Greece has secured more than €8 billion (US $9.4 billion) in new European funding through the Social Climate Fund, the Modernisation Fund, and the Islands Decarbonisation Fund. These resources, allocated for the 2026–2032 period, aim to finance development projects focused on energy efficiency, green transport, housing, and sustainable island infrastructure.
Social climate fund: Energy and equity
The largest share, €4.7 billion, will come from the Social Climate Fund. The funds will support building renovations, installation of heat pumps, and the refurbishment of student dormitories and social housing. Other priorities include modernizing public transport systems such as the Athens metro and expanding the fleet of electric buses. Vulnerable households will benefit from direct subsidies for heating and rent.
“We are presenting a new package equivalent to half of the Recovery Fund,” said Deputy Prime Minister Kostis Hatzidakis. “It’s designed to promote growth and improve daily life, addressing urban transport, social equity, environmental protection, and more.”
Modernisation fund: Supporting industry and infrastructure
With €1.6 billion from the Modernisation Fund, Greece plans to upgrade its coastal and tourist shipping fleets and boost the competitiveness of energy-intensive industries. Funds will also be used to improve energy grid capacity, allowing for more renewable energy sources (RES) to connect.
Decarbonising the islands
An additional €1.7 billion from the Islands Decarbonisation Fund will focus on clean energy infrastructure in regions like the Cyclades and the Dodecanese. Projects include inter-island electrical connections, solar installations for desalination plants, and new charging stations for vehicles and vessels.
“Our goal is cleaner, cheaper, and more accessible energy for all,” said Environment and Energy Minister Stavros Papastavrou. “This plan ensures no one is left behind.”
