REGULATION (EU) 2023/955 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060

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ANNEX I

METHODOLOGY FOR THE CALCULATION OF THE MAXIMUM FINANCIAL ALLOCATION FOR EACH MEMBER STATE UNDER THE FUND PURSUANT TO ARTICLE 14

This Annex sets out the methodology for calculating the maximum financial allocation available for each Member State in accordance with Articles 10 and 14.

The methodology takes into account the following variables with regard to each Member State:

The maximum financial allocation of a Member State under the Fund (MFAi) is established as follows:

Where:

The maximum amount (MA) for the implementation of the Fund is as referred to in Article 10(1) and α i is the share of Member State i in the maximum amount, determined on the basis of the following steps:

With

fi = 1 if

; fi = 2,5 if

Where for each Member State i:

rural pop i is the population at risk of poverty living in rural areas of the Member State i;

rural pop EU is the sum of population at risk of poverty living in rural areas of the Member States of the EU-27;

pop i is the population of the Member State i;

pop EU is the sum of the population of the Member States of the EU-27;

HCO2 i is the carbon dioxide emissions from fuel combustion by households of the Member State i;

HCO2 EU is the sum of carbon dioxide emissions from fuel combustion by households of the Member States of the EU-27;

arrears i is the percentage of households at risk of poverty with arrears on utility bills of the Member State i;

arrears EU is the percentage of households at risk of poverty with arrears on utility bills of the EU-27;

is the GNI per capita of the Member State i;

is the GNI per capita of the EU-27.The βi of those Member States with a GNI per capita below the EU-27 value and for which the

is the minimum component are proportionally adjusted to ensure that the sum of βi for all Member States equals 100 %. All λi are proportionally adjusted to ensure that their sum equals 100 %.

For all Member States, α i cannot be lower than 0,07 % of the maximum amount as referred to in Article 10(1). The α i of all Member States with α i higher than 0,07 % are proportionally adjusted to ensure that the sum of all α i equals 100 %.

For the Member States with a GNI per capita below 90 % of the EU-27 value, α i cannot be lower than the share of reference emissions under Article 4(2) of Regulation (EU) 2018/842 for the emission sources 1A3b, 1A4a and 1A4b, as established in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories for the average of the period 2016-2018, as comprehensively reviewed pursuant to Article 4(3) of that Regulation. The α i of the Member States with a GNI per capita above the EU-27 value are proportionally adjusted to ensure that the sum of all α i equals 100 %.

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ANNEX II

Maximum financial allocation for each Member State under the Fund pursuant to Articles 10 and 14

The application of the methodology in Annex I to the amounts referred to in Article 10(1) results in the following share and maximum financial allocation for each Member State.

Any amounts pertaining from Article 10(3) will be covered within the limits of the maximum financial allocation for each Member State on a pro rata basis.

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ANNEX III

Key requirements for the Member State’s internal control system

This includes:

This includes:

This includes:

This includes:

This includes:

This includes:

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ANNEX IV

Common indicators for indicative milestones and targets for the Social Climate Plans of the Member States referred to in Article 6(1), point (m), monitoring by the Member State of the implementation of its Plan referred to in Article 24(1), evaluation by the Commission of the progress towards the objectives of the Fund referred to in Article 24(4)

Measures and investments can contribute to several of the common indicators. If a Member State’s Plan does not contain a measure or investment contributing to some of the indicators, a Member State may indicate ‘non-applicable’.

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ANNEX V

Template for Social Climate Plans referred to in Article 6(7)

Table of Contents
1.	OVERVIEW AND PROCESS FOR ESTABLISHING THE SOCIAL CLIMATE PLAN
1.1.	Executive summary
1.2.	Overview of current policy situation
1.3.	Public consultation process
2.	DESCRIPTION OF THE MEASURES AND INVESTMENTS, MILESTONES AND TARGETS
2.1.	COMPONENT [1][2]: [buildings sector][transport sector]
(i)	Description of the component
(ii)	Description of the measures and investments of the component
(iii)	Do no significant harm
(iv)	Milestones, targets and timeline
(v)	Financing and costs
(vi)	Justification for benefitting entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users (if applicable)
(vii)	Estimated total costs of the component
(viii)	Scenario in the event of a later start of the emissions trading system
2.2.	COMPONENT [3]: direct income support
(i)	Description of the component
(ii)	Description of the measures of the component
(iii)	Milestones and targets for direct income support measures
(iv)	Justification for the measures
(v)	Costs of the measures
(vi)	Justification for benefitting entities other than vulnerable households and vulnerable transport users (if applicable)
(vii)	Estimated cost of the Plan for temporary direct income support component.
(viii)	Scenario in the event of a later start of the emissions trading system
2.3.	Technical assistance
2.4.	Transfers to shared management programmes
2.5.	Estimated total costs of the Plan
3.	ANALYSIS AND OVERALL IMPACT
3.1.	Definitions
3.2.	Projected impact on vulnerable groups
3.3.	Projected impact of the planned measures and investments
4.	COMPLEMENTARITY, ADDITIONALITY AND IMPLEMENTATION OF THE PLAN
4.1.	Monitoring and implementation of the Plan
4.2.	Consistency with other initiatives
4.3.	Complementarity of funding
4.4.	Additionality
4.5.	Geographic specificities
4.6.	Prevention of corruption, fraud and conflicts of interests
4.7.	Information, communication and visibility

1.   OVERVIEW AND PROCESS FOR ESTABLISHING THE SOCIAL CLIMATE PLAN

1.1.   Executive summary

The context of the green transition in the Member State with particular emphasis on the main challenges from the social impacts of the inclusion of greenhouse gas emissions from buildings and road transport sectors within the scope of Directive 2003/87/EC and how the Plan will respond to these challenges.

An overview table that sums up the main objectives of the Plan, together with the estimated total costs of the Plan, including the contribution from the Fund, the national contribution and resources from shared management programs to be transferred to the Fund, divided into the three areas of intervention: measures and investments for the buildings sector, for the road transport sector, and measures for direct income support, based on the template below:

1.2.   Overview of current policy situation

Information on the current national energy and climate policies, how they are being applied in the national context, with a particular focus on buildings and transport sectors and in respect to the most vulnerable groups.

1.3.   Public consultation process

A summary of the consultation process of local and regional authorities, social partners, civil society organisations, youth organisations, and other relevant stakeholders, as implemented in accordance with the national legal framework, for the preparation and, where available implementation of the Plan, covering the scope, type, and timing of consultations activities, as well as how the views of the stakeholders are reflected in the Plan.

2.   DESCRIPTION OF THE MEASURES AND INVESTMENTS, MILESTONES AND TARGETS

Information for each component for the three areas of the Plan separately:

A component may include several sub-components focusing on a specific challenge or need. Each component or sub-component may include one or several closely linked or mutually dependent measures or investments.

2.1.   COMPONENT [1][2]: [buildings sector][transport sector]

Information on the component:

(i)   Description of the component

Summary box:

Summary box for Component [1][2] [buildings sector][transport sector]

Intervention area: [buildings sector][transport sector]

Objective:

Measures and investments:

Estimated total costs: EUR xx, of which

Costs requested to be covered under the Fund: EUR xx

Costs to be covered by the national contribution: EUR xx

(ii)   Description of the measures and investments of the component

Detailed description of the component and its specific measures and investments, as well as their interlinkages and synergies, covering the following:

(iii)   Do no significant harm

Information on how measures and investments included in the component comply with the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852. The Commission will provide technical guidance, pursuant to Article 6(5) of this Regulation.

(iv)   Milestones, targets and timeline

Information on each milestone and target that will reflect the progress on implementing measures and investments of this component, as follows:

Table containing milestones, targets and timeline for the components with the following information:

(v)   Financing and costs

Information and explanation on the estimated total costs of the component and for each measure and investment, backed up by appropriate justification, including:

(vi)   Justification for benefitting entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users (if applicable)

If support from the Fund is provided through public or private entities other than vulnerable households, vulnerable micro-enterprises, or vulnerable transport users, an explanation of what measures or investments those entities will enact and how those measures and investments will ultimately be to the benefit of vulnerable households, vulnerable micro-enterprises and vulnerable transport users;

If support from the Fund is provided through financial intermediaries, a description of the measures that the Member State intends to adopt to ensure that financial intermediaries pass on the entire benefit to the final recipients.

(vii)   Estimated total costs of the component

Completion of the table on the estimated cost of measures and investments included in the component, in accordance with the template provided below:

(viii)   Scenario in the event of a later start of the emissions trading system

A description and quantification of the necessary adjustments to the measures, investments, milestones, targets, the amount of national contribution and any other relevant element of the Plan resulting from the postponement of the start of the emissions trading system established pursuant to Chapter IVa of Directive 2003/87/EC in accordance with Article 30k of that Directive.

A separate version of the summary box, the table on milestones, targets and timeline and the table on estimated costs.

2.2.   COMPONENT [3]: direct income support

Information on the Component for the direct income support:

(i)   Description of the component

Summary box:

Summary box for Component 3 – direct income support

Intervention area: direct income support

Objective:

Measures:

Estimated total costs: EUR xx, of which

Costs requested to be covered under the Fund: EUR xx

Costs to be covered by the national contribution: EUR xx

(ii)   Description of the measures of the component

A detailed description of the component and its specific measures, as well as their interlinkages and synergies, including:

(iii)   Milestones and targets for direct income support measures

Information on each milestone and target that will reflect the progress on implementing of this component, as follows:

Table containing milestones, targets and timeline for temporary direct income support measures, template provided below:

(iv)   Justification for the measures

Justification for the need of temporary direct income support based on the criteria laid out in Articles 6(1) and 8(2):

(v)   Costs of the measures

Information on the estimated total costs of the component, backed up by appropriate justification, including:

(vi)   Justification for benefitting entities other than vulnerable households and vulnerable transport users (if applicable)

If the support from the Fund is provided through public or private entities other than vulnerable households, or vulnerable transport users, an explanation what kind of measures those entities will enact and how those measures will ultimately be to the benefit of vulnerable households, or vulnerable transport users.

If support from the Fund is provided through financial intermediaries, a description of the measures that the Member State intends to adopt to ensure that financial intermediaries pass on the entire benefit to the final recipients.

(vii)   Estimated cost of the Plan for temporary direct income support component.

Completion of the table on estimated cost of support included in the component, template provided below:

(viii)   Scenario in the event of a later start of the emissions trading system

A description and quantification of the necessary adjustments to the measures, investments, milestones, targets, the amount of national contribution and any other relevant element of the Plan resulting from the postponement of the start of the emissions trading system established pursuant to Chapter IVa of Directive 2003/87/EC in accordance with Article 30k of that Directive.

A separate version of the summary box, the table on milestones, targets and timeline and the table on estimated costs.

2.3.   Technical assistance

A description of the technical assistance actions that will be included for the effective administration and implementation of the measures and investments set out in the Plan, in accordance with Article 8(3), including:

2.4.   Transfers to shared management programmes

If resources are intended to be transferred from the Fund to funds under shared management pursuant to Article 11(2), indication of which programmes these resources will be transferred to and under which timeline, and indication of how the measures and investments to be implemented under those programmes would comply with the objectives referred to in Article 3, including whether they fall under the measures and investments set out in Article 8.

2.5.   Estimated total costs of the Plan

Estimated total costs of the Plan, including any amounts made available for additional technical support under Article 11(4) of this Regulation, the amount of the cash contribution for the purpose of the Member State compartment pursuant to the relevant provisions of Regulation (EU) 2021/523 and any amount made available for additional technical assistance under Article 8(3) of this Regulation.

An indication of the national contribution to the total costs of its plan, including an indication of any resources intended to be transferred to the Fund from shared management programmes pursuant to Article 11(1) of this Regulation and any resources intended to be transferred from the Fund to shared management programmes pursuant to Article 11(2) of this Regulation.

A description of how the costs are in line with the principle of cost efficiency and commensurate to the expected impact of the Plan.

Completion of the table summarising the cost of the Fund by source of funding, template provided below:

3.   ANALYSIS AND OVERALL IMPACT

3.1.   Definitions

An explanation of how the definitions of energy poverty and transport poverty are to be applied at national level.

3.2.   Projected impact on vulnerable groups

An estimate of the likely effects of the increase in prices resulting from the emissions trading system established pursuant to Chapter IVa of Directive 2003/87/EC on households, and in particular on incidence of energy poverty and transport poverty, and on micro-enterprises, comprising in particular an estimated number of, and the identification of, vulnerable households, vulnerable micro-enterprises and vulnerable transport users. These effects are to be analysed at the appropriate territorial level as established by each Member State, taking into account national specificities and elements such as access to public transport and basic services and identifying the areas mostly affected.

A description of the methodology used in the estimates, while making sure that the estimates are calculated with a sufficient level of regional disaggregation.

3.3.   Projected impact of the planned measures and investments

An estimate of the projected impacts of the measures and investments planned in section 2 on greenhouse gas emissions, energy poverty and transport poverty, with comparison to the baseline described above.

A description of the methodology used in the estimates.

Qualitative and quantitative tables on the impact of the Plan, template provided below:

Qualitative and quantitative table on the expected impact of the temporary direct income support measures on the reduction of the number of vulnerable households and vulnerable transport users as well as households in energy poverty and in transport poverty, template provided below:

4.   COMPLEMENTARITY, ADDITIONALITY AND IMPLEMENTATION OF THE PLAN

This part concerns the whole Plan. The various criteria set out below need to be justified for the Plan as a whole.

4.1.   Monitoring and implementation of the Plan

Explanation on how the Member State intends to implement the proposed measures and investments, focusing on the arrangements and timetable for monitoring and implementation including, where relevant, measures necessary for compliance with Article 21.

4.2.   Consistency with other initiatives

Explanation on how the Plan is consistent with the information included and the commitments made by the Member State under other relevant plans and funds, and the interplay among the different plans going forward, as set out in Article 6(3) and Article 16(3), point (b)(iii).

4.3.   Complementarity of funding

Information on existing or planned financing of measures and investments from other Union, international, public or, where relevant, private sources which contribute to the measures and investments set out in the Plan, including on temporary direct income support, pursuant to Article 6(1), point (c).

4.4.   Additionality

Explanation and justification of how the new or existing measures or investments are additional and do not substitute recurring national budgetary expenditure, pursuant to Article 13(2), including such explanation and justification with regard to measures and investments included in the Plan in accordance with Article 4(5).

4.5.   Geographic specificities

Explanation of how geographic specificities, such as islands, outermost regions and territories, rural or remote areas, less accessible peripheries, mountainous areas or areas lagging behind, have been taken into account by the Plan.

4.6.   Prevention of corruption, fraud and conflicts of interests

A system to prevent, detect and correct corruption, fraud and conflicts of interests, when using the funds provided under the Fund, and the arrangements that aim to avoid double funding from the Fund and other Union programmes in accordance with Article 21 and Annex III, including funds provided through public or private entities other than vulnerable households, vulnerable micro-enterprises and vulnerable transport users in accordance with Article 9.

4.7.   Information, communication and visibility

Compliance with the provisions set out in Article 23 referring to public access to data, indicating the website in which the data will be published, as well as the information, communication, and visibility measures.

Outline of the intended national communication strategy aimed at ensuring public awareness of the Union funding.