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Malta’s Social Climate Fund Plan 2026-2032

In May 2023 the Regulation (EU) 2023/955 of the European Parliament and of the Council was published establishing the Social Climate Fund (SCF), with the general objective of the Fund being to provide support for any social repercussions as a result of the EU’s revision of Emission trading scheme (ETS) which shall be extended to the building and road transport sectors. The SCF is a cornerstone of the European Union (EU)’s strategy to ensure that no one is left behind in the journey toward climate neutrality by 2050. As part of the EU’s ambitious “Fit for 55” package, designed to cut Greenhouse Gas (GHG) emissions by at least 55% by 2030 compared to 1990 levels, the SCF provides targeted support to vulnerable households, micro-enterprises, and transport users who face the greatest challenges during this transition.

In line with the SCF Regulation, EU Member States are required to prepare and submit a Social Climate Fund Plan to the European Commission. These Plans detail the specific measures and investments covering the period between 2026 and 2032. Malta has a total budget (EU+MT share) of approximately €60.5 million, subject to adjustments depending on the timing of the ETS implementation. Building on the consultation exercise carried out for the 2021-2027 MFF, in 2024, the Ministry responsible for EU Funds launched a consultation exercise on the needs identified in the energy poverty sector. A committee was set up with the aim of providing insights on the socio-economic and climate related challenges and investment needs in Malta.

More than forty (40) entities were invited to attend the meeting held on 30 September 2024, including representatives of civil society organisations and social partners, youth, regional and local organisations. A copy of the presentations delivered is available to download here.

In an effort to further develop on the dialogues carried out, additional round-table/bilateral discussions were held between 2024 and 2025 with key stakeholders, to develop investment ideas as well as to gather the necessary data for costing methodologies. The Authority that will implement the SCF Plan was also consulted across the different stages of the Plan development.

In May 2025, a consultation session on the SCF was carried out with the Malta Council for Economic and Social Development (MCESD), which is a consultative body formed by representatives of government, employers, unions, and civil society to advise on economic and social policy.

In June 2025, a wide public consultation was launched on the SCF Plan document, allowing the public to contribute to the strategy for utilising the SCF and provide feedback. The document was launched on the Fondi.eu website and the Government’s Public Consultation website, in addition to being publicised through digital adverts, social media websites and on different news portals as well as on the Sunday local newspapers. The document may be downloaded from this link: Public Consultation on the Social Climate Plan for Malta – Document.

In response to the consultation carried out, nine (9) submissions were received from the general public, non-governmental organisations, public administration and the private sector. The responses as part of the feedback received were assessed in line with the parameters set out in the SCF Regulation and in terms of the Fund’s relevance. The outcome and relevant assessment served as the basis for the finalisation of Malta’s SCF Plan.

Furthermore, a communication event was organised for Local Councils during which information on the Plan’s objectives and relevance at the community level was provided. Eighty-two (82) stakeholders were invited to participate at this information session, which included representatives from relevant Government Departments, Regional Authorities, Local Councils and implementing bodies. Details of the event may be accessed hereunder:

A list of stakeholders consulted in 2024 and 2025 can be found here.

Furthermore, in an effort to engage with stakeholders, meetings were also organised with the Malta Chamber of Commerce, Enterprise and Industry and Friends of the Earth Malta.

A summary of the main recommendations emanating from these information and consultation sessions are included in the SCF Plan.