The European federation of renewable energy co-ops, Rescoop, is suggesting a raft of changes to the European Commission’s fit for 55′ package, a set of legislative proposals for a 55% cut in greenhouse emissions by 2030.
The package, which is being debated in the European Parliament and Council, includes plans for a new social climate fund (SCF) to help vulnerable households, micro-businesses and transport users meet the costs of the green energy transition.
But Rescoop, in a recent position paper, accuses the Commission’s proposal of reducing the fund “to a predominantly reactive instrument, aimed at mitigating the distributional impact of an extension of the Emission Trading System to Buildings and Transport (ETS2)”.
The apex points to existing debates around the effect of using price mechanisms to provoke behaviour change, an issue acknowledged in the REPowerEU Plan, and warns that “market-driven savings” may fall short in guaranteeing fairness and solidarity”.
Rescoop argues that while SCF has “significant potential to serve as a cornerstone of a just energy transition, ensuring vulnerable social groups are addressed”, several changes are needed to realise this potential.
It suggests: a more substantial and impactful scope and size for the SCF; delinking the ETS2 as a prerequisite for the creation of an SCF; targeted support for low-income and vulnerable households and their empowerment; and acknowledgment and support for the role renewable and citizen energy communities can play in achieving the objectives of this regulation.
Rescoop also calls on the EU and national governments to provide support through grants, procurement, incentives for vulnerable consumer groups, and dedicated measures to support schemes for renewable energy communities that want to focus on energy poverty as a priority.
The full position paper is available on Rescoop’s website.
