SCF (Social Climate Fund) is part of the new ETS 2 directive that introduces CO₂ emissions pricing for heating and transport. Its purpose is to mitigate the social and economic impacts of climate change for the most vulnerable groups — e.g. households affected by energy or transport poverty, small entrepreneurs and transport users at risk (mfsr.sk).

The fund supports:

• energy efficiency and building renovation,
• transition to low- and zero-emission mobility,
• installation of clean heating systems,
  -part of the resources can also be allocated to temporary direct financial assistance (mfsr.sk, climate.ec.europa.eu).

💰 Financing and total volume

• The SCF will be financed by revenues from ETS2 emission allowances and an additional 50 million allowances from ETS1, namely a total of up to 86.7 billion euros for the period 2026–2032 (climate.ec.europa.eu).
• Each Member State must contribute at least 25 % co-financing to your own plan (mfsr.sk).

🇸🇰 Slovakia's position and implementation plan

• Slovakia will have approximately 1.53 billion euros allocated from the SCF for the years 2026–2032, which represents about €265 per person — among the highest values in the EU (europeannewsroom.com). Slovakia has not yet transposed the directive that would allow it to draw 1.53 billion euros from the Social and Climate Fund
• The Ministry of the Environment and the Ministry of Finance record that 383 million euros of this amount will be financed from the national budget as a share of 25 %.
• Slovak Social-Climate Plan to be submitted by June 2025; the plan will include three pillars: buildings, transportation and direct support (mfsr.sk).

The Commission provides technical support to members – Slovakia is one of 10 countries in the pilot phase under the TECHNICAL SUPPORT INSTRUMENT (climate.ec.europa.eu).

✅ Efficiency assessment

• Expert studies (e.g. Wuppertal / Ramboll) emphasize that SCF is an important tool for protecting vulnerable groups, but several sources warn that its volume "does not reach the root causes of poverty" but responds primarily to added costs caused by ETS2.
• Bruegel recommends that countries use the SCF by supporting investments with long-term impact and timing that is sensitive to social needs.

🔍 Critical challenges to Slovakia

1. Target the aid sufficiently on households in energy and transport poverty – high-quality mapping and analysis by region is needed (mfsr.sk).
2. Effective co-financing 25 % – mechanisms will have to be prepared to draw 383 million euros from the state budget.
3. Linking SCF with existing funds – such as the Just Transition Fund or the Modernisation Fund; a synergistic approach with other sources of funding is essential (mfsr.sk).

🧭 Conclusion and recommendations

SCF represents Slovakia with significant investment potential to support the green transformation, with an emphasis on a just transition. However, implementation depends on:

• timely readiness – submission of the plan by June 2025,
• targeting specific groups – effective spending of resources on the most vulnerable,
• national and regional coordination – building connectivity, mobility and direct assistance with priority for EU objectives.

Slovakia has established solid frameworks and mechanisms that can take advantage of the exceptional opportunity. The key will be fast, transparent and socially sensitive channeling of financesso that SCF can make a real contribution to achieving green neutrality and social recovery. Spring