Monthly National Update: May
Political developments across Central and Eastern Europe continue to shape the implementation of climate and energy policies, particularly regarding ETS2, Social Climate Plans (SCPs), national recovery funding, and preparations for the next EU budget cycle.
Several countries in the region have recently experienced political transitions. In Hungary, a new government took office in May, prioritising transparency and systemic reforms. The review of Recovery and Resilience Facility (RRF) chapters and REPowerEU funding has already begun, with a focus on preventing funding shortfalls and directing investments towards areas such as smart grid development and residential decarbonisation. At the same time, Hungarian civil society organisations remain actively engaged in discussions on energy subsidies, public funding, and social climate policies. A workshop on ETS2, the Social Climate Fund (SCF), and the future Multiannual Financial Framework (MFF) brought together environmental organisations to discuss the question of who should bear the costs of the green transition. Advocacy efforts have also included exchanges with DG ENER and a widely publicised open letter from economists calling for the gradual phase-out of fuel price controls accompanied by targeted social compensation measures.
Political changes have also marked developments in Bulgaria, where a new government assumed office in May and immediately focused on advancing Recovery and Resilience Plan reforms and securing pending EU funding installments. Together with several other Member States, Bulgaria has called on the European Commission to freeze free ETS allowances at last year’s levels, citing concerns about the impact of rising energy prices on industrial competitiveness. Meanwhile, discussions around the Social Climate Plan remain limited, with civil society organisations concentrating on analytical work, thematic reporting, and preparations for future debates on the next EU budget framework.
In Latvia, attention is increasingly turning towards implementation of the National Social Climate Plan as the country prepares for parliamentary elections later this year. Civil society organisations have focused on public outreach through regional media.
Political uncertainty also remains a defining factor in Romania, where the government was recently removed through a vote of no confidence. While there has been little progress on the Social Climate Plan, significant national funding continues to be allocated through the Environmental Fund Administration, including substantial resources for energy efficiency measures. Romanian NGOs continue to engage with policymakers and public institutions while monitoring possible scenarios for the formation of a new government.
In Poland, progress on ETS2 implementation, the Social Climate Plan, and the National Energy and Climate Plan remains limited. However, discussions have intensified around the introduction of a windfall tax on petroleum companies. Environmental organisations have jointly advocated for directing potential revenues towards social climate measures and supporting a fair introduction of ETS2, while also exploring short-term policies to reduce fuel consumption and shield vulnerable households from energy price shocks.
Slovenia has entered a particularly challenging political period following the formation of a new government that includes climate-sceptic voices and has abolished the dedicated climate ministry. The coalition agreement even includes a commitment to work towards the abolition of the EU Emissions Trading System. Nevertheless, public participation processes for the new National Energy and Climate Plan have been launched, creating important opportunities for stakeholder engagement. Civil society organisations have responded by organising workshops on socially fair responses to fossil fuel price increases, contributing to NECP consultations, and participating in discussions on the future of EU climate policy beyond 2030.
At the European level, attention is increasingly focused on the future of ETS2, the development of Social Climate Plans, and negotiations surrounding the next Multiannual Financial Framework. Lithuania’s recently approved Social Climate Plan is attracting interest as a potential source of good practice measures for other Member States. At the same time, discussions around reforms to the existing EU Emissions Trading System (ETS1) are creating uncertainty, with concerns that negotiations on ETS1 could spill over into debates on ETS2 and potentially affect the overall level of climate ambition.
Across the region, rising energy prices linked to geopolitical tensions, political transitions, and ongoing debates about public funding continue to influence climate policy discussions. In response, civil society organisations remain focused on ensuring that climate measures are socially fair, effectively financed, and capable of supporting both vulnerable households and long-term decarbonisation goals.
Foto: Pexels/Shox Art
