### 5a. unless otherwise decided in the first review carried out in accordance with article 3 , from 2023 allowances held in the reserve above 400 million allowances shall no longer be valid.; ### 5a. unless otherwise decided in the first review carried out in accordance with article 3 , from 2023 allowances held in the reserve (%) above 600 million allowances shall be set aside for the purpose of the eu global decarbonisation fund;


### 14. takes note of the issues incurred by the agency’s staff members seeking healthcare in france , as the french national authority does not accept them to be affiliated with the national health system; calls on a reform of jsis to be better integrated among the national health insurance schemes; ### 14. takes note of the issues incurred by the agency’s staff members seeking healthcare in france , as the french national authority does not accept them to be affiliated with the national health system;


### 15. notes that , between 2020 and mid-2022 , four cases of harassment were reported within the agency and three of its staff members were put on the register; notes , nevertheless , that no investigations were carried out and no cases were brought before a court; ### 15. notes that , between 2020 and mid-2022 , four cases of harassment were reported within the agency and three of its staff members were put on the register; notes , nevertheless , that no investigations were carried out and no cases were brought before a court; encourages the agency to further develop its policies and methods to prevent such cases more efficiently in the future;


### 24. notes that an internal investigation has been opened by olaf in 2021 , which is still ongoing; calls on the agency to report to the budgetary authority about the outcomes of the investigation; ### 24. notes that an internal investigation has been opened by olaf in 2021 , which is still ongoing; calls on the agency to report to the budgetary authority about the outcomes of the investigation; calls on the agency to take note to the fact that the participation rate of the anti-fraud and ethics trainings are low even though they are mandatory; encourages the agency to improve the participation rates of these trainings in order to improve the detection techniques and to encourage staff to report any suspicion of fraud


### 27. notes from its consolidated annual activity report for 2021 that the agency responded in a timely manner and adequately to the covid-19 pandemic , in relation to both its staff and working arrangements , and to the railway sector; regarding response in relation to the staff policy , notes that the agency enforced the application of teleworking to all staff with a number of measures that are bound to become the new normal , such as increasing the bandwidth of data connection and optimising remote vpn connectivity for staff working from home; regarding response to pandemic in relation to the railway sector , notes in addition that the agency prepared a report on “travel safety during covid-19 for passengers travelling long distance by train and other modes” and organised a webinar on “post pandemic recovery of rail transport”; ### 27. notes from its consolidated annual activity report for 2021 that the agency responded in a timely manner and adequately to the covid-19 pandemic , in relation to both its staff and working arrangements , and to the railway sector; regarding response in relation to the staff policy , notes that the agency enforced the application of teleworking to all staff with a number of measures that are bound to become the new normal , such as increasing the bandwidth of data connection and optimising remote vpn connectivity for staff working from home; encourages the agency to make use of the lessons learned regarding remote and hybrid working methods , in order to better recognize meetings and tasks that are more efficient to be held and performed remotely than in-person in the future; regarding response to pandemic in relation to the railway sector , notes in addition that the agency prepared a report on “travel safety during covid-19 for passengers travelling long distance by train and other modes” and organised a webinar on “post pandemic recovery of rail transport”;


### 5. notes that the implementation rate for the joint undertaking’s 2021 commitment and payment budget available for horizon 2020 projects was 100% and 83% respectively; ### 5. highlights that the implementation rate for the joint undertaking’s 2021 commitment and payment budget available for horizon 2020 projects was 100% and 83% respectively;


### 8. notes that the joint undertaking also further implemented together with the other joint undertakings , the use of systal , an online hr tool to perform secure selection processes; notes that , in accordance with the decision of the governing board regarding the reclassification system , in 2021 the joint undertaking has performed the reclassification exercise and as a result , eleven ta end three ca staff members were reclassified; ### 8. welcomes that the joint undertaking also further implemented together with the other joint undertakings , the use of systal , an online hr tool to perform secure selection processes; notes that , in accordance with the decision of the governing board regarding the reclassification system , in 2021 the joint undertaking has performed the reclassification exercise and as a result , eleven ta end three ca staff members were reclassified;


### 1. notes from the report of the courts of auditors (the ‘court’s report’) that the annual accounts of the joint undertaking for the financial year ended on 31 december 2021 present fairly , in all material respects , the financial position of the joint undertaking at 31 december 2021 , the results of its operations , its cash flows , and the changes in net assets for the year then ended , in accordance with its financial regulation and with the accounting rules adopted by the commission’s accounting officer; notes that the underlying transactions to the accounts are legal and regular in all material respects; ### 1. welcomes from the report of the courts of auditors (the ‘court’s report’) that the annual accounts of the joint undertaking for the financial year ended on 31 december 2021 present fairly , in all material respects , the financial position of the joint undertaking at 31 december 2021 , the results of its operations , its cash flows , and the changes in net assets for the year then ended , in accordance with its financial regulation and with the accounting rules adopted by the commission’s accounting officer and that the underlying transactions to the accounts are legal and regular in all material respects;


### 3. notes , from the joint undertaking’s report on budgetary and financial management 2021 , that the budget execution was impacted by the covid-19 pandemic situation , in particular for what concerns payment appropriations for the administrative expenditure; notes that the joint undertaking has had a 99.6% rate of implementation for the commitment appropriations in 2021 (excluding the unused appropriations not required in current year) and the payment appropriations were executed to 82.3% of the available funds (excluding the unused appropriations 2021 of eur 59.8 million. 56.3% of execution rate if the unused appropriations are included as total payment budget); ### 3. understands that the budget execution was impacted by the covid-19 pandemic situation , in particular for what concerns payment appropriations for the administrative expenditure and that nonetheless , the joint undertaking has had a 99.6% rate of implementation for the commitment appropriations in 2021 (excluding the unused appropriations not required in current year) and the payment appropriations were executed to 82.3% of the available funds (excluding the unused appropriations 2021 of eur 59.8 million. 56.3% of execution rate if the unused appropriations are included as total payment budget);


### 11. notes that to assess the operational payment controls of the joint undertaking , the court audited randomly sampled horizon 2020 payments made in 2021 , at the level of the final beneficiaries , to corroborate the ex-post audit error rates; notes that , in one case , the court found and quantified a systemic error related to the incorrect calculation of the hourly rates for personnel costs; ### 11. notes that to assess the operational payment controls of the joint undertaking , the court audited randomly sampled horizon 2020 payments made in 2021 , at the level of the final beneficiaries , to corroborate the ex-post audit error rates; deplores that , in one case , the court found and quantified a systemic error related to the incorrect calculation of the hourly rates for personnel costs;


### 12. notes that , in 2021 , important documents (for example , evaluation committee members' declarations of absence of conflict of interests; procurement evaluation reports; recruitment evaluation reports; decisions on recruitment selection boards; procurement award decisions , and employment contracts) were authorised by coping and pasting an image of the signature of the responsible authorising officer into the document in word format and then converting the file into pdf format; agrees with the court observation that this practice may present legal risks , as a rejected candidate may challenge the regularity of the signed evaluation documents; ### 12. is deeply concerned that , in 2021 , important documents (for example , evaluation committee members' declarations of absence of conflict of interests; procurement evaluation reports; recruitment evaluation reports; decisions on recruitment selection boards; procurement award decisions , and employment contracts) were authorised by coping and pasting an image of the signature of the responsible authorising officer into the document in word format and then converting the file into pdf format; agrees with the court observation that this practice may present legal risks , as a rejected candidate may challenge the regularity of the signed evaluation documents; calls on the joint undertaking to immediately stop this practice and to opt for a secure authorisation method;


### 17. notes that , in 2021 , the joint undertaking continued to apply the decisions adopted by the governing board regarding the rules on the prevention and management of conflicts of interest applicable to the bodies of the joint undertaking and to the ju staff members; notes that the related processes , for instance concerning members of the ju’s governing board , experts of evaluation procedures , panels for procurement and recruitment , applied consistently the required precautionary measures to identify potential conflicts; notes that a joint undertaking policy on sensitive functions has been drafted based on a dedicated risk assessment and will be finalised in the year 2022; ### 17. welcomes that , in 2021 , the joint undertaking continued to apply the decisions adopted by the governing board regarding the rules on the prevention and management of conflicts of interest applicable to the bodies of the joint undertaking and to the ju staff members and that the related processes , for instance concerning members of the ju’s governing board , experts of evaluation procedures , panels for procurement and recruitment , applied consistently the required precautionary measures to identify potential conflicts; underlines that a joint undertaking policy on sensitive functions has been drafted based on a dedicated risk assessment and will be finalised in the year 2022;


### 18. notes that according to an assessment of the european court of auditors , the risk of fraudulent bankruptcies or other fraudulent behaviours , to escape the financial problems and supply restrictions , needs to be considered in the context of the covid-19 pandemic as additional threat for legality and regularity; notes that the joint undertaking has established a specific risk-based sample of ex-post audits to cover the stratum in the joint undertaking population of grant agreement for partners (gap) projects , which indicate a certain exposure to covid-19 constraints as described by the court of auditors , like financial weaknesses , operational delays , high personal costs as compared to average; ### 18. points out that according to an assessment of the european court of auditors , the risk of fraudulent bankruptcies or other fraudulent behaviours , to escape the financial problems and supply restrictions , needs to be considered in the context of the covid-19 pandemic as additional threat for legality and regularity; appreciates that the joint undertaking has established a specific risk-based sample of ex-post audits to cover the stratum in the joint undertaking population of grant agreement for partners (gap) projects , which indicate a certain exposure to covid-19 constraints as described by the court of auditors , like financial weaknesses , operational delays , high personal costs as compared to average;


### 19. notes that , in the year 2021 , olaf issued the conclusions and its reports regarding two cases pertaining to grants of clean sky and clean sky 2 joint undertaking; notes that the alleged fraud was confirmed in both cases; ### 19. deplores that , in the year 2021 , olaf issued the conclusions and its reports regarding two cases pertaining to grants of clean sky and clean sky 2 joint undertaking and that the alleged fraud was confirmed in both cases;


### (2) the commission communication the european green deal29 sets out a new growth strategy that aims to transform the union into a sustainable , fairer and more prosperous society , with a modern , resource-efficient and competitive economy , where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. the commission proposes also to protect , conserve and enhance the union's natural capital , and protect the health and well-being of citizens from environment-related risks and impacts. finally , the commission considers that this transition should be just and inclusive , leaving no one behind. ### (2) the commission communication the european green deal29 sets out a new growth strategy that aims to transform the union into a sustainable , fairer and more prosperous society , with a modern , resource-efficient and competitive economy , where there are no net emissions of greenhouse gases in 2050. the commission proposes also to protect , conserve and enhance the union's natural capital , and protect the health and well-being of citizens from environment-related risks and impacts. finally , the commission considers that this transition should be just and inclusive , leaving no one behind.


### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment. ### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. the economic incentives in the form of direct income support should be conditional on the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment.


### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for job creation and investment. ### (8) those amendments have differing economic and social impacts on the different sectors of the economy , on the citizens , and the member states. in particular , the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec of the european parliament and the council31 should provide an additional economic incentive to invest into the reduction of fossil fuel consumption and thereby accelerate the reduction of greenhouse gas emissions. combined with other measures , this should , in the medium to long term , reduce the costs for buildings and road transport , and provide new opportunities for quality job creation and investments.


### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. ### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. there is a need to avoid reactive-only measures , therefore the fund should start its operation before inclusion of at least private households and transport into the scope of directive 2003/87/ec (ets) so that there is a time to prepare the mostvulnerable transport users and households and to minimise the need of direct income payments. to that end it is desirable that the measures supporting energy efficiency and aimed at improvement of air quality undertaken by member states are aligned with the purpose of minimising the impact of broadening of the scope of directive 2003/87/ec.


### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. ### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , improvements to insulation , cooling and cooking , as well as for road transport and for ensuring that any improvements are always made with heritage preservation in mind , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers.


### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. ### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. the costs passed on by fuel suppliers to final consumers can differ for each company , region or member state. the commission should therefore collect data on the share of costs absorbed by fuel suppliers and the share of costs passed on to final consumers and should annually report its findings to parliament.


### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. ### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , improvements to insulation , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers.


### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers. ### (9) however , resources are needed to finance those investments. in addition , before they have taken place , the cost supported by households and transport users for heating , cooling and cooking , as well as for road transport and charging infrastructure , is likely to increase as fuel suppliers subject to the obligations under the emission trading for buildings and road transport pass on costs on carbon to the consumers.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable smes and micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises , vulnerable small and medium-sized enterprises (smes) and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , including in rural , insular , mountainous , remote and less accessible areas , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase in the price for fossil fuels will disproportionally affect vulnerable households , vulnerable micro-enterprises , smes and vulnerable transport users who spend a larger share of their income on energy and transport as well as energy - and transport - price sensitive commodities , such as food , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and lack the financial capacity to invest into the reduction of fossil fuel consumption.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , small and medium-sized enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. note in addition that market distortions and speculative acquisitions that lead to higher rents disproportionately affect low-income tenants.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , interconnected , efficient and affordable mobility and transport solutions , who may lack the financial capacity to invest into low-carbon alternatives and implying low capacities to adapt to the consequences of the green transition.


### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption. ### (10) the increase in the price for fossil fuels may disproportionally affect vulnerable households , vulnerable micro-enterprises , vulnerable small and medium enterprises (smes) and vulnerable transport users who spend a larger part of their incomes on energy and transport , who , in certain regions , do not have access to alternative , affordable mobility and transport solutions and who may lack the financial capacity to invest into the reduction of fossil fuel consumption.


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### (11) the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used in priority to promote and foster science , innovation and research on sustainable and future-proof technologies , as well as to achieve the objectives of the social climate fund and , in part , to reimburse debts arising from covid-19 recovery loans.


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , and to help keep european industry competitive , leaving no one behind.


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , and help to keep european industry competitive , leaving no one behind.


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### (11) therefore , the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind.


### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind. ### (11) therefore , a part of the revenues generated by the inclusion of building and road transport into the scope of directive 2003/87/ec should be used to address the social and economic impacts arising from that inclusion , for the transition to be just and inclusive , leaving no one behind.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through refinancing national measures providing temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably measures and investments intended to reduce reliance on fossil fuels and increase energy self-sufficiency of households , through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , installation of renewable energy systems , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate fund (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate fund (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable small and medium-sized enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable small and medium-sized enterprises and vulnerable transport users.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate fund (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable and carbon neutral sources , and granting improved access to affordable and efficient zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users.


### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should be achieved notably through temporary income support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users. ### (13) a social climate (‘the fund’) should therefore be established to provide funds to the member states to support their policies to address the social impacts of the emissions trading for buildings and road transport on vulnerable households , vulnerable micro-enterprises and vulnerable transport users. this should only be done if buildings and road transport are included in the scope of directive 2003/87/ec , notably through temporary support and measures and investments intended to reduce reliance on fossil fuels through increased energy efficiency of buildings , decarbonisation of heating and cooling of buildings , including the integration of energy from renewable sources , and granting improved access to zero- and low-emission mobility and transport to the benefit of vulnerable households , vulnerable micro-enterprises and vulnerable transport users.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should set out national measures to support vulnerable households , vulnerable micro-enterprises and vulnerable transport users to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should set out national measures to mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including national measures providing temporary direct income support to mitigate adverse income effects in the shorter term.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable smes and micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable small and medium-sized enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources and support , including finance to carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance , increase energy self-sufficiency of households and could envisage other measures.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state must submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans must have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. the plans should set concrete objectives , an implementation timeline and periodically report on progress towards the attainment of the objectives.


### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term. ### (14) for that purpose , each member state should submit to the commission a social climate plan (‘the plan’). those plans should pursue two objectives. firstly , they should provide vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users the necessary resources to finance and carry out investments in energy efficiency , decarbonisation of heating and cooling , in zero- and low-emission vehicles and mobility and charging infrastructure. secondly , they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy and transport poverty during the transition period until such investments have been implemented. the plans should have an investment component promoting the long-term solution of reduce fossil fuels reliance and could envisage other measures , including temporary direct income support to mitigate adverse income effects in the shorter term.


### (15) member states , in consultation with regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable. ### (15) member states , in consultation with regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. regional level competences , especially with regard to the allocation of funds , should remain unaffected. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable.


### (15) member states , in consultation with regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable. ### (15) member states , where appropriate , in consultation with regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable.


### (15) member states , in consultation with regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable. ### (15) member states , in consultation with regional and local level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. therefore , member states should be required to appropriately involve local and regional stakeholders in the preparation and implementation phase of the plan. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable.


### (15) member states , in consultation with regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable. ### (15) member states , in consultation with social partners and regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable.


### (15) member states , in consultation with regional level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable. ### (15) member states , in consultation with regional and local level authorities , are best placed to design and to implement plans that are adapted and targeted to their local , regional and national circumstances as their existing policies in the relevant areas and planned use of other relevant eu funds. in that manner , the broad diversity of situations , the specific knowledge of local and regional governments , research and innovation and industrial relations and social dialogue structures , as well as national traditions , can best be respected and contribute to the effectiveness and efficiency of the overall support to the vulnerable.


### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport. ### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable smes and micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport.


### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport. ### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport.


### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport. ### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable small and medium-sized enterprises and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport.


### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport. ### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport , implying also low capacities to adapt to the consequences of the green transition.


### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should help member states to address the social impacts arising from the emissions trading for the sectors of buildings and road transport. ### (16) ensuring that the measures and investments are particularly targeted towards energy poor or vulnerable households , vulnerable micro-enterprises , vulnerable smes and vulnerable transport users is key for a just transition towards climate neutrality. support measures to promote reductions in greenhouse gas emissions should also help member states address the social impacts arising from the emissions trading for the sectors of buildings and road transport.


### (17) pending the impact of those investments on reducing costs and emissions , well targeted direct income support for the most vulnerable would help the just transition. such support should be understood to be a temporary measure accompanying the decarbonisation of the housing and transport sectors. it would not be permanent as it does not address the root causes of energy and transport poverty. such support should only concern direct impacts of the inclusion of building and road transport into the scope of directive 2003/87/ec , not electricity or heating costs related to the inclusion of power and heat production in the scope of that directive. eligibility for such direct income support should be limited in time. ### (17) pending the impact of those investments on reducing costs and emissions , well targeted direct income support for the most vulnerable would help the just transition. such support should not exceed 25% of the total expenditure of the national plans and should be understood as a temporary and transitional measure accompanying the decarbonisation of the housing and transport sectors. it would not be permanent as it does not address the root causes of energy and transport poverty. such support should only concern direct impacts of the inclusion of building and road transport into the scope of directive 2003/87/ec , not electricity or heating costs related to the inclusion of power and heat production in the scope of that directive. eligibility for such direct income support should be limited in time.


### (17) pending the impact of those investments on reducing costs and emissions , well targeted direct income support for the most vulnerable would help the just transition. such support should be understood to be a temporary measure accompanying the decarbonisation of the housing and transport sectors. it would not be permanent as it does not address the root causes of energy and transport poverty. such support should only concern direct impacts of the inclusion of building and road transport into the scope of directive 2003/87/ec , not electricity or heating costs related to the inclusion of power and heat production in the scope of that directive. eligibility for such direct income support should be limited in time. ### (17) pending the impact of those investments on reducing costs and emissions , well targeted direct income support for the most vulnerable would help the just transition. such support should be understood to be a temporary measure accompanying the decarbonisation of the housing and transport sectors. it would not be permanent as it does not address the root causes of energy and transport poverty. such support should only concern direct impacts of the inclusion of building and road transport into the scope of directive 2003/87/ec , not electricity or heating costs related to the inclusion of power and heat production in the scope of that directive. eligibility for such direct income support should be limited to 25% of the volume of the plan and should be limited in time to three years.


### (17) pending the impact of those investments on reducing costs and emissions , well targeted direct income support for the most vulnerable would help the just transition. such support should be understood to be a temporary measure accompanying the decarbonisation of the housing and transport sectors. it would not be permanent as it does not address the root causes of energy and transport poverty. such support should only concern direct impacts of the inclusion of building and road transport into the scope of directive 2003/87/ec , not electricity or heating costs related to the inclusion of power and heat production in the scope of that directive. eligibility for such direct income support should be limited in time. ### (17) pending the impact of those investments on reducing costs and emissions , well targeted direct income support for the most vulnerable would help the just transition. such support should be understood to be a temporary measure accompanying the decarbonisation of the housing and transport sectors and should not exceed 25% of the total expenditure of the national plans. it would not be permanent as it does not address the root causes of energy and transport poverty. such support should only concern direct impacts of the inclusion of building and road transport into the scope of directive 2003/87/ec , not electricity or heating costs related to the inclusion of power and heat production in the scope of that directive. eligibility for such direct income support should be limited in time.


### (18) taking into account the importance of tackling climate change in line with paris agreement commitments , and the commitment to the united nations sustainable development goals , the actions under this regulation should contribute to the achievement of the target that 30% of all expenditure under the 2021-2027 multiannual financial framework should be spent on mainstreaming climate objectives and should contribute to the ambition of providing 10% of annual spending to biodiversity objectives in 2026 and 2027 , while considering the existing overlaps between climate and biodiversity goals. for this purpose , the methodology set out in annex ii of regulation (eu) 2021/1060 of the european parliament and of the council33 should be used to tag the expenditures of the fund. the fund should support activities that fully respect the climate and environmental standards and priorities of the union and comply with the principle of ‘do no significant harm’ within the meaning of article 17 of regulation (eu) 2020/852 of the european parliament and of the council34 . only such measures and investments should be included in the plans. direct income support measures should as a rule be considered as having an insignificant foreseeable impact on environmental objectives , and as such be considered compliant with the principle of ‘do no significant harm’. the commission intends to issue technical guidance to the member states well ahead of the preparation of the plans. the guidance will explain how the measures and investments must comply with the principle of ‘do no significant harm’ within the meaning of article 17 of regulation (eu) 2020/852. the commission intends to present in 2021 a proposal for a council recommendation on how to address the social aspects of the green transition. ### (18) taking into account the importance of tackling climate change in line with paris agreement commitments , and the commitment to the united nations sustainable development goals , the actions under this regulation should contribute to the achievement of the target that 30% of all expenditure under the 2021-2027 multiannual financial framework should be spent on mainstreaming climate objectives and should contribute to the ambition of providing 10% of annual spending to biodiversity objectives in 2026 and 2027 , while considering the existing overlaps between climate and biodiversity goals. for this purpose , the methodology set out in annex ii of regulation (eu) 2021/1060 of the european parliament and of the council33 should be used to tag the expenditures of the fund. the fund should support activities that fully respect the climate and environmental standards and priorities of the union and comply with the principle of ‘do no significant harm’ within the meaning of article 17 of regulation (eu) 2020/852 of the european parliament and of the council34 . only such measures and investments should be included in the plans. the commission intends to issue technical guidance to the member states well ahead of the preparation of the plans. the guidance will explain how the measures and investments must comply with the principle of ‘do no significant harm’ within the meaning of article 17 of regulation (eu) 2020/852. the commission intends to present in 2021 a proposal for a council recommendation on how to address the social aspects of the green transition.


### (19) women are particularly affected by carbon pricing as they represent 85% of single parent families. single parent families have a particularly high risk of child poverty. gender equality and equal opportunities for all , and the mainstreaming of those objectives , as well as questions of accessibility for persons with disabilities should be taken into account and promoted throughout the preparation and implementation of plans to ensure no one is left behind. ### (19) women are particularly affected by carbon pricing as they represent 85% of single parent families. single parent families have a particularly high risk of child poverty. gender equality and equal opportunities for all , and the mainstreaming of those objectives , as well as questions of accessibility for persons with health problems and disabilities should be taken into account and promoted throughout the preparation and implementation of plans to ensure no one is left behind.


### (20) member states should submit their plans together with the update of their integrated national energy and climate plans in accordance with article 14 of regulation (eu) 2018/1999 of the european parliament and of the council35. the plans should include the measures to be financed , their estimated costs and the national contribution. they should also include key milestones and targets to assess the effective implementation of the measures. ### (20) member states should submit their plans together with the update of their integrated national energy and climate plans in accordance with article 14 of regulation (eu) 2018/1999 of the european parliament and of the council35. the plans should include the national measures to be refinanced , their estimated costs and the national contribution. they should also include key milestones and targets to assess the effective implementation of the measures.


### (20) member states should submit their plans together with the update of their integrated national energy and climate plans in accordance with article 14 of regulation (eu) 2018/1999 of the european parliament and of the council35 . the plans should include the measures to be financed , their estimated costs and the national contribution. they should also include key milestones and targets to assess the effective implementation of the measures. ### (20) member states should submit their plans together with the update of their integrated national energy , climate and transport and infrastructure plans ( including charging infrastructure) in accordance with article 14 of regulation (eu) 2018/1999 of the european parliament and of the council35 . the plans should include the measures to be financed , their estimated costs and the national contribution. they should also include key milestones and targets to assess the effective implementation of the measures.


### (21) the fund and the plans should be coherent with and framed by the reforms planned and the commitments made by the member states under their updated integrated national energy and climate plans in accordance with regulation (eu) 2018/1999 , under directive [yyyy/nnn] of the european parliament and the council [proposal for recast of directive 2012/27/eu on energy efficiency]36 , the european pillar of social rights action plan37 , the european social fund plus (esf+) established by regulation (eu) 2021/1057 of the european parliament and of the council38 , the just transition plans pursuant to regulation (eu) 2021/1056 of the european parliament and of the council39 and the member states long-term buildings renovation strategies pursuant to directive 2010/31/eu of the european parliament and of the council40 . to ensure administrative efficiency , where applicable , the information included in the plans should be consistent with the legislation and plans listed above. ### (21) the fund and the plans should be coherent with and framed by the reforms planned and the commitments made by the member states under their updated integrated national energy and climate plans in accordance with regulation (eu) 2018/1999 , under directive [yyyy/nnn] of the european parliament and the council [proposal for recast of directive 2012/27/eu on energy efficiency]36 , the european pillar of social rights action plan37 , the european social fund plus (esf+) established by regulation (eu) 2021/1057 of the european parliament and of the council38 , the cohesion policy operational programmes under regulation (eu) 2021/1058 , the recovery and resilience plans in accordance with regulation (eu) 2021/241 , the just transition plans pursuant to regulation (eu) 2021/1056 of the european parliament and of the council39 and the member states long-term buildings renovation strategies pursuant to directive 2010/31/eu of the european parliament and of the council40. to ensure administrative efficiency , where applicable , the information included in the plans should be consistent with the legislation and plans listed above.


### (22) the union should support member states with financial means to implement their plans through the social climate fund. payments from the social climate fund should be made conditional on achievement of the milestones and targets included in the plans. this would allow efficiently taking into account national circumstances and priorities while simplifying financing and facilitating its integration with other national spending programmes while guaranteeing the impact and the integrity of eu spending. ### (22) the union should support member states with financial means to implement their plans through the social climate fund. payments from the social climate fund should partly refinance national measures outlined in the plans and be made conditional on achievement of the milestones and targets included in the plans. this would allow efficiently taking into account national circumstances and priorities while simplifying financing and facilitating its integration with other national spending programmes while guaranteeing the impact and the integrity of eu spending.


### (22) the union should support member states with financial means to implement their plans through the social climate fund. payments from the social climate fund should be made conditional on achievement of the milestones and targets included in the plans. this would allow efficiently taking into account national circumstances and priorities while simplifying financing and facilitating its integration with other national spending programmes while guaranteeing the impact and the integrity of eu spending. ### (22) the union should support member states with financial means to implement their plans through the social climate fund. payments from the social climate fund should be made conditional on achievement of the milestones and targets included in the plans. this would allow efficiently taking into account national circumstances and priorities while simplifying financing and facilitating its integration with other national spending programmes while guaranteeing the impact and the integrity of eu spending. to ensure that vulnerable , households , vulnerable microenterprises and vulnerable smes can receive support from the fund as soon as possible , the plans should be effectively implemented from the entry into force of the social climate fund , consequently the commission should pre-finance an amount of up to 15% of the financial contribution of member states.


### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. member states are to finance 50% of the total costs of their plan themselves. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose. ### (23) the overall financial envelope of the fund should , in principle , be commensurate to the additional burden on the vulnerable households and traffic users from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. the eu budget should cover half of the eur 144 billion overall envelope , corresponding to eur 72 billion. following the developments of the carbon price and other relevant parameters , and before the final adoption of this legislative act , the commission should update their assessment whether the overall financial envelope of the fund still corresponds to 25% of the expected revenue deriving from the new ets. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. the revenue accruing to the union budget is to respect the principle of universality in accordance with article 7 of decision (eu , euratom) 2020/2053. member states are to finance 50% of the total costs of their plan themselves. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose. the financing of the fund should not come at the expense of other union programmes and policies.


### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. member states are to finance 50% of the total costs of their plan themselves. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose. ### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. member states are to finance a significant share of the total costs of their plans themselves , corresponding to at least 60 % for temporary direct income support and at least 50 % for targeted structural measures and investments. by way of derogation , it should be possible for the national co-financing share for targeted structural measures and investments to be limited to 40 % for member states that are eligible for a top-up from the modernisation fund. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose.


### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. member states are to finance 50% of the total costs of their plan themselves. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose. ### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. member states are to finance 50% of the total costs of their plan themselves , except for member states with a gross national income (gni) per capita below 90% of eu-27 for which the co-financing share is to be limited to 30%. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose.


### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. member states are to finance 50% of the total costs of their plan themselves. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose. ### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. member states are to finance two thirds of the total costs of their plan themselves. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose.


### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. pursuant to council decision (eu , euratom) 2020/205341 , member states should make those revenues available to the union budget as own resources. member states are to finance 50% of the total costs of their plan themselves. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose. ### (23) the financial envelope of the fund should , in principle , be commensurate to amounts corresponding to 25% of the expected revenues from the inclusion of buildings and road transport into the scope of directive 2003/87/ec in the period 2026-2032. member states should make those revenues available to the union general budget as own resources. member states are to co-finance their plan differently depending on their gdp per capita. for this purpose , as well as for investment and measures to accelerate and alleviate the required transition for citizens negatively affected , member states should inter alia use their expected revenues from emissions trading for buildings and road transport under directive 2003/87/ec for that purpose.


### (24) the fund should support measures that respect the principle of additionality of union funding. the fund should not be a substitute for recurring national expenditures , except in duly justified cases. ### (24) the fund should support measures that respect the principle of additionality of union funding and should not replace national funding for social programmes. the fund should therefore not be a substitute for recurring national expenditures.


### (24) the fund should support measures that respect the principle of additionality of union funding. the fund should not be a substitute for recurring national expenditures , except in duly justified cases. ### (24) the fund should support measures that respect the principle of additionality of union funding. the fund should not be a substitute for recurring national expenditures.


### (28) the implementation of the fund should be carried out in line with the principle of sound financial management , including the effective prevention and prosecution of fraud , tax fraud , tax evasion , corruption and conflicts of interest. ### (28) the implementation of the fund should be carried out in line with the principle of sound financial management , including the effective prevention and prosecution of fraud , tax avoidance , tax evasion , corruption and conflict of interest.


### it shall provide support to member states for the financing of the measures and investments included in their social climate plans (‘the plans’). ### it shall temporarily provide support to member states for the financing of the measures and investments included in their social climate plans (‘the plans’).


### the measures and investments supported by the fund shall benefit households , micro-enterprises and transport users , which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec , especially households in energy poverty and citizens without public transport alternative to individual cars (in remote and rural areas). ### the measures and investments supported by the fund shall benefit households , micro-enterprises and transport users , which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec , especially households in energy poverty and citizens without public transport alternative to individual cars (in remote and rural areas). if a member state already has an equivalent national emission trading system for buildings and road transport in place and that system would be merely replaced by the emission trading system for buildings and road transport established pursuant to chapter iva of directive 2003/87/ec , the national measures already in place to mitigate the social impact and challenges should be duly taken into account.


### the measures and investments supported by the fund shall benefit households , micro-enterprises and transport users , which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec , especially households in energy poverty and citizens without public transport alternative to individual cars (in remote and rural areas). ### the measures and investments supported by the fund shall benefit households , micro-enterprises , small and medium-sized enterprises and transport users , which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec and other eu measures to promote the green transition. priority shall be given to households in energy poverty and citizens without public transport alternative to individual cars (in remote and rural areas).


### the measures and investments supported by the fund shall benefit households , micro-enterprises and transport users , which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec , especially households in energy poverty and citizens without public transport alternative to individual cars (in remote and rural areas). ### the measures and investments supported by the fund shall benefit households , smes and micro-enterprises and transport users , which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec , especially households in energy poverty and citizens without public transport alternative to individual cars (in remote and rural areas).


### the measures and investments supported by the fund shall benefit households , micro-enterprises and transport users , which are vulnerable and particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport into the scope of directive 2003/87/ec , especially households in energy poverty and citizens without public transport alternative to individual cars (in remote and rural areas). ### the measures and investments supported by the fund shall benefit households , micro-enterprises , smes and transport users , which are vulnerable and particularly affected by the new eu climate policies and increased levels of carbon pricing , especially households in energy poverty and citizens in transport poverty , especially those with no accessible and/or affordable alternative to individual internal combustion cars (in remote and rural areas) , in member states with low share of electric vehicles and/or unaffordable prices of such vehicles , compared to the median national income.