This initiative is just one of the core elements of the strategic plan to leverage over €8 billion in new European funding, to be deployed through three dedicated funds: the Social Climate Fund, the Modernisation Fund, and the Islands Decarbonisation Fund. Approved by the Cabinet, the plan will be implemented by 2032 and is equivalent in scale to half of the Recovery Fund. It aims to achieve substantial societal and economic transformation via green transition and social cohesion.
Energy support for 1.5 million households
The Social Climate Fund will allocate a total of €4.7 billion (including national contributions) to assist approximately 1.5 million vulnerable households and 18,000 small businesses unable to finance energy upgrades to their properties. Beyond provider-led interventions, subsidies will cover heat pump installations, solar water heaters, and heating allowances for households still using fossil fuels. A registry of beneficiaries will be established to enhance targeting and oversight. The programme’s reach is expected to expand from 300,000 to up to 1 million households by incorporating new social and geographic eligibility—including island, remote, single-parent, disabled, and large families.
Support for businesses and industry
Through the Modernisation Fund, €1.6 billion will facilitate the private sector’s energy transition. Specifically, €200 million is earmarked for heavy industries (aluminium, metals, chemicals, shipyards), and €575 million will support micro-enterprises in upgrading equipment, installing photovoltaics, and transitioning vehicle fleets to electric. Chambers of commerce will serve as one-stop information and support centers.
Investments in islands and transportation
The Islands Decarbonisation Fund will mobilize €4.4 billion for investments such as electrical interconnections for the Dodecanese, Northern Aegean, and Cyclades; floating wind farms; and photovoltaic systems with storage for municipalities, farmers, and businesses. Transportation measures include the acquisition of 100 electric buses and 50 hydrogen buses, plus incentives for electric vehicles serving disabled individuals, logistics companies, and specialized taxis.
Social housing and asset utilisation
EU resources will be used to construct or refurbish 1,000 social housing units on public land, alongside subsidies for private owners renovating vacant properties in exchange for long-term rental to vulnerable households.
Summary of Funded Actions
1. Social Climate Fund – €4.7 billion
- Energy upgrades & heat pump installations
- Social housing and student dormitory renovations
- Upgrades to mass transit (Athens metro, electric buses)
- Direct income support (heating & rent subsidies)
2. Modernisation Fund – €1.6 billion
- Modernisation of maritime transport (ferries, tourist vessels)
- Energy network upgrades to enable new renewables
- Industrial electrification and competitiveness
3. Islands Decarbonisation Fund – €4.4 billion
- Grid interconnections across the Aegean islands
- Renewable energy systems (PV, offshore wind, storage)
- Infrastructure for transport electrification and cold ironing
- Hybrid RE stations to phase out diesel generators
Implementation by Ministry
The action plan spans multiple ministries, including:
Ministry of Environment & Energy
- Social Climate Fund: upgrades for households (heat pumps, solar), beneficiary registry, heating allowances
- Modernisation Fund: alternative fuels, energy upgrades in sports and special education facilities, smart grids
- Islands Fund: extensive island grid interconnections, RE systems, energy storage, offshore wind infrastructure
Ministry of Infrastructure & Transport
- Social Climate Fund: new metro trains (lines 2 & 3; refurbishment of line 1), 210 electric buses (Athens, Thessaloniki), accessible logistic fleets, cycleways, pedestrian infrastructure, improved station accessibility, EV leasing and charging
Ministry of Education, Religion & Sports
- Energy-efficient student dorms (Vulnerable youth)
- Transport solutions for pupils with disabilities attending special schools
Ministry of Development
- Business energy upgrades, e-Vehicles & charging, chamber-led support
- Promotion of industrial energy savings and electrification
Ministry of Social Cohesion & Family
- Renovation/rental of private homes for vulnerable households and students
- Pilot projects for social housing on pressured areas
- Support for mobility aids (e.g., electric wheelchairs)
- Rent support for public servants in remote areas, and vulnerable households
- Community centers as one-stop-shops for energy poverty programs
Ministry of Maritime and Island Policy
- Maritime fleet modernisation (Greek shipyards)
- Electricity upgrades for vessels and coastal facilities
- Energy efficiency upgrades across ministry buildings
