EU approves Lithuania's 884 million euro plan to shield vulnerable households from green transition costs

The European Commission has approved Lithuania's Social Climate Plan, unlocking 884 million euros through 2032 to help low-income households and micro-enterprises cope with rising energy and transport costs linked to the green transition. The funding comes from the EU's Social Climate Fund, which uses revenue from carbon pricing on buildings and road transport fuels. Lithuania will contribute 221 million euros of the total. The plan includes covering 50% to 85% of renovation costs for over 40,000 vulnerable households, building energy-efficient social housing, and setting up regional Energy Advisory Hubs. For transport, it funds over 7,000 electric vehicles for public and private use, 280 km of bike lanes, and reduced public transit fares for an estimated 320,000 users. The Social Climate Fund is expected to mobilize at least 86.7 billion euros across the EU from 2026 to 2032.