FINANCE

Resources to beat energy poverty in EU

Resources to beat energy poverty in EU

Greece expects to collect over 4 billion euros from the European Union’s Social Climate Fund, in order to fight energy poverty. The fund is being set up to address the effects of rising energy prices on carbon pricing.

The resources will be used to finance actions that will support the most vulnerable groups and will probably include subsidies for energy upgrades for buildings, renewable energy source installations and the supply of electric vehicles.

These estimates were made on Thursday by sources close to the European Commission, in view of the preparations for the implementation of the new legislation for the reduction of greenhouse gas emissions presented by the Commission in July 2021.

Electricity producers as well as a number of industries are obliged to have emission rights for the carbon dioxide they produce. This will extend to transport and buildings as of 2025, which means that gasoline, diesel, heating and natural gas will bear the cost of carbon dioxide emitted into the atmosphere during combustion. The fund will allocate €72.2 billion in 2025-32 to support social groups most affected by rising energy costs.