In a Nutshell

  • Carbon Dioxide Removal (CDR) will be used in Greece to compensate for residual greenhouse gas emissions in 2050. Greece’s main focus is on the land-use, land-use change and forestry sector.
  • Greece has a climate neutrality objective by 2050 enshrined in domestic law, as well as intermediate objectives of 55% emission reduction by 2030 and 80% by 2040 compared to 1990 levels.
  • The National Recovery and Resilience Plan provides most of the funding available for CDR and carbon management.
  • The development of a voluntary carbon market is being explored in Greece.

Role for carbon removal in national climate policy

Greece has acknowledged the key role that carbon dioxide removal plays in reaching climate neutrality by 2050 in its draft updated national energy and climate plan (NECP). The plan states that residual emissions will be compensated through “negative emissions and CO2 absorption” by the land-use, land-use change and forestry (LULUCF) sector. The plan quantifies what these residual emissions might be, aims for a 93% emissions reductions without the LULUCF sector, and 99% compared to 1990 when including the LULUCF sector. The plan also sets indicative emissions reductions targets every five years between 2025 and 2050.

 

Forests are the largest carbon sink in Greece, therefore, most measures related to CDR revolve around increasing forests’ carbon sink capabilities. The plan also mentions better agricultural practices to increase the LULUCF sector’s net removals. Greece plans to use the Common Agricultural Policy’s toolbox to incentivise the uptake of practices resulting in higher soil carbon uptakes. Climate adaptation measures are also at the forefront of LULUCF-related action, given the increasing risks of forest fires and desertification.

 

Carbon capture, utilisation and storage (CCUS) is one of the ten strategic priorities set out in the Greek NECP. This slew of technologies is set to play a key role in decarbonising the energy, industry and transport sectors. For example, Greece has the ambition to bring the energy sector’s net emissions close to zero by 2035. Besides substantial increases in renewable energy capacities, captured CO2 from biomass and pellet steam power plants will be used to produce gas and liquid fuels. For the transport sector, one third of fuel needs are forecasted to be met by advanced biofuels and 50% through synthetic fuels. The latter include renewable fuels of non-biological origin (RFNBO), for which direct air capture is mentioned as a source of CO2. Regarding industry, cement factories are the main focus, as the production of building materials represents a substantial share of Greece’s overall greenhouse gas (GHG) emissions.

Support for R&D and Innovation

There exist several potential funding sources for CDR in Greece and several active CCS projects.

 

At the national level, the draft NECP mentioned that the green transition working group is looking at how tax policy can be adjusted towards supporting green transition and related measures. The draft also mentioned the introduction of enhanced conditionality criteria for farmers to be eligible for CAP direct payments. There will be increased support for farmers through eco-schemes, including practices that use species resilient to climate change and practices that improve vegetation cover.

 

The most significant funding source is the National Recovery and Resilience Plan Greece 2.0. Among others, a total of EUR 600 million is dedicated to reforestation, biodiversity, flood mitigation, irrigation network upgrades and a waste management reform. Following the adoption of the RepowerEU package at the European level, measures aimed at further financing the promotion of CCS technologies for the industry have been proposed to be included in the Recovery and Resilience Plan.  Project Prinos CCS is undergoing a funding request for EUR 50 million, which is subject to the European Commission’s approval. The project has also been selected in the sixth list of Projects of Common Interest under the Trans-European Network – Energy (TEN-E) Regulation. The project will create a CO2 transport and storage infrastructure in depleted oil reservoirs under the seabed. The project is estimated to cost EUR 1 billion and will have a capacity of 1MtCO2 per year initially in Q4 2025, ramping up to a maximum of 3MtCO2 per year when fully operational in Q4 2027.

 

Two CCUS projects were selected as part of the third call for large-scale projects under the EU Innovation Fund. Project IFESTOS will retrofit an existing cement plant with carbon capture technologies, aiming to capture up to 1.9MtCO2 per year. The IRIS project will capture CO2 emitted by the production of blue hydrogen. While these projects are not considered CDR, they can have spillover effects by creating the necessary CO2 infrastructure.

 

The Greek Green Funds amount to EUR 400 million. Among others, these funds are available for companies in the Greek territory active in natural resources conservation, biomass/biogas for energy production or the production of energy from renewable resources.

 

The Hellenic Fund for Sustainable Development invests in companies from several sectors active in Greece. Among others, it invests in biomass for energy production and in agricultural companies implementing sustainable practices. Its focus is broad and could include CDR.

 

The Ministry of Development sets research priorities for all sectors in Greek economy. The priorities for the environment and cyclical economy sector and the sustainable energy sector include several streams linked to CCUS.

On the horizon

Most of the measures outlined in the draft updated NECP need to be materialised in actual policies and legal frameworks.

 

A full inventory and monitoring plan of the country’s forests and woodlands is due by 2025.

 

The draft NECP mentions the development of a voluntary carbon market in Greece. It aims to offer companies further opportunities to reach zero emissions and support local efforts to reduce and remove CO2

Contributors

Targets

  1. Net zero target: 2050
  2. Net Negative Target:

    No

  3. First interim target: 2030
  4. Type of interim target: Emissions reduction target
  5. GHGs covered: Carbon dioxide and other GHGs
  6. Separate target for emission reduction and removals: No
  7. Comprehensive CDR Target: no
  8. CDR Target for Conventional Removals: no
  9. CDR Target for Novel Removals: no
  10. Historical emissions: No
  11. Annual reporting mechanism: Annual reporting

CDR Plans

  1. Plans for carbon removal (CDR): Yes (nature-based removals e.g. Forestation, soil carbon enhancement)
  2. Planning to use external carbon credits: No
  3. Conditions on use of carbon credits:

Public consultations and upcoming policies

Think Tanks and NGOs

  • The Green Tank – Independent environmental think-tank focusing on biodiversity conservation, climate change mitigation and adaptation and the transition towards a sustainable economy.