Decarbonization effort in 2020-2021 mainly funded by NSRF

The decarbonization effort’s transitional period, scheduled from 2020 to 2021, will be primarily funded through the current National Strategic Reference Framework (NSRF), to offer financial cover until the EU’s Just Transition Fund is activated, Greek officials have agreed.

A domestic coordinating committee put together for the decarbonization effort, a three-stage plan divided into short, mid and long-term phases, staged a virtual conference yesterday to discuss the strategy’s structure and financing for 2020 and 2021.

Major restructuring is planned for Greece’s west Macedonia and Megalopoli, both lignite-dependent regions, as part of the government’s decarbonization campaign, envisioning the withdrawal of all existing lignite-fired power stations by 2023.

Short-term projects, or mature projects, are scheduled for development this year and the next, according to the plan. These projects still need to be clearly identified by the coordinating committee in consultation with the relevant ministries, as soon as the economy is unlocked.

The coronavirus pandemic’s wider impact has brought about considerable funding plan changes. NSRF funds anticipated for decarbonization projects in 2020 will now be used to combat the effects of the crisis. Subsequently, the NSRF amount to be made available for Greece’s decarbonization plan remains unclear.

Prior to the pandemic’s outbreak, NSRF funds worth 600 million euros had been planned for decarbonization projects, double the amount Greece was expected to receive through the EU’s Just Transition Fund.