An annual €476 credit to cover the additional costs of the energy transition
Alternative proposal to the government’s social climate plan by the Citizen’s Climate Lobby España
First Published in Spanish in El Pais, August 13, 2026
In January 2028, the EU’s new Emissions Trading System—known as ETS2—will come into force. Like the existing ETS1, it is built on the principle that “the polluter pays.” ETS1 covers carbon emissions from industrial sectors such as power generation, steel, and cement. The new ETS2 extends carbon pricing to transport and heating, which together account for more than 40% of Spain’s emissions. ETS2 will have a direct impact on fossil fuel prices for consumers.
As fossil fuels become more expensive, cleaner transport and heating systems will become relatively cheaper. But higher fossil fuel prices fall disproportionately on vulnerable households, which is why the European Union foresees compensation through the Social Climate Fund. Spain’s Government recently proposed a €9.099 billion Social Climate Plan over seven years—75% financed by the EU—designed to shield vulnerable households from ETS2‑related price increases and help them invest in cleaner transport and home‑heating options.
A well‑designed, well‑executed programme could demonstrate that the energy transition can also improve equity. Unfortunately, the Government’s proposal risks failing on its own terms: too many interventions, each small, complex, and difficult to access due to bureaucratic barriers, would leave much of the vulnerable population unprotected.
Take one example. The plan allocates €740.5 million to create a Social Unified Transport Pass, distributed free or at low cost to recipients of Non‑Contributory Pensions (PNC), Minimum Insertion Income (RMI), Minimum Vital Income (IMV), and SOVI pensions. These groups total around 2,100,000 people. Yet the budget amounts to barely €50 per person per year, while the current Unified Pass costs €60 per month (€720 per year). On top of that, potential beneficiaries would need to apply and undergo a bureaucratic screening process. Does such a cumbersome process make sense for such limited support?
The Social Unified Pass illustrates a paradox running through nearly all the proposals in the Social Climate Plan: the inefficiency of a selective approach. Targeted subsidies spread across too many objectives end up excluding large segments of vulnerable households. They aim for efficiency but risk wasting money and legitimacy through administrative burden and low uptake.
It doesn’t have to be this way.
A more effective approach would be to make funds available directly to all vulnerable households, allowing them to use the support as they see fit. Some would use it to cover higher transport and heating costs. Others would invest in cleaner alternatives. Many would do both. A parallel communication campaign—explaining the purpose of the support—would help build public understanding of climate policy and guide beneficiaries toward the best use of the funds. The essential feature of any compensation policy is that beneficiaries receive support quickly and easily.
Citizens’ Climate Lobby proposes one possible alternative: an Energy Transition Support Credit (BATE). Every eligible citizen would receive an annual €476 credit to spend on approved uses—from purchasing clean energy (electricity), public transport passes, or electric personal mobility vehicles, to installing insulation or clean heating systems.
Beneficiaries could include the currently defined vulnerable groups, as well as households below an income threshold set by the Government. The Government would create a national registry of beneficiaries (updated annually), notify them that their support has been pre‑approved, and explain the permitted uses. The only step required from recipients would be to confirm eligibility and accept the support—similar to confirming the draft personal income tax return. The BATE could be delivered as a physical or virtual restricted‑use payment card for the goods and services defined in the Social Climate Plan.
In short, the 13 measures in the current draft Social Climate Plan could be replaced with a single simpler, more efficient system—easier to administer, evaluate, and adjust when needed. Putting euros directly into people’s pockets would boost demand for clean transport and heating while giving each person the ability to choose what best fits their circumstances.
Climate policy—like any policy—is only as strong as its weakest administrative link. Selective, bureaucratic subsidies erode public trust in climate action at a moment when its opponents have never been more vocal. Spain cannot afford a legitimacy crisis at this stage of the energy transition.
Spain is recognised as one of the world’s leaders in the energy transition. The implementation of ETS2 offers an opportunity to extend that leadership and show that climate policy can also advance equity.
Rafael Pinilla, Citizens Climate Lobby España & Paul Mottram, Citizens Climate Lobby Europe