Greece plans EUR 5.3 billion for Social Climate Fund programs for energy efficiency, electric cars

The Greek government presented an array of support programs as part of the European Union’s Social Climate Fund. It is expected to succeed the Recovery and Resiliency Facility (RRF) after its expiration later this year.

Overall, the new national plan has a budget of EUR 5.3 billion, with 25 items for supporting 1.5 million vulnerable households and 70,000 small businesses.

About half of the endeavor is for various aspects of energy use, with programs to support energy renovations as well different forms of electric mobility.

Specifically, the budget for 10,000 very small businesses (VSBs) stands at EUR 394 million. It is directed at upgrading buildings, as well as installing energy equipment that improves their energy efficiency and lowers operational costs.

Another program would cover the installation of heat pumps for 170,000 households, and a separate one is for 110,000 households to replace fossil fuel heating with solar energy. Government support may reach up to 80% of the total cost for a total budget of EUR 930 million to EUR 950 million.

The annual relief for heating consumers is also raised by EUR 100 per family. It will benefit 780,000 housholds during the period 2027-2032.

More electric cars, trucks and chargers

Apart from energy efficiency, the Greek plan includes electric mobility, with EUR 289 million earmarked.

14,000 VSBs will have the opportunity to buy electric cars or vans, while 1,000 transport or logistics businesses will be able to purchase electric trucks and buses. Support is set at 40% of the price in the first case and 30% in the second. Extra funding is provided for private chargers.

Another EUR 68 million will be provided for electric taxis, or EUR 20,000 per beneficiary. Initially this will be applied to Athens and Thessaloniki, but later on more cities are to be included.

Social leasing is also a part of the Social Climate Fund, aimed at households with increased transportation needs. Details are not yet available, but this measure is expected to have income criteria, such as a similar act enacted by France a few years ago.

Last but not least, 4,400 new public charging spots are envisioned, through EUR 135 million in funding.

“These measures are a decisive effort to support vulnerable households and fight energy poverty. Our country now has the experience of the RRF, which translates to better planning,” said Minister of Environment and Energy Stavros Papastavrou.