Transitioning to a green economy in Greece
A changing climate is threatening livelihoods and economic activity in Greece and
the world. Transitioning to a green economy – mitigating the causes of climate change
and adapting to its effects, while sustaining activity and improving well-being –
is among the greatest policy challenges of the coming decades. In Greece, legacies
of high emission intensity, limited fiscal space and scarce private financing amplify
the challenge. Greening Greece’s energy system is at the core of this transition.
This entails swiftly developing its large potential for renewable energies and adapting
energy consuming sectors. A well-chosen mix of policies – including carbon pricing,
public infrastructure investments, and gradually tightening regulations on minimum
energy efficiency standards, while providing financial support and protecting vulnerable
households – would minimise the cost of this transition. Developing insurance coverage
can better protect households and firms from damages resulting from a warming climate,
while limiting fiscal exposure. Engaging all stakeholders and supporting those affected
by the transition will help build the consensus for implementing these policies into
the long-term.
Published on May 12, 2023
In series:OECD Economics Department Working Papersview more titles