Greek Island Decarbonization Fund injected with €1.6 billion

Greece, in partnership with the European Commission and the European Investment Bank (EIB), has established the Islands Decarbonization Fund, a €1.6 billion initiative aimed at accelerating the green transition of Greek islands reports PV magazine.

The fund, managed by Greece’s Asset Development Fund (ADF), will finance a range of decarbonization projects, including renewable energy installations, energy storage solutions, grid infrastructure upgrades, and electric vehicle charging stations.

The funding for the Islands Decarbonization Fund will be sourced from the European Union’s Emissions Trading Scheme (EU ETS). By auctioning carbon emission allowances, the EU ETS generates revenue that is then allocated to member states to support climate-friendly initiatives.

Greece’s islands, renowned for their natural beauty, are increasingly vulnerable to the impacts of climate change. The Islands Decarbonization Fund represents a significant step towards mitigating these risks and securing a sustainable future for these iconic destinations.

The fund is expected to complement the Gr-Eco Islands Initiative, a government program focused on promoting renewable energy and energy efficiency on smaller, off-grid islands.

One of the flagship projects to be supported by the fund is the interconnection of the Dodecanese islands with the Greek mainland. This ambitious undertaking involves the construction of a 380-kilometer high-voltage direct current (HVDC) cable, which will enable the islands to transition away from fossil fuel-based power generation.

By investing in clean energy and sustainable infrastructure, Greece aims to position its islands as global leaders in sustainable tourism and climate action.