A Just Transition[1] necessitates that access to “sustainability service”, namely clean energy, sustainable transportation, and effective waste management, is universal and equitable. This means all populations, regardless of income, region, or cultural background, can reliably afford to consume these services at a similar level of quality. Indeed, the European Pillar of Social Rights explicitly lists energy, transport, water, and digital connectivity as among the services that everyone should have equal right of access.

Earlier in the year, I wrote about the rise of climate skepticism in the EU, highlighting how the socioeconomic impacts of climate policies, such as higher energy prices and structural economic changes leading to job losses, have disproportionately affected certain demographic groups. Similarly, the ability to access and benefit from sustainability services provided through EU climate policies remains strongly correlated with socioeconomic status.

Access to clean energy in the EU is high in a basic sense, as nearly 100% of households are connected to the grid; however, equitable consumption of affordable, sustainable energy is far from being achieved. Energy poverty—the inability to adequately heat, cool, or power one’s home—persists in all Member States, but is concentrated in certain regions. Southern and Eastern Europe see the highest rates. In Greece and Bulgaria, nearly 30% of households were considered energy poor,[2] in contrast to 5% of households in the wealthier western and northern countries. The North-South divide became even more evident during the recent energy price crisis. In 2023, the proportion of households that could not keep their home adequately warm rose from 9.3% in 2022 to 10.6%. However, this was not equally distributed; in countries like Lithuania, Cyprus, Greece, Bulgaria, and Portugal, 20-22% of households were unable to keep their homes warm, compared to only 2-3% in more affluent states like Finland and Luxembourg.

Energy poverty correlates strongly with household income. It is perhaps unsurprising that those most at risk of poverty or social exclusion face the greatest barriers to affording energy. The greater the proportion of a household’s budget spent on essential services, such as energy, the greater the sensitivity to changes in price. Households classified as poor tend to spend about 60% more of their household budget on essential services than richer households[3]. This leaves them both vulnerable to shocks and erodes their ability to make longer-term decision, that would reduce their long-term expenditure, but which require capital outlay in the short-term, such as insulation or a heat pump, thus trapping them in a self-reinforcing cycle of high time preference and high living costs, the so-called poverty trap. Housing quality and tenure also play a role. Renters or those in older buildings often have less control over heating and insulation systems, which can result in high bills, especially when there is a sudden increase in energy costs.

Poor infrastructure and geography are also important factors affecting access to sustainable services. Remote or rural areas, physical distance, and population density influence infrastructure decisions, resulting in a reduction in the physical availability of services. For example, public transport coverage in sparsely populated areas is often minimal[4]. Equally, remoteness from urban centers means fewer alternatives for energy (limited grid or gas network) and sporadic waste collection.

Underserved populations

Rural populations in many member states also have lower than average incomes and higher poverty rates than their urban counterparts. For example, in Romania, 75% of all those considered to be living in poverty live in rural parts of the country[5]. These communities tend to have older populations and face higher unemployment rates, driving younger people toward urban centers in search of work. This affects their spending power as a demographic, compounding the effects of remoteness and leaving them marginalized and underserved.

Ethnic minorities, particularly the Roma, Europe’s largest minority group, have faced chronic exclusion from basic services. In 2020, an estimated 10 million Roma lived in Europe (around 6 million in the EU), many in segregated settlements or slums on the outskirts of cities or in remote enclaves[6]. Socio-economically, Roma communities often endure extreme poverty, high unemployment, and very low educational attainment. A large share of Roma live in informal housing that lacks official electricity, piped water, sewage, and municipal waste[7]. Culturally, they frequently face discrimination and antigypsyism, which not only leaves them underserved but has relegated them to the margins of society; Roma settlements are often located adjacent to landfills, industrial zones, or polluted areas, effectively making them victims of environmental racism[8].

Recent migrants and asylum seekers are another group facing significant structural barriers to sustainable services. This category includes recent immigrants living in poor urban quarters, undocumented migrants, and people in refugee or transit camps. Recent migrants often lack the support structures that longer-term residents have. As a result, they are more likely to be unemployed or in low-wage informal jobs and are forced to reside in overcrowded, insecure housing, which they have little control over. As a result, this housing is often old and energy-inefficient, and as newcomers, they may lack the capital or authority to improve it. Compounding their vulnerability, migrant status can also mean language barriers and limited awareness of rights or programs that could assist with energy costs or mobility. Globally, nearly 90% of refugees living in rural settlements have very little access to dependable, sustainable electricity or cooking fuels.[9].

EU Policy Response

Ensuring a “just transition” that leaves no one behind has become a central foundation of EU policy. To achieve this, the EU has established a robust framework of funding mechanisms, laws, and initiatives to promote equitable access to clean energy, transport, and waste services. Key measures include:

• The European Pillar of Social Rights (Principle 20) affirms the right to essential services, such as energy and transport, for all.
• Targeted funding, such as the Just Transition Fund (€17.5 billion) to support fossil-fuel-dependent regions and workers[10], and an €86.7 billion Social Climate Fund from 2023 to help vulnerable households cope with carbon pricing in transport and heating[11]
• Cohesion Policy instruments, such as the European Regional Development Fund and the Cohesion Fund, are financing infrastructure to expand access and improve public transport and clean energy in poorer regions. For instance, the funds helped raise rural waste service coverage in Romania from 45% to 100%[12]

EU legislation also directs Member States to protect vulnerable energy consumers, prevent disconnections, ensure affordable transport (e.g., through public service obligations), and meet ambitious waste and recycling targets through numerous programs, including the Energy Poverty Advisory Hub, sustainable urban mobility plans, and legal acts. The EU’s ongoing Green Deal initiatives and the Recovery and Resilience Facility reinforce the goal of equity, channeling investments into energy-efficient housing, clean transport infrastructure, and inclusive climate action.

These combined efforts have yielded some improvements. EU statistics show a gradual reduction in the share of people unable to keep their homes warm before the recent energy crisis, down to 6.9% in 2021 (though it spiked to 10.6% in 2023 due to external factors). Several countries have seen tens of thousands of homes refurbished for energy efficiency, directly reducing energy bills for low-income households. Public transport usage has increased in cities that adopted free or subsidised fare schemes, with more low-income riders now using these systems.

While there is a clear trend towards viewing access to clean energy, mobility, and waste services as part of social rights and inclusive growth, challenges remain in ensuring a Just Transition. Access to sustainable services remains closely tied to poverty and social inclusion. Despite extensive EU policy measures, as of 2024, more than 35 million people across the EU remained energy-poor, highlighting the persistent gap between policy objectives and on-the-ground realities.

This Post was submitted by Climate Scorecard EU Country Manager George Scott

[1] Just transition is the term used to describe the transition to a climate-neutral economy while securing the future and livelihoods of workers and their communities (https://www.eurofound.europa.eu/en/topic/just-transition)

[2] https://joint-research-centre.ec.europa.eu/jrc-news-and-updates/whos-energy-poor-eu-its-more-complex-it-seems-2024-09-25_en

[3] https://territoriall.espon.eu/articles/266050?article=16-1#

[4] https://focus.si/wp-content/uploads/2023/03/Romania_en.pdf

[5] https://focus.si/wp-content/uploads/2023/03/Romania_en.pdf

[6] https://www.theguardian.com/world/2020/apr/06/roma-suffer-under-eus-environmental-racism-report-concludes

[7] https://www.theguardian.com/world/2020/apr/06/roma-suffer-under-eus-environmental-racism-report-concludes

[8] Ibid

[9] https://www.newslettereuropean.eu/energy-poverty-migrants/

[10] https://transport.ec.europa.eu/transport-themes/social-issues-equality-and-attractiveness-transport-sector/social-issues/access-transport-all_en

[11] https://www.nature.com/articles/s41599-024-03163-6

[12] https://ec.europa.eu/regional_policy/en/newsroom/news/2021/03/03-04-2021-eu-cohesion-policy-over-eur77-million-for-a-more-efficient-and-sustainable-waste-management-system-in-romania