EIB Advises Greek Regions on Green Transition and Lignite Phase-Out with €2.75 Million Fund

EIB Advises Greek Regions on Green Transition and Lignite Phase-Out with €2.75 Million Fund

(IN BRIEF) The European Investment Bank (EIB) will provide advisory support to five Greek regions to facilitate their transition from lignite-based energy production to sustainable, renewable energy sources. Through a €2.75 million technical assistance fund, the EIB aims to promote economic revitalization, foster renewable energy projects, and create job opportunities. This initiative is part of the EU’s broader efforts to ensure a just and inclusive green transition for regions impacted by the shift away from fossil fuels.

(PRESS RELEASE) LUXEMBOURG, 25-Jan-2025 — /EuropaWire/ — The European Investment Bank (EIB) is set to provide expert guidance to five Greek regions as part of a broader effort to support the country’s green transition. With a focus on mitigating the social and economic challenges posed by the gradual phase-out of lignite, the EIB’s advisory services will help these regions transition to renewable energy sources and improve living standards through investments in reskilling, urban development, and sustainable energy projects.

The regions receiving support include Western Macedonia, Megalopolis in the Peloponnese, Crete, and the North and South Aegean Islands. These areas, all impacted by the shift away from lignite-based energy production, will benefit from a €2.75 million initial technical assistance fund provided through the InvestEU Advisory Hub. The planned phase-out of lignite by 2026, which currently provides around a third of Greece’s electricity, is central to the country’s commitment to reducing its carbon footprint and contributing to the European Green Deal.

Yannis Tsakiris, Vice-President of the EIB, emphasized the bank’s ongoing dedication to supporting Greece in addressing the challenges of the green transition, ensuring no region is left behind. “Through our collaboration, we are equipping the five regions with the necessary technical expertise to develop long-term investment strategies that promote social and economic cohesion, foster renewable energy projects, and create sustainable job opportunities,” Tsakiris said.

The EIB’s advisory services aim to support the development of investment programs that will revitalize local economies, enhance institutional frameworks, and ensure compliance with EU standards. Additionally, the EIB will help the regions prepare grant applications for funding, with a submission deadline of September 11, 2025. This initiative is part of the broader Just Transition Mechanism (JTM), which aims to ensure that Europe’s transition to a climate-neutral economy by 2050 is just and inclusive, particularly for regions most affected by the shift away from fossil fuels.

The five regions covered by the Just Transition Plan in Greece include:

• Western Macedonia: Once Greece’s energy powerhouse, now focusing on transforming into a clean energy hub and attracting investment in new, high-potential sectors.
• Megalopolis, Peloponnese: Historically known for lignite mining and power generation, with plans to become an entrepreneurship hub centered around the bioeconomy and digital economy.
• Crete: Aiming to integrate renewable energy sources and transition to more sustainable business practices while reducing reliance on autonomous power plants.
• North Aegean Islands: Primarily dependent on agriculture and tourism, with an emphasis on sustainable practices and blue economy investments.
• South Aegean Islands: Focused on transforming its tourism-driven economy with green development initiatives and clean energy projects.

The EIB’s advisory efforts align with the EU’s broader climate goals under the Sustainable Europe Investment Plan (SEIP), which seeks to mobilize €1 trillion in sustainable investments by 2030. As Europe’s climate bank, the EIB plays a crucial role in financing and advising projects that advance the EU’s green and sustainable recovery.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. Through advisory support offered to project developers, the InvestEU Advisory Hub mproves the quality of investment projects and their alignment with the EU long term policy goals.

Background information

About the EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

Approximately half of the EIB’s financing within the EU is directed towards cohesion regions, where the per capita income is lower. This underscores the Bank’s commitment to foster inclusive growth and  converge the living standards.

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SOURCE: European Investment Bank