© WWF

The European Union is recalibrating its priorities. Competitiveness and regulatory simplification are back in vogue, raising concerns about whether environmental sustainability will remain at the heart of Europe’s future agenda. Yet climate ambition is far from out of fashion. It still commands a prominent place on the policy catwalk. The Fit for 55 package—designed to cut emissions by 55% by 2030 and put the EU to the path to achieve climate neutrality by 2050—continues to drive energy and climate reforms across the bloc. 

The European Union’s new Social Climate Fund (SCF), designed to mitigate the social impacts of climate policies, could provide essential support to low-income households who are already burdened by rising energy costs. However, early signs from the region are troubling.

A recent regional assessment by WWF and Habitat for Humanity, covering Bulgaria, Hungary, and Romania, reveals that national governments may fall short in delivering on this promise. The development of national Social Climate Plans (SCPs), a prerequisite for accessing SCF funding, has so far been characterized by vague targeting, opaque processes, and minimal public engagement.

A make-or-break moment for the Just transition

These plans are not simply administrative requirements. They are blueprints for protecting vulnerable citizens during the shift to a low-carbon economy. When thoughtfully designed, SCPs can lead to warmer homes, lower energy bills, and improved air quality.

Unfortunately, several critical shortcomings have emerged:

• Governments have not clearly defined who qualifies as vulnerable. Many households, especially those still using firewood or coal for heating, risk being overlooked.
• Proposed measures rely on existing programs that have already demonstrated limited effectiveness or poor accessibility.
• Civil society organizations and local communities have been excluded from the planning process, weakening both transparency and effectiveness.

© WWF

These policy gaps are not theoretical. Without corrective action, families may continue to live in cold, inefficient homes. The green transition, rather than building unity, may further widen socioeconomic gaps.

To avoid these risks, WWF-CEE urges governments to improve their SCPs. Here are just three of the multiple suggestions formulated in the official the document:

• Broad stakeholder involvement, including civil society and local communities, in the planning, implementation, and monitoring processes is necessary. The involvement could ensure that the needs of the directly affected target group are properly represented.
• Use detailed and accurate data to identify and prioritize support for the most vulnerable groups. Even though energy poor firewood user households don't use fossil fuel for heating, they should be eligible for the fund
• Equip local governments with the authority and resources needed to implement practical solutions in their communities. It is recommended that decisions of support should be taken at the lowest local level that is closest to the target group and most effective. 

The recommendations have been created as part of the BioJust project implementation, supported by the European Climate Initiative (EUKI).

Europe’s test of climate solidarity

The Social Climate Fund is the European Union’s most concrete tool for delivering a just transition. Its success will depend on national transparency, inclusive policymaking, and a clear commitment to public welfare.

The green transition can only succeed if it includes everyone. It must not be a privilege for the few, but a shared pathway toward a more resilient and equitable future. Countries in Central and Eastern Europe have the opportunity to lead by example, but decisive action is needed now.

This is the moment to act, to listen, and to demonstrate that climate action and social justice can and must go hand in hand.

This project is part of the European Climate Initiative (EUKI) of the German Federal Ministry for Economic Affairs and Climate Action (BMWK). It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emissions.