Carbon emission right auction funds totaling 150 million euros are estimated to be utilized to establish a new forest biomass market in Greece, according to a plan just presented by energy minister Thodoris Skylakakis.

This new market is planned to involve many players, beginning with forestry departments, to be subsidized for harvestable biomass with a proportion of revenues generated at auctions for carbon credits.

The plan, as a second step, will entail the establishment of an exchange for CO2 tons to be made available in a voluntary market for carbon credits. These carbon credits will correspond with additional volumes of CO2 emissions absorbed through actions such as efficient forest management and reforestation.

Companies and energy-intensive industries wanting to improve their environmental footprints will be the potential buyers of these carbon credits.

New forest management entities, to act as project developers, will result from partnerships between 293 forest cooperatives and companies certified for the amount of CO2 they can absorb.

Subsidy amounts to be paid to these forest management entities will be determined by the extent of forest management studies that have been carried out. Subsidy amounts offered will increase in accordance with the degree of difficulty in biomass collection and resulting level of contribution to fire prevention and forest protection, according to the plan.

The ministry plans to have its plan legislated by the end of the year so that the initiative may be launched in 2024, initially on a smaller budget.