The Social Climate Fund (SCF) is a high-priority project for the European Commission, following the guidelines of President Ursula Von der Leyen's agenda, as it is considered a groundbreaking project, novel to its kind and scale. It will be financed by the "polluter-pay" principle, meaning that the emitters of the greenhouse gases in the building and transport sector will cover the expenses.
At the same time the Social Climate Fund will address the social impacts on the most vulnerable groups, affected by the new Emissions Trading System (ETS2) for buildings and road transport.
The Social Climate Fund has a budget of around €86.7 billion for seven years (2026 - 2032). The Member States will be able to make use of the rest of ETS2 revenue to top up the SCF, or to put additional measures that will allow the financing of the green and fair transitions in each country.
Why should cycling be part of the Member States’ Social Climate Plans?
Cycling is one of the most affordable, reliable and fastest way to tackle transport poverty.
In addition to conventional bikes, e-bikes can play an important role here. They allow longer commutes for all ages, abilities and fitness levels and can be used even in hilly and warmer countries. Ebikes allow longer journeys in cities, but also in sub-urban and rural areas which didn’t used to be cycling friendly. People can now commute to work, take their kids to school and travel longer distances.
However, we need to make bikes and ebikes affordable to low-income households and transport users. People at risk of transport poverty are not able to afford bikes and e-bikes without public funding.
5 measures that have proven effective:
1. Purchase premiums targeted to low-income families and transport users.
2. Subsidized bike and ebike sharing; we need more public bike sharing along with private free-floating models. Both systems have been rolled out successfully in low-income areas.
3. Bike leasing and benefit bike programs; these are powerful tools in tackling transport poverty, offering flexible, affordable, and inclusive access to bicycles. They lower financial barriers to cycling, provide support for maintenance, and incentivize cycling through tax benefits and employer participation.
4. Microfinance for cargo bikes; cargo bikes allow families and small businesses to make the shift away from costly diesel-powered vans.
5. Investment in bike lanes and secure parking; we need more safe, high-quality cycling infrastructure and secure parking spaces.
Cycling should be part of every multimodal hub. It can be public transports best friend by complementing it and offering a solution for the first and last mile.
Uptake on cycling comes with a vast number of other benefits including improved physical and mental health, improved air quality, reduced pollution, noise and congestion and it brings the much needed local jobs and growth.
Therefore, we recommend every national plan to put at least 10% for cycling measures.
You can find more details on the Social Climate Fund and guidelines for advocacy work here.
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