The financial tools that will lead the business community to the green energy transition are at the center of their interest and searches at the European and by extension the Greek level. But what are these tools available to businesses?

In May last year the European Commission presented REPowerEU, which aims to green the transition and accelerate the dependence on fossil fuels.

As stated by Vassilis Tsiamis, Associate Partner in the Department of Corporate Strategy and Transactions Consultants and Head of Access Services to European Funding Programs of EY Greece, the transformation of Europe’s energy system is now a priority for the EU, and the member states must contribute to the achievement of. Based on the European Green Deal’s goal of net zero emissions by 2050, and the “Fit for 55” interim package of measures to reduce them by 55% by 2030, the REPowerEU project set additional targets for energy savings and the green transition, through the effective combination of investment and reforms.

In this context, our country – and especially, Greek businesses – must adapt, modernize and take action for their green transformation. The European Commission intends to provide incentives in this direction, and more specifically, an additional 20 billion euros in grants, of which 12 billion euros will be disbursed from the Innovation Fund, and the rest through other direct financing tools of the EU, such as the Modernization Fund, for which Greece is now an eligible country for domestic companies to submit proposals. The benefits for Greek businesses, says Mr. Tsiamis, from these financial tools, can be multiplicative, as long as they are combined with resources from other programs at the national level (e.g. NSRF, Development Law, Strategic Investments, Recovery and Resilience Fund , etc.)

The role of the Innovation Fund – To which companies and which projects is it addressed

The Innovation Fund is one of the largest financial programs worldwide, unique in its kind, and aims to demonstrate and commercialize innovative technologies with low carbon dioxide emissions. It is now one of the key delivery tools of the REPowerEU project, disbursing grants to finance the market demonstration of pioneering technologies for energy-intensive industries, hydrogen, renewables, carbon capture and storage infrastructure and key building for energy storage.

As Mr. Tsiamis points out, speaking to APE/MPE and the journalist Alekos Lidorikis, businesses – both small and medium, as well as large – can benefit through the calls for small and large-scale projects published by the European Commission every year . Recently, in fact, the tender for large-scale projects “closed”, while a few days ago the tender for small-scale projects, with a budget of up to 7.5 million euros, was “opened”, with a closing date around the end of September. The moment is excellent for those companies wishing to invest in projects of innovative technological solutions, with the aim of reducing greenhouse gas emissions. EY Hellas, as mentioned by Mr. Tsiamis, is a pioneer, having developed extensive experience in this specific tool, cooperating with businesses throughout Greece and from a wide range of sectors of the economy, creating an important window of investment and development opportunity for the entire market.

EY – IOBE study on the contribution of European financial instruments to the development of the Greek economy

In the study, an initiative of EY and IOBE, particularly interesting conclusions emerged, both for the significant benefits for the companies that received direct financing – such as, for example, the increase in their turnover, but also for employment – and for the Greek economy more broadly.

The study, according to Mr. Tsiamis, showed that there is significant scope for strengthening the participation of Greek businesses in these programs and that is where we must focus. And I am referring to businesses in particular, as the participation of other Greek bodies, such as universities and research centers, is quite high. It is not, however, a matter of the maturity of Greek businesses, as we have valuable and competitive businesses in Greece, but a matter of insufficient information and the wrong perception that these opportunities are addressed to other organizations.

The circumstances of the more than ten-year economic crisis and the pandemic, of course, pushed Greek businesses to seek financing, but mainly through national financial tools. Through the proposals reflected in the said study, it is sought, first of all, to mobilize Greek businesses to seek European direct financing opportunities, and secondly, the participation of the State through information and training actions to raise awareness and mobilize domestic businesses.

Practical business steps

But what could be the practical steps of businesses in our country to make the best possible use of the community and national financial tools? Experience shows that it is of primary importance that a company is really interested in benefiting from European, as well as national funding programs. The funding, however, will not come by itself, but the business itself must:

– let him be informed

– develop skills for submitting competitive proposals

– and choose the right partners.

– It is also important to know that financing can – in most cases – be combined, in order for a company to benefit to the maximum from more than one financing scheme.

EY, he points out, has adapted its services in this direction and has adopted a holistic consulting approach, providing specialized advice and financing directions, both for national and European tools, adapted to the needs of each business, for investment projects characterized by eligible and have a high probability of success, thus significantly limiting the risk for the investor.