Portugal submits Social Climate Plan to the European Commission

Portugal today formally handed over to the European Commission the proposal for the Social Plan for the Climate, with around EUR 1.6 billion, to be implemented by 2032.

The Social Plan for the Climate is intended to support a fair energy transition and protect the most vulnerable groups from rising fossil fuel costs.

It aims to support some 50,000 vulnerable families in measures to support housing energy efficiency and 5,000 vulnerable families in electrifying mobility.

It also aims to support, explains in a statement by the Ministry of Environment and Energy, about 10,000 micro-enterprises from economic sectors more exposed to the increase in fuel costs in the electrification of fleets, and about 700 electric buses to strengthen the supply of transport in low density territories and autonomous regions.

In the statement, the Government specifies that the plan’s objective, managed by the Climate Agency (APC), “is to reduce dependence on fossil fuels and energy expenditure, and thus create conditions for the most vulnerable families and micro-enterprises to benefit from the transition to cleaner and more efficient solutions.”.

Cited in the statement, the Minister of Environment and Energy, Maria da Graça Carvalho, considered the plan as central to the country's energy transition strategy, which should allow the participation of families, companies and territories and ensure that its benefits reach those who need it most.

The Government explains that negotiations with the European Commission now follow for the formal approval of the plan and the start of its implementation, scheduled for the second half of 2027, when the first warnings will be issued.

The Social Plan for the Climate was in public consultation a year ago (after a first stage of public face consultation in several cities), when the Government asked for contributions from families, companies and organizations for a fairer and more effective document.

It was announced by the Government as part of the establishment of the Climate Agency, to be in force between 2026 and 2032, but only now has it been formally submitted.

It was created under the new European Trade in Emissions Licences (CELE2) and seeks to compensate for the effects of future carbon taxation on buildings and road transport, “stimulating the adoption of cleaner and more efficient energy”.