Athens to spend €5 bln to phase out coal

Greece will spend 5 billion euros to offset the impact of ditching coal in power generation by 2028 and cutting carbon emissions in line with European Union climate targets by 2050, a government official said on Wednesday. Energy Minister Kostis Hatzidakis told reporters the total will include state money, funds from the EU and loans from the European Investment Bank. The funds will be spent on infrastructure projects, subsidies to new businesses and training to help Western Macedonia and Megalopoli in the southern Peloponnese to switch to green energy, agriculture and tourism. Those regions are the main suppliers of the cheap and abundant lignite resources Greece has relied on for power generation for more than half a century. Greece’s conservative government, which took over last year, has pledged to switch off 80% of state utility Public Power Corporation’s coal capacity by 2023 to reduce its carbon footprint. Hatzidakis also said that some 16 private investments in renewables and other activities are in the pipeline and are expected to help create more than 8,000 jobs in Western Macedonia and Megalopoli. “The number of jobs that will be created in Western Macedonia and Megalopoli will be more than those that will be lost,” Hatzidakis said. Greece will also consider tax incentives to new businesses in the affected areas to support local communities, he said. (Reuters)