Greece’s Ministry of Environment and Energy (YPEM) has introduced significant changes to how the country allocates revenue from its annual auction of EU carbon emission allowances — funds generated under the EU Emissions Trading System (EU ETS). The new allocation framework, set for 2026, marks a major shift in financial priorities.
Major Shifts in Revenue Distribution
The Transition Fund — which supports coal-dependent regions in shifting away from fossil fuels — sees its share drop sharply, from 37% of total ETS revenue in 2025 to just 20.17% in 2026. Similarly, the Green Fund — dedicated to environmental protection, conservation, and restoration projects — will receive only 4.37%, down from 14.55% last year.
Boost for Renewable Energy and Industry
In contrast, several other sectors are set to benefit substantially. The Special Account for Renewable Energy Sources (ELAPE), managed by the Greek electricity market operator DAPEEP, will see its allocation rise dramatically — from 9% to 32.5%. This increase aims to close a projected €200 million funding gap and avoid raising the ETMEAR surcharge — a fee on electricity bills that supports renewable energy incentives. As a result, green energy producers can expect timely payments this year.
Industry also gains stronger support: the share earmarked for carbon leakage mitigation climbs from 20% to 26.5%. Meanwhile, the Organization for the Natural Environment and Climate Change (O.FY.PE.K.A.) receives a modest uptick — from 2.47% to 2.57%.
Targeted Support for Transport and Research
Funding for maritime emissions reduction measures under the Green Fund rises to 7.21%, up from 6.43%. The Hellenic Hydrocarbons and Energy Resources Management Company (EDEYEP) sees its allocation nearly double — from 0.88% to 2%. The share for promoting electric mobility remains unchanged at 2.7%, as does the 0.12% allocated to the Hellenic Geological and Mineral Exploration Enterprise (GAIA).