Naxos: Executive Vice-President for the European Green Deal, Maroš Šefcovic, has signed a significant agreement involving Greece and the European Investment Bank (EIB) to implement a national Decarbonisation Fund for the Greek islands. This landmark agreement, signed in Naxos, aims to transition the Greek islands towards a greener future.
According to Cyprus News Agency, the Decarbonisation Fund will be financed through the auctioning of up to 25 million allowances from the EU Emission Trading System (ETS), with an estimated value of £2 billion. Over half of the funds are earmarked for new renewable energy projects on the islands, such as photovoltaic systems, offshore wind farms, and stand-alone storage systems. The initiative also includes supporting renewable energy demand and distribution through projects like electric vehicle charging stations and electricity interconnections. Additionally, the fund will aid climate adaptation and enhance resilience against extreme weather events, addressing Greece’s vu
lnerability to climate risks.
During the signing ceremony, Executive Vice-President Šefcovic highlighted the agreement’s importance, stating it is a critical step towards financing investments in the decarbonisation of the Greek islands. The ambitious project portfolio in Greece will not only reduce emissions and reliance on fossil fuels but also generate socio-economic benefits. Supported by the EU Emission Trading System, the initiative exemplifies how carbon pricing can facilitate green investments. Šefcovic emphasized the Commission’s commitment to supporting Greece in ensuring that climate policy aligns with just transition and industrial competitiveness.
Greek Minister of Environment and Energy, Theodoros Skylakakis, and EIB Vice-President, Ioannis Tsakiris, co-signed the agreement. The full remarks of the Executive Vice-President are available online.
This agreement underscores the EU’s commitment to sustainable finance and its role as a global leader in this sector. The EU has issued over £65 billi
on in NGEU Green Bonds, positioning itself as the largest issuer of Green Bonds worldwide. Through these bonds, the EU aims to fund £264.6 billion worth of green investments across nine sectors, including clean transport and energy efficiency, reinforcing its leadership in the global green transition.