The Greek government is seeking more than three billion euros from the EU’s new climate-change fund, roughly the cost of measures designed to reduce the cost of power bills, for its electricity subsidies program.
The distribution plan for the new climate-change fund, approved in European parliament last week, is expected to offer Greece 5.5 percent of its 57 billion-euro starting sum.
Distribution details are still being negotiated by the EU’s 27 member states. Environment ministers will meet in Luxembourg today.
The new EU fund is expected to gradually grow through contributions raised by an extension of the carbon tax system (ETS II), planned to also cover buildings and transportation. The rise in fuel prices is expected to contribute many billions of euros in extra revenues to the climate-change fund.
The plan to extend the carbon tax system (ETS II) into transportation has prompted a strong reaction from the sector, representatives fearing additional costs without incentives for a shift away from fossil-fuel usage.