The European Commission has approved Malta’s plan to use EU funding to help vulnerable households and small businesses adapt to the shift towards cleaner energy.Malta’s Social Climate Plan will receive €60.6 million in funding by 2032, including €45.5 million from the European Union. The money comes from revenues generated through carbon pricing and is intended to ensure the transition to cleaner energy is more affordable for those most affected.Part of the funding will help vulnerable households make their homes more energy efficient and improve apartments in public social housing. This includes practical upgrades such as better roof insulation, installing solar panels with battery storage and replacing older water heaters with more energy-efficient heat pump systems.The funding comes through the EU’s Social Climate Fund, which was set up to help member states support households and businesses during the transition to cleaner energy while ensuring “no one is left behind”, according to the European Commission.The fund will run from 2026 to 2032 and is expected to provide at least €86.7 billion across the EU. It will be financed through revenues from the bloc’s new emissions trading system covering buildings, road transport and other sectors, together with contributions from member states.Malta’s plan also includes measures to improve transport for more than 30,000 vulnerable people by expanding door-to-door community transport services. It will also help small businesses that rely on transport by making electric vehicles and charging infrastructure more affordable, supporting their switch away from petrol and diesel vehicles.According to the Commission, these measures are expected to help reduce energy poverty in Malta and cut greenhouse gas emissions by around 3,500 tonnes of CO₂ equivalent between 2026 and 2032.The Commission said the plan was drawn up in consultation with Maltese stakeholders and concluded that it adequately addresses the social impact of extending emissions trading to buildings and road transport.Once Malta begins implementing the measures and achieves its first investment milestones, it will be able to apply for its first payment from the European Commission.Featured image: NSO•