EU Approves Greece's €4.8 Billion Social Climate Plan
The European Commission has adopted Greece's Social Climate Plan, a €4.8 billion programme designed to support vulnerable households, transport users, and small businesses through the clean transition. The plan is the fifth and largest national plan approved so far under the Social Climate Fund, which uses revenue from emissions trading to advance the clean transition and support vulnerable consumers and enterprises.
The plan was developed by Greek authorities in cooperation with the Commission. Once implemented, the investments and reforms backed by Greece's Social Climate Plan (2026-2032) are expected to help cut emissions by 811,000 tonnes of CO2 equivalent annually by 2032.
Funding and Implementation
The plan will mobilise €4.77 billion by 2032, including €3.57 billion (75%) from the EU and €1.2 billion (25%) from national resources. Greece will be able to request its first payment from the Commission once implementation begins and the required milestones are met.
The Social Climate Fund is designed to support measures and investments in energy efficiency, building renovation, clean heating and cooling, the integration of renewable energy sources, and zero-emission transport and mobility. Running from 2026 to 2032, the Fund is expected to mobilise at least €86.7 billion across the EU, combining revenue from the new emissions trading system covering fuel combustion in buildings, road transport, and additional sectors (ETS2) with matching contributions from member states.
The Commission concluded that Greece's Social Climate Plan adequately addresses the social impacts of extending greenhouse gas emissions trading to buildings and road transport under the new ETS2.
Support for Households and Businesses
The plan will support 460,000 vulnerable households by reducing their reliance on fossil fuels through support for up to 62,000 renovations and the installation of 200,000 heat pumps and solar water heating systems. The plan will also expand the country's social housing stock with 2,800 new energy-efficient social units. A further €226 million will go towards the renovation of public student residences, improving access for 5,930 vulnerable students to higher education. A temporary heating allowance will also support up to 800,000 vulnerable households a year to meet their heating expenses after the introduction of ETS2.
Transport and Mobility Measures
300,000 vulnerable transport users will benefit from strengthened public transport through more than 200 new electric buses in urban areas with high rates of transport vulnerability, 22 additional Athens metro trains, new on-demand transport services in remote areas, as well as charging infrastructure. A social leasing scheme will also enable 15,000 car-dependent vulnerable households to access electric vehicles at an affordable cost. The plan invests in more than 12,000 mobility devices, a new school transport service, and upgrades to 33 railway stations and 85 metro stations.
Support for Micro-Enterprises
The plan also supports 28,000 vulnerable micro-enterprises with €820 million, helping them adapt to the clean transition.
Context: The Social Climate Fund
Ten member states have formally submitted their plans under the Social Climate Fund: Sweden, Lithuania, Latvia, Malta, the Netherlands, Greece, Croatia, Slovenia, Italy, and Luxembourg. Sweden's plan was the first adopted, followed by Lithuania, Latvia, Malta, and now Greece.