European Commission Endorses Malta's €60.6 Million Social Climate Plan

Brussels, July 28, 2026 – The European Commission has officially endorsed Malta's Social Climate Plan, marking a significant step in the nation's commitment to a fair and inclusive clean energy transition. This plan, which will mobilize €60.6 million until 2032, includes a substantial contribution of €45.4 million from the European Union.

Photo by Christian Lue on Unsplash

Malta's initiative is the fourth national plan to be adopted under the EU's Social Climate Fund (SCF). The SCF is designed to utilize revenues generated from carbon pricing, specifically from the new Emissions Trading System for fuel combustion in buildings, road transport, and additional sectors (ETS2), to mitigate the social impacts of the green transition.

Key Measures of Malta's Plan

The endorsed plan outlines several crucial measures aimed at supporting vulnerable households and small companies:

1. Energy Efficiency for Households: Investments will focus on improving the energy efficiency of homes and renovating public social housing. This includes upgrades such as roof insulation and the installation of renewable energy systems like heat pump water heaters and photovoltaic systems with battery storage.

2. Sustainable Transport Expansion: Over 30,000 vulnerable transport users will benefit from expanded sustainable transport options, including door-to-door community transport services.

3. Support for Micro-Enterprises: Vulnerable micro-enterprises in transport-dependent sectors will receive assistance to transition to electric vehicles, with improved access to affordable electric mobility and charging infrastructure.

These measures are projected to reduce greenhouse gas emissions by 3,500 tonnes of CO₂ equivalent between 2026 and 2032, while also addressing energy poverty within the country.

Broader Context of the Social Climate Fund

The Social Climate Fund, operational from 2026 to 2032, is expected to mobilize at least €86.7 billion across the EU. It combines revenues from the ETS2 with Member States' contributions, ensuring that the clean transition is equitable and leaves no one behind. The Commission continues to work closely with Member States, urging the swift submission of their national plans. To date, eight Member States have formally submitted their plans, with Sweden, Lithuania, and Latvia having already received endorsement.

A fair clean transition is one that people can afford and feel in their daily lives. Malta’s plan will help families lower their energy bills and improve their homes, give more than 30,000 people better access to transport, and support small businesses in switching to cleaner mobility. This is how climate action can deliver change while protecting those who need support most.

— Roxana Mînzatu, Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness