Monthly National Update: July
Developments across Central and Eastern Europe in July showed how energy security, extreme weather, and concerns over energy prices are increasingly influencing discussions around climate policy. While some countries moved forward with Social Climate Plan (SCP) preparations and access to EU funding, political resistance to ETS2 remained strong in parts of the region. At the same time, civil society organisations continued their advocacy on socially fair climate policies, EU funding, and preparations for the next Multiannual Financial Framework (MFF).
In Hungary, an extreme July heatwave pushed electricity demand to record levels and placed significant pressure on the power grid. Low water levels in the Danube also temporarily affected the operation of the country’s nuclear power plant. In response to these challenges, the government is preparing a comprehensive energy development plan that foresees expanding energy storage capacity, upgrading grid infrastructure, and investing in wind and geothermal energy, drawing on national, EU, and private funding. Civil society advocacy continued in parallel, with the Assessment of the Performance Regulation disseminated widely among EU institutions, national authorities, and other stakeholders. Clean Air Action Group also contributed to discussions on the future EU budget and held its first meeting with the Hungarian Finance Ministry after a 16-year pause, opening discussions on budget-neutral proposals for the 2027 national budget.
A significant development took place in Latvia, where the European Commission approved the country’s Social Climate Plan on 20 July. Attention can therefore increasingly shift from preparation towards implementation and ensuring that the measures deliver effective support for vulnerable households and transport users. Green Liberty presented its analysis of the Latvian plan within the Social Climate Plan working group network, while preparations continued for the fourth thematic report and the project’s final conference in Brussels.
In Bulgaria, discussions around both ETS and the Social Climate Plan continued. During an informal meeting of the EU Competitiveness Council in July, Bulgaria called for a comprehensive assessment of the impacts of the EU Emissions Trading System. At national level, a public consultation was launched on the designation of institutions responsible for preparing and managing Bulgaria’s Social Climate Plan and their respective functions. The government is considering transferring responsibility for the transport component of the plan to the Ministry of Transport. Civil society organisations have meanwhile begun preliminary work on the fourth thematic report and preparations for the final conference in Brussels.
Poland continued to stand out for its political resistance to ETS2, with no progress on implementation during July. Right-wing political parties proposed legislation aimed at removing the emissions trading system from Polish law, while the President continued to call for a referendum on climate policy. Parliament rejected the referendum proposal for the second time. At the same time, discussions around energy affordability remain prominent: the government is considering a second package of measures aimed at reducing fuel prices, while legislation concerning a windfall tax on energy companies has been referred by the President to the Constitutional Court. Civil society organisations continue to engage in both debates, arguing that recurring fossil fuel price crises demonstrate the need to reduce dependence on fossil fuels rather than delay the transition.
In Romania, there were no significant new developments regarding the Social Climate Plan. With a caretaker government in place, Parliament has been responsible for adopting legislation necessary to meet requirements for accessing the next tranche of funding under the National Recovery and Resilience Plan. Civil society organisations continue to monitor developments related to EU funding and the SCP, while preparing the fourth thematic report and the final project conference. Engagement is also beginning around preparations for the next EU programming period.
Across the region, July highlighted the increasingly close connection between climate policy, energy security, public finances, and resilience to extreme weather. Hungary’s heatwave demonstrated the growing pressure climate impacts can place on national energy systems, while debates in Poland and Bulgaria showed that concerns over energy prices and competitiveness continue to fuel political resistance to emissions trading. Latvia’s approved Social Climate Plan, meanwhile, marks an important step towards moving from planning to implementation and provides an opportunity to demonstrate how revenues and EU funding can support a socially fair transition.
At the same time, civil society organisations are increasingly looking beyond the immediate implementation of ETS2 and the Social Climate Fund towards the next EU budget period. Engagement with national governments, MEPs, the European Commission, and other stakeholders will therefore remain important in the coming months, alongside work on the fourth thematic report and preparations for the final conference in Brussels. Ensuring that future funding supports energy efficiency, clean energy infrastructure, and vulnerable households will be central to maintaining both climate ambition and public support for the transition.
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