Commission endorses Lithuania’s €884 million Social Climate Plan to support vulnerable households and small enterprises in the clean transition

This article is brought to you in association with the European Commission.

The European Commission has approved Lithuania’s Social Climate Plan – the second national plan approved under the new Social Climate Fund, which uses revenues from carbon pricing to ensure a fair and inclusive clean transition for vulnerable communities and businesses.

The Lithuanian Social Climate Plan will mobilise €884 million until 2032 to help vulnerable households, particularly those in houses that consume too much energy, remote areas or regions with limited public services. It will also support micro-enterprises to cope with rising energy costs. The Lithuanian plan will make homes more energy-efficient and heating more affordable. It will cover 50-85% of renovation costs for over 40,000 vulnerable households and increase the availability of social housing by building or renovating highly energy-efficient homes for this purpose. It will also set up Energy Advisory Hubs in all regions to provide households with personalised advice on how to cut their energy costs.

In addition, the funding will make transport more sustainable and accessible, especially for those who need it the most. It will support the purchase of over 7,000 electric vehicles for public transport, households and micro-enterprises. To complement this initiative, the Plan also expands the charging network in public and private spaces. Furthermore, around 280 km of bike lanes will be constructed, the purchase of over 14,000 bikes will be supported, and around 320,000 users will benefit from reduced public transport fares.

The plan was developed by the Lithuanian authorities and reflects the specific needs of the country. The Commission found that the Lithuanian plan ensures a lasting response to the challenges faced by vulnerable households and micro-enterprises due to rising fossil energy and fuel costs. At the same time, the plan contributes to the shift to clean energy and transport. Out of the total €884 million planned, €663 million will come from the Social Climate Fund and €221 million will be covered by Lithuania. The country will be able to request a first payment from the Commission once the implementation of the plan has started.

Background

The Social Climate Fund provides significant financial support to the EU Member States in order to finance measures and investments identified in their national Social Climate Plans which shall ensure that the clean transition is fair and leaves no one behind. Running from 2026 to 2032, the Social Climate 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) as well as 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, and the 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. Eight Member States (Sweden, Lithuania, Latvia, Malta, the Netherlands, Greece, Croatia, and Slovenia) have formally submitted their Plans to date and Sweden’s plan was the first one to be adopted. Most of the remaining 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. 

For more information

Lithuanian Social Climate Plan

Social Climate Fund

Guidance on the implementation of the Social Climate Fund

Factsheet – implementation guidance

Social Climate Fund Regulation

EU Emissions trading system for buildings, road transport and additional sectors (ETS2)