The Island Decarbonization Fund, which has been allocated 25 million CO2 emission rights expected to raise between 1.5 and 3 billion euros through auctions, is set for launch, energy minister Thodoros Skylakakis told an event on Rhodes yesterday.

He was speaking at the Rhodes Co-Lab Sustainable Destination, an event co-organized by the South Aegean Administrative Region and the TUI Group to promote the transformation of Rhodes into a sustainable and resilient tourist destination.

The proceeds to be raised by the CO2 emission rights, at auctions in 2024 and 2025, are planned to co-finance up to 60 percent of the Greek islands’ decarbonization effort.

The Island Decarbonization Fund will officially be launched with the signing of an agreement by the European Commission’s Directorate-General for Climate Action (DG CLIMA) and the European Investment Bank.

The energy ministry has already begun specifying initiatives that will receive support through the Island Decarbonization Fund. Renewable energy projects are expected to secure the biggest share of the fund, followed by electrical grid interconnections.

The remaining amount is expected to go towards financially supporting various other initiatives, including cold ironing (emission-reducing shore-to-ship power supply).

Deputy energy minister Alexandra Sdoukou told the Rhodes event that a 500 million-euro amount is already anticipated from the Island Decarbonization Fund for an electrical interconnection linking the Dodecanese islands with the mainland.

Sdoukou also made note of plans for the development, on Rhodes, of a RES facility with a storage unit promising a capacity of at least 50 MW. This project will increase the RES share of the island’s energy mix to at least 40 percent, she added.