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Ministry of Funds and Regional Policy Ends Consultations on the Social Climate Plan, Paving the Way to Secure €11.4 Billion from the EU Social Climate Fund

AUTOMOTIVEMinistry of Funds and Regional Policy Ends Consultations on the Social Climate Plan, Paving the Way to Secure €11.4 Billion from the EU Social Climate Fund

At the end of June, the Ministry of Funds and Regional Policy completed consultations on the Social Climate Plan (PSK), which opens the door to obtaining PLN 65 billion (EUR 11.4 billion) from the EU Social Climate Fund. Poland will be the largest beneficiary of this fund, with 37.5% of the budget allocated to direct support for people exposed to transport poverty. However, industry organizations have expressed concerns during the consultations about the spending priorities and the methods of supporting investments in cycling transport.

The new emissions trading system (ETS2) is scheduled to begin operating in 2027 and will cover the transport and building sectors. In the event of exceptionally high gas or oil prices in 2026, the system’s launch may be postponed to 2028. The European Parliament and the Council of the EU established the Social Climate Fund (SCF) to help households, small businesses, and transport users in difficult situations mitigate energy poverty. The fund will operate from 2026 to 2032, with a budget of EUR 65 billion, fully financed by the sale of emission allowances under the ETS2 system. Poland will be the largest beneficiary, with a baseline allocation of EUR 11.4 billion.

“Transport proposals in the Social Climate Plan (PSK) are inadequate relative to the scale of challenges facing Poland. Only 21% of the total budget, i.e., merely EUR 3.2 billion, is allocated to the road transport sector — that is 46% less than the amount reserved for the building sector. This disparity is incomprehensible, especially since transport poverty affects up to 15 million Poles,” said Agata Wiśniewska-Mazur, Deputy Director of the Polish Association of New Mobility, in an interview with the Newseria news agency.

The introduction of ETS2 in the transport sector is intended as an economic incentive to invest in environmentally friendly modes of transport that will help reduce greenhouse gas emissions. However, it will increase operating costs of combustion engine vehicles, especially the oldest ones, thereby limiting the ability of many people living in smaller towns and rural areas to commute to larger centers.

“Particularly worrying is the proposed support for low-emission buses powered by natural gas. This solution contradicts EU climate goals and the ‘Do No Significant Harm’ (DNSH) principle, which may result in the entire plan being rejected by the European Commission. Public funds should finance future technologies, not past ones,” Agata Wiśniewska-Mazur emphasized.

The new mobility sector calls for increasing the budget allocated to road transport and withdrawing support for low-emission buses fueled by fossil fuels. According to the expert, the PSK draft presented by the Ministry of Funds and Regional Policy practically ignores the needs of individual road transport. Although the government itself admits that the fuel price increases caused by ETS2 will have a greater impact on transport-excluded communities—where low-income users, forced to give up purchasing more expensive fuel, will not be able to switch to public transport alternatives.

“There is a lack of a social leasing program for electric vehicles, which works successfully in France. It is also essential to support shared mobility and the expansion of charging infrastructure in municipalities with fewer than 50,000 residents,” pointed out the Deputy Director of PSNM. “When discussing PSK, one must not forget about cycling, pedestrian transport, and micromobility, which also require more support than currently planned. Cycling infrastructure, bike-sharing systems, and electric scooters are affordable solutions that can be implemented faster than long-term railway or road investments.”

PSK foresees support for the development of cycling infrastructure (bike lanes, bike parking at transit hubs), including the construction of new public bike systems. The project authors intend these investments to respond to the growing needs of residents, especially in areas threatened by transport poverty, aiming to increase access to low-emission mobility forms. The investments will be managed by regional authorities, which as intermediary institutions will be responsible for calls, project evaluation, and implementation. This approach aims to tailor actions to local needs and spatial conditions.

Experts from the ZDG TOR advisory team believe that PSK has the potential to significantly support the development of cycling in Poland, but only if investments are planned systemically, according to standards, and based on real residents’ needs.

“From the perspective of the ZDG TOR Economic Advisory Team, which supports local governments in just transition, cycling investments in PSK represent a step towards fairer and more accessible mobility. Bicycles as a mode of transport not only support climate goals but also tangibly improve residents’ quality of life—especially where public transport access is limited,” commented Maciej Mysona, ZDG TOR expert. “PSK can be a stimulus for the development of cycling in our country; however, it should be remembered that the priority must be a lasting change in Poland’s mobility model. Sustainable modes of transport, such as bicycles, public transport, and demand-responsive transport, should be more accessible. It is important that implemented solutions are networked, systematic, and integrated.”

ZDG TOR submitted several comments during PSK consultations. Regarding cycling investments, the document requires significant supplements, in their opinion. It lacks guidelines on the scale, function, and integration of planned public bike systems. Without defining their role as feeder services to rail or buses, there is a risk that funds will be allocated to local, uncoordinated recreational projects rather than transport-focused initiatives. According to the advisors, supported systems should be regional, integrated with public transport (e.g., by locating stations near stops, joint tariffs), and embedded in broader mobility strategies.

“We also point out the cost range for bike systems is too broad and simultaneously too low—from PLN 200,000 to 2.3 million. These amounts are insufficient for systems covering larger areas. We propose raising the limit to PLN 4–5 million and introducing minimum indicators such as one bike per 500 inhabitants and the number of residents covered by the system. This approach will better tailor investments to local needs and increase their efficiency,” explained Maciej Mysona.

The team also recommends roofing bike parking at railway stations and rewarding projects that use renewable energy sources (e.g., photovoltaic panels powering lighting, monitoring, or electric bike charging).

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