EU approves Social Climate Fund for Greece

The European Commission approved Greece’s national plan for the Social Climate Fund, as announced on Thursday 27 August 2026, calling it «the fifth and largest national plan approved to date» under the Fund, according to the Commission’s announcement as reported by newsbomb.gr. The plan covers the period 2026-2032 and will mobilise a total of 4.77 billion euros, of which 3.57 billion euros (75%) will come from the European Union and 1.2 billion euros (25%) from national sources, the Commission said. The Greek government, meanwhile, spoke of immediate activation of 5.3 billion euros, as reported by the press offices of the Vice-Presidency of the Government and the Ministry of National Economy and Finance in a joint announcement relayed by ot.gr and capital.gr.

The difference between the two amounts is explained in the same government announcement: the 5.3 billion euros correspond to the 4.8 billion euros approved by the Commission, plus VAT. The Social Climate Fund is financed by revenues from the new emissions trading system for buildings, road transport and additional sectors (ETS2) and, according to the Commission, is expected to mobilise at least 86.7 billion euros at European Union level by 2032. The Greek plan, as reported by capital.gr, concerns approximately 1.5 million households and 70,000 very small businesses and includes a package of 25 interventions, including «Save» programmes for energy upgrading of 62,000 homes, installation of 280,000 heat pumps and solar water heaters, as well as construction of 2,800 new social housing units.

In practice, the plan provides for an increase of up to 100 euros per year in the heating allowance, subsidised «social leasing» of electric vehicles with a monthly rent of up to 150 euros for vulnerable households, as well as the supply of new electric buses and metro trains, according to capital.gr. In parallel, the Commission noted that 460,000 vulnerable households will be supported through renovations and installation of heating systems, whilst 28,000 very small businesses will receive support of 820 million euros to reduce energy and transport costs. Vice-President of the Government Kostis Hatzidakis said, as reported by capital.gr, that the approval of the Greek plan is «really good news».

The first actions, such as the construction of social housing in former military camps in Athens, Thessaloniki and Patras, and energy upgrading of very small businesses, are being rolled out within 2026, whilst measures such as energy upgrading of homes with a budget of 1.7 billion euros, free issuance of energy performance certificates and modernisation of student accommodation are scheduled for 2027, according to capital.gr. Greece will be able to request the first payment from the Commission once implementation of the plan begins and the envisaged milestones are achieved, the Commission said. More on economy and the environment in the national edition.