Social Climate Fund is due to operate from 2026 to 2032 and is expected to mobilise at least €86.7 billion across the EU.
It will finance measures including energy-efficiency improvements, building renovation, cleaner heating and cooling, renewable energy, and zero-emission transport.
The fund is financed through revenues from the new ETS2 carbon-pricing system, alongside contributions from member states, which must cover at least 25% of the cost of their national plans.
Eight countries have so far formally submitted their Social Climate Plans: Sweden, Lithuania, Latvia, Malta, the Netherlands, Greece, Croatia and Slovenia.
Sweden's plan was the first to be approved, followed by Lithuania and Latvia. Most other EU countries have already shared draft plans with the Commission.
Brussels has urged governments to submit their final plans quickly so that the fund can begin delivering support as the new carbon-pricing system comes into effect. Photo by Protinax, Wikimedia commons.