Explanatory Memorandum to COM(2021)801 - Ensuring a fair transition towards climate neutrality - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2021)801 - Ensuring a fair transition towards climate neutrality. |
|---|---|
| source | COM(2021)801  |
| date | 14-12-2021 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The European Green Deal 1 (‘the Green Deal’) launched a new strategy to transform the European Union into a sustainable, fair and prosperous society, with a modern, circular and competitive economy and zero net emissions of greenhouse gases in 2050. It underlines the Commission’s commitment to tackle climate change and environmental degradation and to deliver on the objectives adopted under the United Nations Framework Convention on Climate Change (the ‘Paris Agreement’) to keep the global temperature increase well below 2°C and pursue efforts to keep it to 1.5°C. The cost of non-action on climate and environmental policy would be immense for people, in particular those in vulnerable situations, in terms of living standards, health and wellbeing. With a view to the path to net zero emissions, the need for a fair transition is an integral part of the Green Deal which underlined that no person and no place should be left behind.
In June 2021, the Council of the European Union and the European Parliament adopted the ‘European Climate Law’ 2 , which sets out the binding objective of climate neutrality in the Union by 2050 3 , and a binding intermediate target of a net domestic reduction in greenhouse gas emissions of at least 55% compared to 1990 levels by 2030. To deliver on these targets, the Commission proposed the ‘Fit for 55’ legislative package in July 2021. The package comprises a coherent set of measures in legislative proposals. Among these, the package puts forward a proposal for establishing a new Social Climate Fund 4 of EUR 72.2 billion for the period 2025-2032 to support vulnerable households, transport users and micro-enterprises affected by the introduction of emissions trading for fuels used in road transport and buildings.
Fairness and solidarity are defining principles of the European Green Deal. At the international level, Member States have endorsed in particular the UN Sustainable Development Goals and the Paris Agreement, which refers to ‘the imperatives of a just transition of the workforce and the creation of decent work and quality jobs’. This is confirmed and in line with Article 2 i of the Paris Agreement, the European Council’s Strategic Agenda 2019-2024 and Article 2(2) of the European Climate Law, as well as the European Pillar of Social Rights. The International Labour Organisation (ILO) Guidelines for a just transition towards environmentally sustainable economies and societies for all also provide an internationally established policy framework for a just transition. Furthermore, Member States and social partners endorsed the 2018 Solidarity and Just Transition Silesia Declaration, adopted at COP-24 in Katowice, and the 2021 Declaration on Supporting the Conditions for a Just Transition Internationally, adopted at COP-26 in Glasgow.
Policy actions to support people and their active participation are required for a successful green transition. The vision for a fair transition towards a strong, climate-neutral Social Europe reflects the 20 principles of the European Pillar of Social Rights, which were proclaimed at the Gothenburg Summit in November 2017, and comprise the ‘social rulebook’ for fair and well-functioning labour markets and welfare systems in 21st century Europe. The implementation of the Pillar will support a fair transition, which is key for ensuring social cohesion. The European Pillar of Social Rights Action Plan 5 aims at rallying forces at all levels to turn the principles into concrete actions. It sets three EU headline targets for 2030 in the areas of employment, skills, and poverty reduction, which were welcomed by EU leaders in the Porto Declaration of May and by the European Council in June 2021. It emphasises the need to strengthen the European social dimension across all policies of the Union to ensure that the transition to climate-neutrality is socially fair and just.
Accompanied with the right policies, the transition could create around 1 million jobs in the EU by 2030 6 and 2 million jobs by 2050 7 . It could create particularly middle-skilled, middle-paying jobs 8 , with varying impacts across countries, regions and sectors. This could contribute to mitigating labour market polarisation stemming from other megatrends, notably digitisation, to raising incomes and to reducing poverty overall 9 . As highlighted in the impact assessments of the 2030 Climate Target Plan and the legislative proposals of the ‘Fit for 55’ package, significant labour reallocation within and across sectors will require large-scale investment in reskilling and upskilling. For example, while it is estimated that 160,000 additional construction jobs could be created in the EU by 2030 through the climate transition 10 , currently skills gaps are visible in occupations related to green design, technologies and materials in this sector. The right accompanying policies can reduce - and even prevent - energy poverty, which stems from a combination of low income, a high share of disposable income spent on energy and poor energy efficiency. In addition, they can promote access to affordable and low-emission transport and mobility options, tackle social exclusion and socio-economic, regional and health inequalities, improve health and well-being, and promote equality, in general and also for disadvantaged persons.
To fully realise the employment and social potential of the green transition, it is essential to use all available tools and put the right accompanying policies in place at EU, Member States, regional and local levels. Conversely, in the absence of well-designed accompanying employment and social policies, there are socio-economic risks. It is therefore crucial that the responsible authorities put in place the appropriate polices, and do so without undermining the incentives for the changes in investment and consumption required by the transition. Importantly, such mechanisms should be accompanied by measures to ensure inclusive governance and the active involvement of those most affected by the green transition.
While Member States have put in place and are preparing a multitude of actions to promote a fair transition towards climate neutrality, there is scope to further enhance the design of policies supporting a fair green transition and ensure coherence of the efforts between the various tools available at EU and national level (see next section). Therefore the Commission announced as part of the ‘Fit for 55’ package a proposal for a Council Recommendation by the end of 2021 to provide further guidance to Member States as how to best address the social and labour aspects of the green transition. In parallel to delivering on the European Green Deal, the Commission is also closely monitoring short-term developments on energy markets driven primarily by global market developments and, on 13 October 2021, presented a Communication on ‘Tackling rising energy prices: a toolbox for action and support’ outlining immediate measures to protect consumers and businesses 11 . This forthcoming proposal was also referred to in that Communication as policy framework to support a fair green transition over the medium run and build resilience to any future price developments.
• Consistency with existing policy provisions in the policy area of employment, skills, social and distributional aspects of the green transition
In line with the Political Guidelines of the Commission 2019-2024 12 the European Pillar of Social Rights Action Plan highlights that, as part of a new ‘social rulebook’, social rights and the European social dimension need to be strengthened across all policies of the Union as enshrined in the Treaties, in particular Article 3 TEU and Article 9 TFEU, to move towards a greener and more digital decade in which Europeans can thrive. In turn, the European Green Deal foresees the mainstreaming of sustainability in all EU policies, in particular by pursuing green finance and investment and ensuring a fair transition.
The Commission Recommendation on effective active support to employment following the COVID-19 crisis (EASE) 13 highlighted that the EU and the Member States should act together to promote a dynamic, job-rich and inclusive recovery and facilitate the green and digital transition in the European labour market. The 2020 guidelines for the employment policies of the Member States 14 stated that policy action should combine measures to boost labour demand, increase labour supply, improve access to employment, skills and competences, and enhance the functioning of labour markets and the effectiveness of social dialogue, while taking into account their environmental, employment and social impact. The proposed Joint Employment Report 2022 emphasised that investing in upskilling and reskilling are a top priority to foster an inclusive recovery and support the digital and green transitions 15 . Member States are invited to inter alia introduce support for the reallocation of labour, for instance via well-designed hiring incentives and training, notably towards the green and digital economy, while protecting workers during the transition. This is in line with previous related Council Recommendations, such as on reinforcing the Youth Guarantee 16 , and on vocational education and training (VET) for sustainable competitiveness, social fairness and resilience 17 .
In the framework of the Energy Union and Climate Action Governance Regulation 18 , Member States draw up integrated national energy and climate plans (NECPs), which cover ten-year periods, taking into account the long-term perspective, and the five dimensions of the Energy Union, i.e. energy security; the internal energy market; energy efficiency; decarbonisation; research, innovation and competitiveness. Such NECPs shall be updated five years after the first submission of the NECPs and subsequently every ten years. Pursuant to Article 3(3) (d) of Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate Action, in the event that a Member State finds that it has a significant number of households in energy poverty, it shall include in its plan a national indicative objective to reduce energy poverty together with a timeframe for when the objectives are to be met as well as policies and measures to address energy poverty, including social policy measures and other relevant national programmes 19 . While several Member States have developed concrete initiatives aimed at tackling energy poverty and/or supporting vulnerable consumers that may also address the potential distributional effects of climate policies 20 , the Commission’s assessment in 2020 of the final NECPs concluded 21 that, ‘a large majority of Member States still needs to develop clearer strategies and objectives through a cross-cutting approach to identify and measure the social, employment and skills consequences and other distributional impacts of the energy transition and give proper consideration on how to address these challenges’.
Under the Common Provisions Regulation 22 , which covers inter alia the European Regional Development Fund (ERDF), the European Social Fund + (ESF+), the Cohesion Fund and the Just Transition Fund (JTF), Member States are expected to take account of the contents of their integrated NECPs and the Commission recommendations regarding these plans, for their programmes, including during the mid-term review. The territorial just transition plans (TJTPs) under the JTF should focus on tackling the socio-economic impact of the transition in selected territories relying on fossil fuels or greenhouse gas-intensive industrial activities and include a general section on the national transition process based on the NECPs. The Just Transition Platform was set up to support all relevant stakeholders in using the resources of the Just Transition Mechanism. In addition to the Just Transition Fund (pillar 1), it contains a dedicated scheme under Invest EU (pillar 2) and a public sector loan facility (pillar 3).
With three of the six pillars setting out the scope of the Recovery and Resilience Facility focusing on social elements, the recovery and resilience plans (RRPs) under the Recovery and Resilience Facility (RRF) outline a significant number of reforms and investments that address the aspects of the fair transition in terms of both reforms and investments. The national plans and operational programmes are to be implemented within the current financing period. While the reforms and investments are designed to have a lasting impact, because of this limited duration, they do not provide for a fully comprehensive approach on fair transition at the national level beyond 2027, notably with a view to the EU climate targets.
Other available sources of funding support further complementary actions in this area, including ERASMUS+, the European Globalisation Adjustment Fund for Displaced Workers (EGF), the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU), the Modernisation Fund and auctioning revenues under the EU Emissions Trading System (ETS), the LIFE+ programme and the Horizon Europe Programme. In particular, the ESF+ Regulation 23 stipulates that the ESF+ shall aim to contribute, in line with its specific objectives under Article 4 i, to objectives related to a greener, low carbon Europe through the improvement of education and training systems necessary for the adaptation of skills and qualifications, upskilling including of the labour force, the creation of new jobs in sectors related to the environment, climate, energy, the circular economy and the bio-economy.
Several other strategies and actions plans contribute to a fair green transition. The 2020 European Skills Agenda 24 aims to empower individuals to learn and make sure their skills are fit for the twin transition. In the Skills Agenda, the Commission announces a set of actions to support the acquisition of skills for the green transition, including on individual learning accounts 25 , a European approach for micro-credentials 26 and learning for environmental sustainability 27 . The Pact for Skills 28 aims at mobilising private and public stakeholders to take concrete action for the up- and reskilling of people on the labour market, and, where relevant, pool efforts in partnerships. As of end November 2021, five such partnerships had been established 29 , which committed to the up- and reskilling of 1.5 million people in the coming years. By end November 2021, the Pact for Skills had assembled more than 500 members, including sectoral business organisations, large and small companies, universities, VET providers, social partners, chambers of commerce, regional and local authorities and public and private employment services. The EU’s updated New Industrial Strategy supports job creation in the green economy, stipulating, for example, the important roles of investments in skills, agile public-private partnerships, cooperation in stimulating social dialogue, as well as the creation of green jobs, such as through the various European-wide alliances, notably on batteries, clean hydrogen, circular plastics, and raw materials. The New Consumer Agenda 30 aims to support the green transition to empower, support and enable every consumer, regardless of their financial situation, to play an active role in the green transition without imposing a specific lifestyle and without social discrimination 31 .
Moreover, the Long Term Vision for the EU´s rural areas 32 aims at making rural areas stronger, more connected, resilient and prosperous, also through the green transition. Last, the EU Roma strategic framework for equality inclusion and participation for 2020 - 2030 sets seven objectives at the EU level for the period up to 2030, including increasing effective equal access to adequate desegregated housing and essential services 33 .
• Consistency with other Union policies
Social fairness is built into the design of the legislative proposals in the ‘Fit for 55’ package. In particular, the proposed revision of the Energy Taxation Directive 34 offers possibilities for temporarily exempting vulnerable households from higher energy taxes. The proposed recasts of the Energy Efficiency Directive 35 and of the Energy Performance of Buildings Directive 36 , and the proposed revision of the Renewable Energy Directive 37 stimulate energy savings which can be strong instruments for alleviating energy poverty. Further to that, the application of the ‘energy efficiency first principle’ will ensure that economically disadvantaged groups will benefit from energy efficiency solutions being considered as the first option in policy, planning and investment decisions and other policy areas. The Energy Efficiency Directive recast proposal furthermore includes a specific obligation for Member States to support energy-poor and vulnerable households to achieve energy savings. The proposed Alternative Fuels Infrastructure Regulation 38 will ensure that charging and refuelling infrastructures for zero emission vehicles will reach all parts of Europe and be accessible to all.
Moreover, while every Member State will have to contribute to the increased emissions reduction target, different starting points and different capacities are taken into account. Instruments such as the Effort Sharing Regulation 39 aim at a fair distribution of efforts between Member States, to ensure solidarity between Member States and regions. The Modernisation Fund 40 supports ten lower-income EU Member States in their transition to climate neutrality by helping to modernise their energy systems and improve energy efficiency. The Just Transition Fund 41 is designed to address the social and economic impacts of the green transition, focusing on the regions, industries and workers who face the greatest challenges during the transition.
The proposed Social Climate Fund will help mitigate the impact on vulnerable households, transport users and microenterprises that are significantly affected by the price increases of fossil fuels as a result of the introduction of emissions trading for fuels used in buildings and road transport. It will promote fairness and solidarity between and within Member States while mitigating the risk of energy poverty and transport challenges, complementing existing mechanisms. The Fund will support households when investing into the energy efficiency and clean heating and cooling of buildings, including the integration of renewable energy, and also finance access to zero- and low- emission mobility. Where needed, pending the impact of the investments on reducing vulnerable groups’ emissions and energy bills, the Fund will enable Member States to finance measures providing temporary direct income support to vulnerable households and households that are vulnerable transport users to reduce the immediate impact of the increase in the price of fossil fuels resulting from the inclusion of buildings and road transport into the scope of Directive 2003/87/EC.
Moreover, as outlined in the impact assessment accompanying the 2030 Climate Target Plan and in some of the initiatives of the ‘Fit for 55’ package, Member States can further make use of the revenue generated from the auctions of the EU ETS allowances, levies and taxes on energy prices, as well as from environmental taxes to support disadvantaged groups.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The proposal will be based on Article 292 TFEU, in conjunction with Article 149 TFEU and Article 166 TFEU.
• Subsidiarity (for non-exclusive competence)
Member States will design and select the measures and investments to ensure a fair transition to climate neutrality, including dedicated measures they can propose under the existing funding, policy instruments and governance mechanisms.
• Proportionality
Action at Union level is necessary to achieve a fast and robust green transition that delivers on the binding targets adopted in the European Climate Law while leaving no one behind, in line with the European Green Deal, European Council’s Strategic Agenda 2019-24, the European Parliament Report on ‘a strong social Europe for Just Transitions’ 42 , the European Economic and Social Committee’s Report on ‘No Green Deal without a social deal’ 43 , and the Committee of the Region’s Opinion on ‘A Strong Social Europe for Just Transitions’ 44 . This also requires that the social and labour challenges arising from the green transition are addressed in a coherent and efficient manner across all Member States.
According to the Commission’s EU-wide assessment of the final integrated National Energy and Climate Plans published in September 2020 45 , additional efforts are required to ensure a clean and fair energy transition in the most affected regions. Guidance to Member States appears necessary and proportionate given the scale and effects of the proposed action.
To avoid unnecessary administrative burden for Member States, the implementation of the policy guidance provided in this Recommendation will be monitored via the European Semester process and other existing processes, notably the Governance of the Energy Union and Climate Action, as adequate.
• Choice of the instrument
The proposed instrument is a proposal for a Council Recommendation, which respects the principles of subsidiarity and proportionality. It builds on the existing body of European Union law and is in line with the type of instruments available for European Union action in the areas of employment and social policy. It lays down measures to be considered by Member States and provides a strong basis for cooperation at European Union level in this area, while fully respecting Member States competence in the relevant policy fields.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
Not applicable.
• Stakeholder consultations
Contents
The services of the Commission have already undertaken a number of general and targeted consultation activities on the green transition, including its social and labour aspects, notably through:
·Targeted consultations, as well as online public consultations as part of the ‘Fit for 55’ legislative packages of July 2021 and December 2021 (e.g. EU Emissions Trading System, Energy Taxation Directive, Energy Efficiency Directive, Energy Performance of Buildings Directive, and others);
·Bilateral/multilateral stakeholder meetings, including more than 50 meetings on the ETS revision, in particular in the context of the package adopted on 14 July 2021;
·An online open public consultation on the 2030 Climate Target Plan (Mar - Jun 2020; over 1,000 replies), following a 4-week consultation on the Inception Impact Assessment.
For the preparation of this proposal for a Council Recommendation, the Commission conducted in October and November 2021 targeted consultations and exchanges with the Employment Committee (EMCO), the Social Protection Committee (SPC), the Economic Policy Committee (EPC), the European social partners, and civil society organisations active in the area of disability, social and employment policies.
Consultations provided a broad support to an initiative addressing social and labour aspects of the transition, ensuring that no one is left behind. More specifically, parties agreed, overall, on the need for several elements: comprehensive policy packages to achieve a fair transition, including measures for up-and reskilling; making good use of existing policies and funding instruments, avoiding duplication and administrative burden; an improved understanding of employment and social impacts of climate change policies, including effects on the quality of jobs, and related monitoring and reporting based on ‘real life data’ and relevant indicators; mainstreaming equality, but also requests for more funds and capacity building, notably for SMEs; integration into existing governance mechanisms; and the involvement of social partners and civil society in the design and implementation of climate change and funding strategies for fair transitions.
The Commission also launched an open Call for Evidence from 29 October 2021 to 19 November 2021, having received 66 contributions from a broad spectrum of stakeholders: public authorities, European and national social partners, civil society organisations in the area of social affairs, but also climate and environmental organisations and academic and research institutions.
Overall, respondents displayed strong support for a long-term strategy on green transition and welcomed the focus on employment and social aspects. More specifically, the potential impact on inequalities, jobs and skills was raised in several contributions, with an overall appeal for providing adequate funding, as well as technical assistance regarding available funding instruments to Member States, notably focusing on vulnerable regions, sectors and groups. Contributions also highlighted an increased need to invest in reskilling and upskilling initiatives, capacity building and infrastructures. There was broad support to strengthening social dialogue and collective bargaining, with some respondents calling for workers’ right to information, consultation and co-decision. Moreover, the vast majority of contributions stressed the need for a granular mapping and analysis. Other issues were mentioned in numerous contributions, notably direct income support measures to vulnerable workers and households, access to essential services, including transport, ensuring health and safety at work which is adapted to ‘green jobs’.
• Collection and use of expertise
The European Commission gathers expertise in social, employment and related policies through, among others, the Social Situation Monitor (SSM) 46 , to foster knowledge in the fields of social policy, social protection and employment while delivering policy-relevant and evidence-based research on the current socio-economic situation in the EU. Four main areas of research are covered by the SSM: Poverty, income inequality, social inequalities, health and well-being; employment, unemployment and labour market outcomes; the welfare state, social, and labour market policies; and labour market and distributional impacts of megatrends.
Following on from earlier events on the topic, in November 2021, the SSM held its yearly research seminar, under the title 'Social and Labour Aspects of the Transition to Climate Neutrality'. The event focused on the potential impacts of the green transition in terms of employment, job quality, skills and other distributional impacts such as energy poverty and access to essential services.
According to the main findings discussed with the experts, at the aggregate level, the expected impact is overall positive, with a boost of employment predicted in the energy-saving, construction and renewable energy sectors, including for low and medium-skilled workers. In contrast, employment and wages are expected to be reduced in energy-intensive and hard-to-abate 'brown industries', highlighting the need for investment in the massive up- and reskilling challenge.
Among the policy instruments identified by the experts to foster a fair transition were taxes, transfers, subsidies and regulations, each entailing diverse levels of equity and efficiency. Experts agreed broadly on the importance of offsetting, through transfers and subsidies, certain regressive or disproportionate effects in particular for low income and lower middle income households, also to garner and safeguard social acceptance of policy measures.
The seminar also identified areas that would benefit from further research, including on: (a) the geospatial dimension of employment, social and distributional effects of climate action, including through further simulations covering all EU countries and estimation of impacts by area and degree of urbanisation; (b) integration of macro- and micro-models, including a more granular modelling of labour market transitions, notably across sectors, and the related social investment needs to support retraining, reskilling and upskilling; (c) integration of income distribution and household budget models into the underlying macro-models; and (d) the development of indicators of the ‘greenness’ of tasks, jobs and skills.
• Impact assessment
The proposed instrument – a Council Recommendation – offers guidance on the implementation of social, employment and related policies to address the challenges of the green transition. However, as it provides flexible guidance to Member States with respect to the choice and design of the measures, an impact assessment is not required.
An accompanying Staff Working Document provides an overview and discussion of the available evidence underpinning the recommended policy interventions, building on the analyses presented in relevant impact assessment reports accompanying the 2030 Climate target plan Communication and the initiatives of the ‘Fit for 55’ package. It integrates new evidence from additional analyses carried out by the European Commission, including updates of energy poverty indicators by income group for those Member States for which 2020 data are already available in the EU-SILC database. Finally, it benefits from the feedback received during targeted consultations in autumn 2021, when the European Commission reached out to, among others, Member States, social partners, civil society, including young people, and experts in the area of labour market analysis, social policy and fair transition.
Demonstrating how the job creation potential of the transition hinges both on the active support to labour market transitions and job creation, and on the ability of workers to obtain a skillset adapted to a labour market and industrial landscape characterised by green jobs and climate-friendly production processes.
Providing modelling evidence for the ability to shift tax revenues away from labour to climate-related revenue generation, to internalise negative environmental externalities by promoting the ‘polluter pays principle’ and improve labour market outcomes while lowering exposure to environmental hazards, not least for the most vulnerable, as well as the ability to mitigate adverse distributional effects through targeted measures transferring back revenues from energy taxes and carbon pricing to the most affected households, in particular vulnerable ones.
Underlining how dedicated investments in energy efficiency, decarbonisation of heating, cooling and transport, access to essential services, including alternative sustainable mobility solutions, and awareness raising, complemented where necessary with temporary and targeted direct income support for vulnerable consumers and households, can ensure a fair and inclusive energy transition, with a focus on the most affected people and households, in particular vulnerable ones.
• Regulatory fitness and simplification
Not applicable.
• Fundamental rights
No negative impact has been identified on fundamental rights. On the contrary, the initiative promotes rights enshrined by the Charter of Fundamental Rights of the European Union, including the Equality and Solidarity titles, such as the right to fair working conditions (Article 31), the right to education (Article 14), and the entitlement to social security and social assistance (Article 34), which refers to social security benefits and social services providing protection in certain cases, as well as the right to social and housing assistance.
4. BUDGETARY IMPLICATIONS
This proposal for a Recommendation does not require additional resources from the EU budget.
Funding opportunities under the EU budget relating to the fair transition towards climate neutrality are already available in line with the policy of objectives and intervention logic of the different funds and programmes 47 .
The Recommendation includes guidance referring to national budgets and their possible role in implementing the Recommendation.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
It is proposed that the Commission monitors the implementation of this Council Recommendation in cooperation with the Member States and in the context of the European Semester.
Moreover, it is proposed that Member States take into consideration this Council Recommendation in the update of their integrated National Energy and Climate Plans (NECPs) in 2023 (for draft NECPs) and 2024 (for the final NECPs) pursuant to Article 14 of Regulation (EU) 2018/1999 on the Governance of the Energy Union and Climate Action (‘the Governance Regulation’) and in their national energy and climate progress reports pursuant to Article 17 of that Regulation. In particular, the Recommendation should inform the mainstreaming of fair transition aspects across the measures and actions foreseen under each of the five dimensions of the Energy Union outlined in Article 1(2) of the Governance Regulation. The Recommendation should also inform specific national actions and measures aimed at addressing employment, skills, energy poverty and other social and distributional aspects of the internal energy market, where Member States choose to take such actions, thereby supporting them, in particular those with a significant number of households in energy poverty, to outline adequate policies and measures addressing the issue in their integrated NECPs in line with Article 3(3d), including social policy measures and other relevant national programmes and policies.
Through the multi-lateral surveillance mechanism and governance mechanisms in place, the Commission will analyse possible impacts of the transition, identify the most affected people and address, where appropriate, country-specific recommendations to Member States in the context of the European Semester, on the basis of the guidelines for the employment and social policies of the Member States.
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
§ 1 to 2 indicates the subject matter, objectives and structure of this Recommendation.
§ 3 contains definitions which are to be applied for the purpose of the Recommendation.
§ 4 to 7 recommend to Member States to establish and implement comprehensive and coherent policy packages for a fair green transition with a view to providing active support to quality employment; ensuring access to quality and inclusive education, training and life-long learning; providing for fair tax-benefit and social protection systems; ensuring access to affordable essential services and housing as part of the transition towards climate neutrality.
§ 8 to 9 recommend to Member States to establish and implement other cross-cutting elements that promote a fair and inclusive green transition, in particular with view to ensuring an inclusive whole-of-economy approach, and providing for a strong evidence base that is needed to put in place sound social and labour market policies promoting a fair and inclusive transition.
§ 10 recommends Member States to make optimal use of public and private funding with view to providing effective financial support, in particular by committing and deploying adequate national resources; designing an adequate mix of measures in the national plans under the proposed Social Climate Fund; and ensuring a coherent and optimal use of funding linked to the fair transition at all levels, including at the EU level.
§ 11 welcomes the Commission’s intention to take follow-up actions to the Council Recommendation, in particular with view to promoting public debate on the fair transition, enhancing the data and methodological basis, monitoring and foresight analysis, reviewing progress in the implementation of this Recommendation in the context of multilateral surveillance notably in the European Semester and in the context of the Energy Union and Climate Action.