The European Commission today approved Sweden's Social Climate Plan which is the first of its kind to get the green light under the new Social Climate Fund. Using carbon pricing revenues, the Fund helps make the clean transition fair and inclusive for vulnerable communities. In the Swedish case, it will support citizens who are most affected by rising transport costs and struggle to access clean sustainable transport.
Starting next year until 2032, the Swedish Social Climate Plan will mobilise a total of €532.8 million to offer citizens more affordable access to electric cars. It will support around 115,500 households with payments of up to 1,300 SEK (around €120) per month for a maximum of 3 years to buy or lease new or used electric cars. Out of the €532.8 million, €389.7 million will be made available from the Social Climate Fund , while Sweden will cover the remainder.
The Plan, which has been developed by the Swedish authorities, reflects the national context and specific needs of the country. The plan fully focuses on the transport sector. Specifically, it will benefit low and lower-middle income households residing in 177 rural municipalities and 433 areas (covering around one third of the Swedish population) with limited public transport.
The Commission's assessment is that the Swedish plan ensures a long-lasting response to the impacts faced by vulnerable households and contributing to the clean transition. Sweden will be able to request a first payment from the Commission in the first half of 2026 once the scheme has kicked off.
Background
The Social Climate Fund will provide significant financial support to the Member States 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 Fund is expected to mobilise at least €86.7 billion, combining revenues from the new emissions trading system for fuel combustion in buildings, road transport and additional sectors (ETS2) and 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.
The Commission is working closely with Member States on the development of their Social Climate Plans and calls for their swift submission. Four EU Member States (Sweden, Latvia, Lithuania and Malta) have formally submitted their Plans to date, and more than half of Member States have shared draft versions. The Commission has provided dedicated guidance to help them effectively implement the Social Climate Fund and complete their Plans.
