Local Alliance warns: €86 billion EU Social Climate Fund at risk of mismanagement due to inadequate governance
New report highlights what’s at stake when national governments sidestep local and regional counterparts
Local governance
Fossil-free cities
Community energy
Food systems
Fair economiesTogether with seven other leading European networks representing local and regional governments, we have published a new report exposing critical shortcomings in the Social Climate Fund. Our findings reveal how inadequate multilevel governance jeopardises the potential of the €86 billion Social Climate Fund (SCF) to deliver for vulnerable households.
Multi-level governance must be more than a buzzword; it requires genuine collaboration, co-design, and trust across all levels of government. Only through real feedback and evaluation can we achieve effective policy outcomes.
Claire Roumet, Director of Energy Cities
The survey underpinning the report, conducted by the Local Alliance — a coalition made of ACR+, CEMR, Climate Alliance, Energy Cities, Eurocities, FEDARENE, ICLEI Europe and POLIS — highlights widespread non-compliance with key requirements under SCF legislation.
Articles 4 and 5 of the SCF state that Member States must engage with local and regional governments in developing their national Social Climate Plans. However, the report finds that many governments are failing to fulfil these obligations, often reducing consultations to empty gestures or bypassing them entirely.
A missed opportunity to address local needs
The SCF is a flagship initiative under the European Green Deal, aimed at supporting vulnerable households. But the findings show a troubling disconnect between national decision-makers and their local governments.
The survey, covering cities and regions across 14 Member States, including Belgium, Finland, Germany, Greece and Spain, paints a stark picture of delayed consultations, inadequate dialogue, and missed opportunities to incorporate local expertise.
Local governments: Key partners for effective action
Local and regional governments are uniquely positioned to ensure that EU funds address the specific needs of their communities. They bring expertise, proximity, and an understanding of local priorities, which are crucial for tailoring measures to effectively support vulnerable households.
The absence of meaningful consultation not only undermines the legislative requirements but also jeopardises the effectiveness of the SCF just six months before Member States are due to submit their plans in June.
Recommendations for national and EU decision-makers
To ensure the Social Climate Fund effectively supports vulnerable households, the Local Alliance urges Member States, amongst others, to prioritise meaningful collaboration with regional and local governments, through locally developed plans such as SECAPs and Sustainable Urban Mobility Plans.
This will provide EU investments that are aligned with local needs to address energy and transport poverty, ensuring measures that target the needs of vulnerable groups like women, older people and single-parent households.
