The European Investment Bank announced it will finance investment programs for five Greek regions to address the economic and social consequences of Greece’s planned lignite phase-out, and support its shift towards climate-neutrality.
€2.75 Million Support Greece’s Green Transition
Under the InvestEU Advisory Hub, EIB will offer technical assistance of €2.75 million to western Macedonia’s and Megalopolis’s regions, Crete, and North and South Aegean Islands, which are relying on lignite for nearly one-third of electricity generated in Greece. Lignite phase-out is part of the strategy of Greece to achieve climate neutrality by 2050, in line with EU targets.
Greece will phase out lignite by 2026, the country’s most carbon-intensive fossil fuel. The reduction in carbon emissions will help the fight against climate change. EIB has earlier supported lignite phase-outs in Germany, Poland, and the Czech Republic as part of supporting their green transitions.
EIB’s contribution to economic and social cohesion
EIB Vice-President Yannis Tsakiris said, “The European Investment Bank remains focused in its commitment to support Greece in addressing the complex challenges of the green transition, ensuring no region is left behind.”
He added, “With the Advisory Hub, we are giving the five regions the technical capacities that will allow them to prepare long-term investment strategies that promote social and economic integration, develop renewable energies, and deliver sustainable jobs. This cooperation represents a key milestone toward the mitigation of the lignite phase-out’s socio-economic impact while at the same time providing for a climate-neutral future.”
Main Outputs of Advisory Services of EIB
Advisory services from the EIB will help create investment programs intended to revitalize and strengthen local economies in five regions. This includes the enhancement of institutional frameworks through training and the sharing of best practices from other EU Member States.
The EIB will provide efficient management of the project and adherence to EU standards to ensure that all initiatives are aligned with European regulations. The bank will assist regions in preparing grant applications for funding and has set the deadline for September 11, 2025.
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Just Transition Plan for Greece and Regional Targets
The agreement forms part of Greece’s “Just Transition Plan,” transforming carbon-dependent regions into clean energy and sustainable hubs. It supports the European Green Deal and Just Transition Mechanism, an effort to make the EU climate-neutral by 2050. JTM mobilizes €100 billion in investments that will help areas most impacted by the shift to a low-carbon economy.
The five regions receiving support are part of Greece’s “Just Transition Plan.” Western Macedonia, long the energy-producing hub of this country, intends to become an emerging clean-energy investment hub; Megalopolis, instead of being a coal mine, now focuses on entrepreneurial spirit, concentrating on bio-economy, agriculture, and digital innovations.
Crete will absorb the renewable energy to focus on sustainable development, whereas North Aegean Islands will invest on sustainable agriculture and tourism, coupled with blue economy. For its part, the South Aegean Islands will develop green tourism and accelerate clean energy business growth.
The EIB leads SEIP projects, driving sustainable initiatives to support the EU’s transition to a greener future. SEIP targets the mobilization of €1 trillion in sustainable investments by 2030. It also ensures the Just Transition Mechanism (JTM) delivers a fair and inclusive transition.