The European Commission has approved Greece's national Social Climate Plan, allocating 5.3 billion euros in funding for energy efficiency improvements, social housing development, and transport modernization across the country.
The decision represents the largest national funding allocation approved to date by the European Union's Social Climate Fund, and one of the largest in the European Union, according to state news agency APE-MPE. The plan provides 4.8 billion euros alongside value-added tax to assist roughly 1.5 million vulnerable households and 70,000 micro-enterprises between 2026 and 2032.
The European Commission, based in Brussels, functions as the executive arm of the European Union and oversees the administration of shared European funding programs. The Social Climate Fund was established by the bloc to help lower-income households and small businesses manage the financial costs associated with green energy transitions. In Greece, the new scheme will succeed the European Union's Recovery and Resilience Facility, serving as a key pillar of national economic policy alongside the National Strategic Reference Framework, agricultural subsidies, and the new Competitiveness Fund.
Greek Deputy Prime Minister Kostis Hatzidakis described the package as a major project program targeting the environment, housing, and transport, calling the approval encouraging news for the country. Alternate Minister of National Economy and Finance Nikos Papathanasis called the decision a national success achieved after months of successful negotiations with European partners. Papathanasis said the plan provides a clear answer to how the government of Prime Minister Kyriakos Mitsotakis will maintain economic growth combined with social cohesion following the conclusion of the Recovery Fund.
A joint statement from the Vice Presidency of the Government and the Ministry of National Economy and Finance noted that Greece submitted one of the first national plans approved by the Commission. The statement credited collaboration with the Ministry of Environment and Energy and Minister Stavros Papastavrou for designing measures that will lower energy costs and support green upgrades for families and small firms. Overall, the initiative comprises a package of 25 distinct interventions, including the installation of 280,000 heat pumps and solar water heaters in residential properties.
Projects scheduled for launch in 2026
Implementation of the plan begins in 2026 with immediate funding directed toward housing and energy relief. A total of 490 million euros is allocated for social housing projects managed jointly by the Ministry of Social Cohesion and Family and the Ministry of National Defence. Authorities are working to obtain licenses for three former military camps in Athens, the capital of Greece, as well as Thessaloniki in the north and Patras in the west. The government plans to issue a public tender to construct approximately 2,350 apartments for vulnerable households following legislative reforms, while another 400 social housing units will be created by converting disused public buildings.
The Ministry of Development will manage a 395 million euro program aimed at reducing energy costs for 12,000 micro-enterprises, focusing on commercial sectors with high utility expenses. Participating businesses will receive subsidies covering building insulation work as well as the replacement of heating units with heat pumps and solar water heaters, with higher subsidy rates designed to protect company liquidity.
Transport initiatives launching in 2026 include a 170 million euro social leasing program organized by the Ministry of Infrastructure and Transport. The scheme will allow 15,000 vulnerable households to lease electric vehicles for four years at monthly rates not exceeding 150 euros. Beneficiaries will receive maximum subsidies of 12,500 euros, with an additional 1,500 euros provided to families with a disabled member, alongside an option to purchase the vehicle after the lease ends. The ministry will also allocate 68 million euros to subsidize taxi owners replacing older vehicles with electric models. Drivers will receive 20,000 euros per vehicle, rising to 29,000 euros for wheelchair-accessible taxis, starting in Athens and Thessaloniki before expanding across Greece without complex administrative procedures.
Public transit expansion in 2026 includes 129 million euros for an international public tender to purchase 211 new electric buses. The Athens Urban Transport Organisation, known as OASA, will receive 101 buses to serve the capital region. The Thessaloniki Urban Transport Organisation, known as OASTH, will take delivery of 110 buses to serve Greece's second-largest city. Vehicles will prioritize routes in lower-income areas with limited access to private cars, such as Western Attica and Western Thessaloniki. The fleet addition is projected to cut bus stop waiting times by 15 percent and reduce annual public transit operating costs by 35 million euros.
Wider rollout scheduled for 2027
A broader set of measures will take effect in 2027, anchored by a 1.7 billion euro allocation for residential energy upgrades. This funding will support home insulation, heat pump installations, and solar water heater replacements for vulnerable households. To guide citizens, the government will establish 13 advice centers, known as One Stop Shops, with one location in each administrative region of Greece. The 2027 rollout also includes free Energy Performance Certificates for roughly 200,000 vulnerable households and the creation of an online Energy Support Registry where eligible families can register.
Direct financial assistance will expand in 2027 through the national heating allowance, which benefits approximately 780,000 recipients annually. From 2027 to 2032, beneficiaries will receive an additional 100 euros per year to offset price increases for heating oil, natural gas, and liquefied petroleum gas. Educational infrastructure will also receive funding to modernize 15 student dormitory buildings across Athens, Thessaloniki, Ioannina in the northwest, Patras, and Komotini in the northeast. The upgrades will increase overall student housing capacity by 36.5 percent, providing modern living spaces for 5,600 students.
Programs supporting people with disabilities feature heavily in the 2027 rollout. The government will provide 100 percent subsidies for 13,200 individuals, including older quadriplegic and paraplegic citizens, to purchase electric wheelchairs, mobility scooters, and hand bikes. A specialized Transport-on-Demand service will launch in Attica, Thessaloniki, and regional municipalities, offering flexible local transport for elderly residents, disabled individuals, single-parent families, large families, and unemployed citizens. Dedicated transport services will also be expanded to convey students with disabilities to school safely in Athens, Thessaloniki, and mountainous or island areas. Infrastructure improvements will extend to 33 train stations managed by OSE, the Hellenic Railways Organisation, to ensure unhindered access for disabled passengers.
Rail and municipal transport in Athens will undergo major capital work in 2027. All 24 stations on Line 1 of the Athens Metro will receive accessibility upgrades, while 10 decommissioned older-technology train sets on Line 1 will be refurbished. An additional 12 new train sets will be purchased for Metro Lines 2 and 3 to increase service frequency. Within the capital, a new municipal transit service named ATHENS MOVE will introduce four new local bus routes connecting Neos Kosmos, Petralona, Kerameikos, Kato Patisia, Sepolia, Prombona, Ano Patisia, Kypseli, and Attiki to serve transit-vulnerable areas. Finally, small businesses will receive subsidies to buy or lease commercial electric vehicles and install private chargers, supported by the deployment of 4,400 publicly accessible electric vehicle charging points in areas currently underserved by private infrastructure.
