site.btaBulgaria Must Act Quickly to Secure EUR 2 Bln from the Social Climate Fund, Environmental Organizations Warn

Bulgaria risks missing the deadline for submitting its Social Climate Plan, which could result in the loss of EUR 2 billion earmarked for combating energy poverty, environmental organizations said on Monday.

The country is expected to receive nearly EUR 2.5 billion from the fund between 2026 and 2032, with the funds intended to support vulnerable households and micro-enterprises facing energy or transport poverty.

Bulgaria has the highest level of energy poverty in the European Union, with approximately 1.8 million people—30% of the population—living on an official income below BGN 728 in 2023, according to the Sustainable Energy Development Agency. This makes the timely submission of the Social Climate Plan even more critical, as its primary goal is to mitigate the social impact of including greenhouse gas emissions from buildings, road transport, and additional sectors under the EU Emissions Trading System (ETS 2).

Concerns have been raised that the plan must be submitted to the European Commission by the end of June, yet Bulgaria lacks a clear timeline, structured procedure, and transparency rules for its preparation. Further complicating the situation, the Coordination Unit under the Council of Ministers, which was tasked with meeting the deadline, was dissolved last week.

Environmental organizations stress that the development of the Social Climate Plan must be transparent and involve active public participation. "Public consultations should ensure awareness of upcoming price changes linked to the EU emissions trading scheme, as well as the available relief measures funded by the Social Climate Fund," said Teodora Peneva, senior climate and energy expert at WWF and one of the authors of a recent policy statement. She added that the lack of an information campaign explaining the benefits and challenges of European climate policies for Bulgarian citizens remains a major issue.

Civil society organizations recommend several measures to ensure a smooth preparation process for the Social Climate Plan, including the inclusion of public observers in the Interdepartmental Commission, the creation of expert working groups with civil society representation in each relevant ministry, and the establishment of a monitoring committee with NGO participation to oversee the plan’s preparation and implementation.

Experts also stress that the government must strengthen its capacity to manage the process effectively. The Council of Ministers has yet to designate a responsible institution to create and maintain an information system for energy-poor households. Additionally, local authorities, economic and social partners, and civil society organizations need institutional support to actively participate in the plan’s implementation, monitoring, and evaluation.

"It is crucial to develop a simplified application process for Social Climate Fund assistance to reduce administrative barriers and ensure accessibility for all social groups, including vulnerable communities and people with disabilities," said Svetoslav Stoykov, EU Building Renovation Coordinator at Za Zemiata. Possible solutions include mobile service centres and social mediators to assist applicants.

The total budget of the Social Climate Fund stands at EUR 65 billion, representing only 34% of projected ETS 2 revenues between 2026 and 2032. The remaining 66% will go directly to EU member states, which are free to increase co-financing for their Social Climate Plans beyond the mandatory 25% minimum.

The policy statement was submitted by Za Zemiata, WWF Bulgaria, Greenpeace Bulgaria, Habitat Bulgaria, EnEffect Centre for Energy Efficiency, and other organizations working in the fields of environmental protection, energy efficiency, and social policy, with the support of the Black Sea Research Energy Centre (BSREC).