• Ursula von der Leyen successfully adopted the €86.7 billion Social Climate Fund to support vulnerable groups during the green transition
• The Fund passed with strong parliamentary support, overcoming the opposition from Finland, Poland, Belgium and conservative groups
• The Fund directly responded to public opinion and aimed to  strengthen Ursula von der Leyen’s popularity

Why is Ursula von der Leyen BLAZING?

Answer: Ursula von der Leyen successfully adopted the Social Climate Fund as part of the Fit for 55 package, with the purpose of protecting vulnerable groups in the green transition. 

In 2021, Ursula von der Leyen, the President of the European Commission, introduced the Fit for 55 legislative package as part of the European Green Deal. Among its 15 proposals was the Social Climate Fund, which aimed to address the social consequences of carbon pricing by supporting vulnerable households, micro-enterprises, and transport users. The Fund’s budget was set at €86.7 billion, operating from 2026 to 2032, with member states required to cover 25% of the total costs.

Despite initial opposition, the Social Climate Fund has been successfully adopted as part of the Fit for 55 agenda, largely in its originally proposed form. To access the funding, member states are required to submit a national plan that must receive the approval of the European Commission. Although its goals are ambitious, implementation is ongoing, with member states still in the drafting and submitting process. To date, the only member states whose submissions have been accepted are Sweden and Lithuania, whilst several countries are still in the assessment stage. Sweden’s plan includes mobilising €532.8 million for 115,500 households, and Lithuania’s plan allocates €884 million for 74,000 households, 74,000 transport users, and 3,200 micro-enterprises.

What is changing Ursula von der Leyen’s heat level?

Answer: Although the Fund faced veto-player resistance, the €86.7 billion that directly addresses fears from vulnerable groups boosts von der Leyen’s popularity.

In the European Council, Finland was the only member state that voted against the proposal, while Belgium and Poland abstained. As a result, there was no unified opposition that represented a strong challenge in the Council. In the European Parliament there were 521 votes in favour, 75 against, and 43 abstentions. The opposition came from the Identity and Democracy group and the European Conservatives and Reformists, both representing right-wing and populist forces within the EU.

The European People’s Party, the Progressive Alliance of Socialists and Democrats, Renew Europe and the Greens/European Free Alliance offered major support, giving the Fund a safe majority. Consequently, the proposal passed without serious amendments or setbacks, which allowed von der Leyen to claim a political victory. 

The Social Climate Fund was designed to prevent the green transition from affecting vulnerable groups, making it a direct response to widespread public concerns about the social costs of the green transition. Operating under the motto ‘no one left behind‘, the Fund ensures that the shift to a greener economy will be fair and inclusive. Yet in 2023 and 2024, farmers across Europe protested against the Green Deal because they felt left behind. These protests were a serious political problem for von der Leyen, as they threatened to undermine her climate agenda. By allocating €86.7 billion between 2026 and 2032 to support vulnerable households, small businesses, and transport users, von der Leyen demonstrated that she is attentive to Europeans’ concerns. 

What is driving Ursula von der Leyen?

Answer: The Social Climate Fund was driven by von der Leyen’s fear that without safeguards, carbon pricing would trigger public and parliamentary opposition, risking her climate agenda.

The initial problem with Fit for 55’s carbon pricing on buildings and road transport was the increased costs for ordinary consumers. For the first time, carbon markets would have a direct effect on the population. Without a safety net, the policy risked provoking strong opposition from both the public and centre-left political groups. As a result, the Social Climate Fund was created. It is financed mainly through revenues from the European Union Emissions Trading System 2 in the buildings and road transport sectors, with member states co-financing through national social climate plans. This ensures the green transition does not strongly affect vulnerable groups. The Social Climate Fund aims to fulfill von der Leyen’s promise to make climate policy socially fair. 

The Fund also served a political purpose, as centre-left and Eastern European member states, concerned about the social costs of carbon pricing, could have resisted Fit for 55. The Fund therefore secured cross-coalition support and legislative legitimacy. Nevertheless, critics argue the Fund is undersized and provides inadequate coverage for vulnerable groups and low-income states. 

The Social Climate Fund is a political stabiliser for the Fit for 55 package, yet there is a gap between policy ambition and public awareness. While 88% of Europeans support a green transition that leaves no one behind, few are aware that this fund exists. Although no specific data exists on public awareness of the Social Climate Fund, surveys on EU funding provide a useful reference point. According to the Flash Eurobarometer on citizens’ awareness of EU regional policy, only 39% of Europeans are aware of EU support in their area. Given that the Fund is relatively new, it remains a less familiar instrument.

What does this mean for you?

Answer: Ursula von der Leyen is adapting her climate agenda to address the social realities of EU citizens.

For vulnerable households, the €86.7 billion Fund represents a safety net during Europe’s shift to a greener economy. After all, the farmer protests across Europe made it clear that climate policy without social safeguards risks turning public opinion against the green agenda. In this regard, the Fund shows that von der Leyen listened to EU citizens and responded to their concerns.

Ultimately, the Fund’s success depends on how member states implement their national plans and make their citizens aware of the Fund. If awareness remains low, the Fund’s impact could be weakened, damaging the policy and von der Leyen’s credibility. However, if member states successfully raise awareness, the Fund could serve as a model for future policies.

IE x RAIA Summer Research Programme:

This article is an excerpt from a report on Ursula von der Leyen produced as part of a RAIA research programme on climate leaders. For a full picture of von der Leyen’s climate leadership, including the sources, read the full report. This project was fully financed by IE University’s School of Politics, Economics and Global Affairs and School of Science and Technology.

Authors: Daria Holtea, Bianca Albu & Ariadna Alvarenga

Editor: Dario Hasenstab

Project Lead: Dario Hasenstab