In a significant boost to its efforts in tackling energy poverty, Romania is poised to receive a substantial EUR 6 billion allocation from the European Union’s Social Climate Fund (SCF).
In a significant boost to its efforts in tackling energy poverty, Romania is poised to receive a substantial EUR 6 billion allocation from the European Union’s Social Climate Fund (SCF). This substantial sum constitutes 9.25% of the total EUR 65 billion earmarked for the period spanning 2026 to 2032. The announcement was made by the Romanian Energy Poverty Observatory (Observatorului Român al Sărăciei Energetice – ORSE).
The primary objective of this financial injection is to shield households from the adverse impacts of the European Union’s forthcoming Emissions Trading System 2 (ETS 2), a carbon tax mechanism slated for implementation in 2027. This initiative, designed to regulate the use of fossil fuels in heating and transportation, is a pivotal component of the EU’s Fit-for-55 climate package.
According to a comprehensive report titled “Identifying Vulnerability to the ETS 2 in the CEE Region based on the Example of Romania and Poland,” prepared by the Center for the Study of Democracy (CSD), in collaboration with non-governmental organizations WiseEuropa from Poland and adelphi from Germany, the Central and Eastern European (CEE) region warrants special attention in the context of ETS 2 and SFC.
The report underscores the economic disparities within the CEE region, where disposable incomes trail behind the EU average. Moreover, the housing infrastructure, predominantly comprised of aging and inefficient panel-type buildings inherited from the communist era, exacerbates energy inefficiency.
CEE countries, including Romania, Bulgaria, Poland, Hungary, and the Czech Republic, face a common challenge of high energy poverty rates. Inefficient energy consumption patterns coupled with outdated appliances further compound this issue.
Notably, countries such as Poland and the Czech Republic heavily rely on coal and gas for heating, while Hungary predominantly depends on gas and wood pellets. Romania and Bulgaria utilize a mix of wood, gas, and coal, with discernible disparities between urban and rural areas.
The severity of energy poverty is starkly evident in statistics provided by the report, with Bulgaria and Romania reporting energy poverty rates of 23.7% and 15.2%, respectively. In contrast, Northern and Western European countries like Sweden and Belgium exhibit significantly lower percentages, indicative of the stark divide between regions.
To address these pressing challenges, the report outlines a series of recommendations aimed at alleviating the burden of ETS 2 on the CEE region. These recommendations encompass strategies for enhancing energy efficiency, upgrading housing infrastructure, and providing targeted support to vulnerable households.
With Romania poised to receive a substantial financial injection from the SCF, there is renewed optimism regarding the country’s ability to mitigate energy poverty and foster sustainable development. This significant allocation underscores the EU’s commitment to supporting member states in their transition towards a greener and more equitable future.