Greece’s national plan for the European Union’s Social Climate Fund has been approved by the European Commission, unlocking €5.3 billion (4.8 billion euros +VAT) in investments to support vulnerable households and very small businesses.
The plan is among the first national plans approved under the Social Climate Fund and the largest so far in terms of the resources allocated. It will finance measures aimed at reducing energy and transportation costs while supporting the green transition.
The funding will support energy-efficiency upgrades to buildings, social housing and improvements to public and private transportation.
The Greek government said the package includes 25 interventions designed to reduce energy costs nd help households and very small businesses transition to cleaner technologies.
The Social Climate Fund will cover about 1.5 million households and 70,000 very small businesses. It is scheduled to begin in 2026 and run through 2032.
€5.3 billion for the green transition
The €5.3 billion total includes value-added tax and will be used for a wide range of investments.Among the planned measures are energy upgrades for 62,000 homes and 10,000 very small businesses, the installation of 280,000 heat pumps and solar water heaters, and the construction of about 2,800 new homes for vulnerable households.
The plan will also provide new electric buses and metro trains, introduce a social leasing program for electric vehicles, subsidize electric commercial vehicles for small businesses and fully subsidize certain individual mobility equipment for people with disabilities.
The government said the measures are intended to reduce energy costs while improving buildings, public transportation and environmental performance.
Deputy Prime Minister Kostis Hatzidakis described the approval as “really good news,” saying the Social Climate Fund would become an important pillar of the economy alongside the EU’s National Strategic Reference Framework, agricultural subsidies and the new Competitiveness Fund.
“The €5.3 billion projects we have designed and are launching serve multiple goals,” Hatzidakis said, citing financial support for families and small businesses, particularly vulnerable ones, as well as measures to address energy costs, improve the building stock, protect the environment and modernize public transportation.
Alternate Minister of National Economy and Finance Nikos Papathanasis called the approval a “national success,” attributing it to planning, preparation and negotiations with Greece’s EU partners.
He said the funding would address housing, energy and transportation costs while financing long-term green investments, energy upgrades and cleaner public transportation.
Projects starting in 2026
Several major initiatives are scheduled to begin this year.
Social housing
The Ministries of Social Cohesion and Family and National Defense are working to secure the necessary permits and approvals for facilities at three former military camps in Athens, Thessaloniki and Patras.
The eventual goal is to launch a public tender for the construction of about 2,350 apartments for vulnerable households. Another approximately 400 social housing units could be created by converting public buildings for residential use.
The measure has an expected budget of €490 million.
Energy upgrades for microbusinesses
A targeted program will help very small businesses reduce their energy costs through building upgrades, heat pumps and solar water heaters.
The program will provide higher subsidy rates for both building improvements and replacement of energy equipment, with an emphasis on businesses operating in sectors with high energy costs.
The Social Climate Fund will allocate €395 million for the program, which is expected to benefit about 12,000 very small businesses.
Social leasing for electric vehicles
The Infrastructure and Transport Ministry is preparing a program allowing vulnerable households to lease electric vehicles under favorable terms, with monthly payments capped at €150.
Eligible households will receive a subsidy of up to €500, increased by €1,500 for vulnerable families with a member who has a disability.
Participants will be able to lease an electric vehicle for four years from a specified list of vehicles. The program will also provide for a future option to acquire the vehicle after the lease period.
The measure has a budget of €170 million and aims to support 15,000 households.
New electric buses for Athens and Thessaloniki
A public international tender is being prepared for 211 new electric buses for the fleets of Athens’ OASA and Thessaloniki’s OASTH.
Of these, 101 buses will serve Athens and 110 Thessaloniki. They will replace older vehicles, with priority given to routes serving areas with greater transportation needs, lower incomes and limited access to private cars.
The government estimates that the new buses will reduce waiting times at stops by 15% and contribute to reducing the operating costs of urban public transportation by €35 million.
The Social Climate Fund will provide €129 million for the measure.
Electric taxis
The government will also subsidize the replacement of conventional taxis with electric vehicles.
Taxi owners will receive a subsidy of €20,000, with €68 million allocated through the Social Climate Fund.
The measure will initially support taxi owners in Athens and Thessaloniki as they replace vehicles reaching the end of their service life, before being expanded nationwide.
For taxis accessible to people with disabilities, the subsidy will rise to €29,000.
Projects scheduled for 2027
Additional measures are planned to begin in 2027, including:
-€1.7 billion for energy upgrades in homes: Vulnerable households will receive support for energy-efficiency improvements and replacement of heating systems and water heaters.
-13 one-stop shops: One in each Greek region will provide information, advice and guidance to vulnerable households and very small businesses on energy upgrades and reducing energy costs.
-Free energy performance certificates: About 200,000 vulnerable households will receive free certificates.
-Energy Support Registry: An electronic registry will record households that meet the Social Climate Fund’s eligibility criteria.
-Student housing upgrades: Fifteen buildings in Athens, Thessaloniki, Ioannina, Patras and Komotini will be modernized, providing improved living conditions for about 5,600 students and increasing student housing capacity by 36.5% compared with current levels.
-Higher heating allowance: About 780,000 recipients will receive an additional €100 per year from 2027 through 2032, aimed at offsetting part of the cost of heating oil, natural gas and liquefied petroleum gas.
-Mobility equipment for people with disabilities: A 100% subsidy will cover electric wheelchairs, mobility scooters and hand bikes for 13,200 people with disabilities, including older people with quadriplegia or paraplegia, whether insured or uninsured.
-Metro Line 1 upgrades: Ten older, now decommissioned trains will be upgraded.
-Metro station accessibility: All 24 stations on Athens Metro Line 1 will be upgraded to ensure full accessibility for people with disabilities.
-New Metro trains: Twelve new trains will be acquired for Athens Metro Lines 2 and 3 to increase service frequency.
-On-demand transportation: Flexible local transportation services will be developed in Attica, Thessaloniki and regional municipalities, primarily serving older people, people with disabilities, single-parent and large families, and unemployed people.
Transportation for students with disabilities: Services will be improved in Athens, Thessaloniki and mountainous and island areas to ensure safer access to schools.
-Railway accessibility: Accessibility infrastructure will be upgraded at 33 railway stations to facilitate use by people with disabilities.
Electric commercial vehicles: Very small businesses will receive support to lease or purchase electric commercial vehicles, along with chargers for private use.
-Public EV charging: 4,400 publicly accessible electric vehicle charging points will be installed in areas where the market has not developed sufficient infrastructure.
-ATHENS MOVE: Four new municipal transportation routes will be created in Athens to address gaps in local mobility and serve areas facing economic and transportation vulnerabilities.
The Social Climate Fund is designed to support energy efficiency, building renovation, clean heating and cooling, renewable energy integration, and zero-emission transportation and mobility. Greece’s newly approved plan will put those measures into operation through 2032.
Source: tovima.com
