Brussels: Today, the European Commission approved Greece's Social Climate Plan, marking the fifth and largest national plan under the Social Climate Fund. The plan, developed collaboratively by Greek authorities and the Commission, aims to facilitate a cleaner transition and provide support to vulnerable consumers and enterprises by utilizing revenues from emission allowances.
According to Cyprus News Agency, the Greek Social Climate Plan, which will be implemented from 2026 to 2032, is set to contribute significantly to emissions reduction, targeting a decrease of 811,000 tons of CO2 equivalent annually by 2032. The plan will mobilize a total of £4.77 billion, with £3.57 billion sourced from the EU and £1.2 billion from national funds.
The European Commission has determined that Greece's plan effectively addresses the social impacts of expanding greenhouse gas emissions trading to buildings and road transport under the new Emissions Trading System (ETS2). The plan aims to support 460,000 vulnerable households by reducing dependence on fossil fuels through initiatives such as 62,000 renovations and the installation of 200,000 heat pumps and solar water heating systems. Additionally, it will enhance the country's social housing with 2,800 new energy-efficient units and allocate £226 million towards renovating public student residences, benefiting 5,930 vulnerable students.
The initiative also includes temporary heating allowances supporting up to 800,000 vulnerable households annually. In terms of transport, 300,000 vulnerable users will benefit from the addition of more than 200 new electric buses, 22 Athens metro trains, and new on-demand transport services in remote areas. A social leasing scheme will provide 15,000 vulnerable households with affordable access to electric vehicles.
Furthermore, the plan emphasizes accessibility and inclusivity by investing in over 12,000 mobility devices and enhancing transport services for students with disabilities. It also includes upgrades to 33 railway stations and 85 metro stations to improve accessibility.
The plan allocates £820 million to support 28,000 vulnerable micro-enterprises in transitioning to cleaner buildings and mobility solutions, aiming to reduce energy and transport costs through targeted energy efficiency upgrades and subsidies. Greece will be eligible to request its first payment from the Commission once implementation milestones are achieved.
The Social Climate Fund is intended to support energy efficiency measures, building renovations, clean heating, cooling, and renewable energy integration, alongside zero-emission mobility and transport. Running from 2026 to 2032, the Fund is expected to mobilize at least £86.7 billion EU-wide, combining revenues from the new ETS2 with Member States' contributions.
The European Commission is collaborating with all Member States on their Social Climate Plans, urging their swift submission. To date, ten Member States have formally submitted their plans, with Sweden's plan being the first adopted, followed by Lithuania, Latvia, Malta, and now Greece. The Commission has provided guidance to assist in implementing the Social Climate Fund and finalizing plans.