An ambitious project will make the Greek islands an example of decarbonisation, thanks to the 1.6 billion fund.
Greece, with its wonderful islands, is preparing to become not only one of the most beautiful places in the world thanks to its culture, food and ancient ruins, but also a model of sustainability and an example for achieving objectives Net Zero.
Renewable energy and storage systems (at least 50% of the budget), new electricity connections between islands and mainland, sustainable infrastructure such as charging stations for electric vehicles, cold-ironing, solutions to reduce environmental impact in ports and treatment plants of waters: all this will be possible thanks to Island Decarbonization Fundlaunched by the European Commission and the European Investment Bank (EIB).
1.6 billion euros were initially allocated to finance decarbonisation projects on the Greek islands, but this figure could reach 3.8 billion euros by 2032. The Fund will be financed by European Emissions Trading System (ETS), which operates according to a “cap-and-trade” mechanism, i.e. the system that sets the maximum emissions limit (cap) and distributes tradable permits among companies. Companies can buy or sell permits based on their emissions, providing an economic incentive to reduce pollution. Thanks to these mechanisms, Greece will be able to auction 25 million CO2 allowances, using the proceeds to support the decarbonisation of the islands.
Among the projects already underway, the new electricity connection between Corinth and the island of Kos will bring energy from the national grid to the Dodecanese islands for the first time. This project, together with others, will allow the gradual elimination of oil-fired plants, drastically reducing pollution.
Thanks to this plan, the Greek islands are on the path to becoming a global model of energy transition, while supporting the local economy and the fight against climate change.
