European Commission Approves Malta’s €60.6 Million Social Climate Plan

The European Commission has endorsed Malta’s Social Climate Plan, making it the fourth national plan approved under the Social Climate Fund, which uses carbon pricing revenues to support a fair and inclusive transition towards cleaner energy.

Malta’s plan will mobilise €60.6 million until 2032, including €45.4 million in funding from the European Union.

The Social Climate Fund aims to help vulnerable households, businesses and transport users manage the social impacts linked to the transition to a low-carbon economy.

The measures included in Malta’s plan will focus on reducing energy poverty and improving energy efficiency.

Vulnerable households will benefit from upgrades to their homes and public social housing apartments, including roof insulation, renewable energy systems, heat pump water heaters and photovoltaic systems with battery storage.

The plan will also expand sustainable transport options for more than 30,000 vulnerable transport users through door-to-door community transport services. In addition, vulnerable micro-enterprises operating in transport-dependent sectors will receive support to access affordable electric mobility solutions and charging infrastructure.

The measures, which will run between 2026 and 2032, are expected to help reduce greenhouse gas emissions by around 3,500 tonnes of CO₂ equivalent while supporting a more sustainable and socially responsible transition.

The plan was developed following consultation with national stakeholders and the European Commission, which concluded that it adequately addresses the social impacts linked to the extension of emissions trading to buildings and road transport under the ETS2 system.

Malta will be able to request its first payment once implementation begins and initial investment targets have been achieved.

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