EU and Greece collaborate on green energy initiatives

Brussels (Brussels Morning Newspaper) – Agreement signed between Greece, the European Investment Bank and the Commission on a Decarbonisation Fund for Greek islands.

Executive Vice-President of the European Commission for the European Green Deal Maroš Šefčovič has signed with Greece and the European Investment Bank (EIB) an arrangement for the enactment of a national Decarbonisation Fund for the Greek islands, in Naxos (Greece) on 21 Nov 2024. Greek Minister of Environment and Energy, Theodoros Skylakakis, and EIB Vice-President, Ioannis Tsakiris co-signed the joint accord. 

How will the fund support renewable energy projects?

As reported by the EU Commission, this fund will be financed through the auctioning of up to 25 million assistance from the EU Emission Trading System (ETS), calculated to be worth about €2 billion. 

More than half will be supported by new renewable energy supply on the islands, including photovoltaic systems, offshore wind farms and stand-alone storage procedures. The Fund will also back the demand and distribution of renewable energy via schemes such as charging stations for electric vehicles and electricity interconnections. Finally, it will assist in climate adaptation and building strength to extreme weather circumstances. This is especially critical for Greece which is one of the most weak Member States in terms of climate risks. 

What socio-economic benefits will the decarbonisation projects bring?

In his remarks, during the signing ceremony, Executive Vice-President Šefčovič stated: “Today’s signature of the trilateral deal with Greece and the European Investment Bank is a key landmark to enable the financing of investments in the decarbonisation of the Greek islands. Greece has a very enterprising project portfolio in the making that will not only help lower emissions and dependencies on fossil fuels but also generate substantial socio-economic benefits.” 

Moreover, Šefčovič pointed out that it will be funded by the EU emission trading system. This is a great illustration of the opportunities formed by carbon pricing to facilitate green investments. He highlighted that the Commission stands ready to persist in supporting Greece in ensuring that climate policy goes hand in hand with just growth and industrial competitiveness.