Greece needs to spend €165 bln by 2030 to tackle climate change, state plan indicates

Greece needs to spend €165 bln by 2030 to tackle climate change, state plan indicates

Transitioning to a climate-neutral economy will require a combination of private and public investment and household spending equal to €164.9 billion by 2030, according to the revised National Energy and Climate Plan.

Households alone will have to spend €9.2 billion annually in 2024-25 and €11.6 billion annually in 2026-30 ον home energy upgrades, more efficient household appliances and to buy electric vehicles.

The plan estimates that low-income households must spend €4 billion annually in 2025-2030. Its authors note that a combination of subsidies and easier access to financing will be essential if this figure is to be achieved and if those households are to avoid what they term “energy poverty.”

The plan sets as a goal of reducing greenhouse gases to levels 55% lower than in 1990 by 2030 and eliminating them altogether by 2050. These are European Union-wide goals. Also, total energy consumption must remain steady at the equivalent of 15.4 million metric tons of oil, that is, slightly lower than 2021 levels, until 2030, which means raising energy efficiency 5-7% higher than in 2020.

But the increased use of electric cars, the connection of the islands to the power grid and the use of heat pumps are expected to boost demand to levels higher than the historical trends. Also, the production of hydrogen could even lead to a doubling of energy demand. As a result, significant energy savings must be achieved, mostly by buildings: the plan states that up to 19% of all buildings must be energy upgraded by 2030, which means nearly doubling the current pace of such upgrades. Households will take up about 52% of the extra spending on energy upgrades.

Limiting fossil fuels will also have a negative impact on tax revenues, which must be replaced by other taxes.

The national plan also foresees a 29% share of renewables in transport, to which advanced biofuels should be added.

The revised plan also has a greater role for renewable energy sources in total energy consumption, including power generation. In the latter, the goal is for renewables to account for 79% of electricity production in 2030, up from 61% in the previous version of the plan.

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