Project Overview
The project aims to develop a strategic plan and financing mechanism for the gradual renewal of the Greek coastal shipping fleet, with the objective of reducing CO2 emissions, in line with the green transformation of the economy.
The passenger shipping sector is of vital importance to Greece, as it ensures the connectivity of 116 inhabited islands, home to approximately 1.4 million people (14.6% of the country’s total population), with the mainland.
At the same time, the sector plays a critical role in:
- The provision of humanitarian aid.
- Civil protection.
- Strategic defense.
- Stimulating economic growth, through tourism and employment in island regions.
However, it is facing increasing pressure due to multiple emerging challenges — such as the aging fleet and the need for alignment with EU transport policies, strategic priorities, and climate neutrality targets, in line with the European Green Deal.
Implementation Phases
The implementation of the project is structured into the following phases:
- Assessment of available technological and technical solutions that can be applied individually or in combination for the renewal and energy upgrade of the coastal fleet. This evaluation will be based on technical criteria such as the maturity and reliability of available technologies, safety standards, the availability of energy sources (e.g. electricity and alternative fuels), and economic viability. It will also include an estimate of the investment needs, the scale and timeframe of the fleet renewal, as well as the necessary supporting infrastructure (high-level analysis) in Greek ports.
- Cost-benefit analysis of the economic, environmental, and social impacts resulting from the fleet’s renewal and energy efficiency improvements, as well as identification of the potential funding gap for the project’s implementation.
- Design of a financial tool or mechanism to bridge the identified funding gap.
The project is expected to have a significant positive impact on the Greek economy and population, as it aims to further enhance tourism activity — which is directly linked to employment and the development of the islands, whose economies are heavily dependent on tourism. In addition, the project is expected to strengthen social cohesion by ensuring and maintaining the connectivity of the islands with the rest of the country.
The total project budget amounts to €994,500 (excluding VAT) and will be fully financed by the Recovery and Resilience Facility (RRF).