How to Reduce Fossil Fuel Dependence With Social-Climate Measures

EUKI project ClimateFair Monitor assesses how Central and Eastern European Member States are preparing for a socially fair transition in buildings and transport under the EU’s climate framework.

This report examines how Bulgaria, Hungary, Latvia, Poland, Romania and Slovenia responded to the 2026 fuel price shock, and what pricing, regulatory and social measures they used to manage it fairly. The publication finds that most countries cut fuel taxes or capped prices, cushioning consumers but weakening the incentive to cut fossil fuel use and mostly benefiting wealthier households. It argues that targeted support for vulnerable groups, funded by windfall and carbon taxes rather than broad subsidies, would protect the poor while preserving the climate signal, and sets out recommendations for governments to shift toward this approach.