GReco Islands: €1.5 Million EU Funding for 39 Small Greek Islands

A total of €1.5 million in funding from the EU’s Cohesion Policy Programmes (ESPA 2021–2027) is being allocated to 39 small islands in the Aegean and Ionian Seas under the GReco Islands initiative. The funding will support the creation of strategic Local Action Plans, aimed at fostering sustainable development, green innovation, energy transition, and the social and economic resilience of small island communities.

The action, officially approved by Deputy Minister of National Economy and Finance, Nikos Papathanasis, targets islands with populations ranging from 100 to 3,500 residents, in the North Aegean, South Aegean, and Ionian Islands regions.

A New Model for the Islands of the Future The initiative is implemented by MOD S.A. (Unit for the Organization and Management of Development Programs)in collaboration with 33 local municipalities representing the 39 islands. Each Local Action Plan will reflect the specific needs, vision, and potential of each island, focusing on five main pillars:

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 Sectoral Breakdown & Strategic Impact

• 1. Sustainable Resource Management Focus: Water management, waste reduction, coastal protection

Estimated budget allocation: ~25%

Expected outcome: Improve natural resource efficiency by up to 30% within 5 years.

• 2. Energy Transition & Autonomy Focus: Renewable energy integration, microgrids, energy storage

Estimated budget allocation: ~30%

Expected outcome: Increase energy self-sufficiency by 40–50% on participating islands.

• 3. Digital Transformation Focus: Smart island infrastructure, e-governance, connectivity upgrades

Estimated budget allocation: ~15%

Expected outcome: Achieve 100% high-speed internet coverage in public infrastructure.

• 4. Human Capital & Youth Retention Focus: Education, remote work opportunities, local entrepreneurship

Estimated budget allocation: ~20%

Expected outcome: Reduce youth outmigration by 10–15%, while increasing local employment by 10%.

• 5. Green Entrepreneurship & Innovation Focus: Eco-tourism, circular economy models, local product value chains

Estimated budget allocation: ~10%

Expected outcome: Boost local business activity by 15–20% in the next 3–4 years.

Multiplier Effect & Complementary Funding The €1.5 million funding corresponds to just 0.02% of the total ESPA 2021–2027 program, which exceeds €30 billion. However, it acts as a catalyst, unlocking further financing from:

Environment & Climate Change Program

Just Development Transition Program

Regional ESPA Programs of the three island regions

Combined, these programs are expected to increase available funding by more than 50%, strengthening the implementation capacity of each island’s plan.

Statements from Officials

Nikos Papathanasis emphasized that this initiative is a cornerstone of the government’s sustainable development strategy, focusing especially on low-population areas facing chronic development challenges.

“This is not just about infrastructure; it’s about empowering communities and giving young people a reason to stay.”

Vasiliki Pantelopoulou, Secretary General for ESPA, described GReco Islands as:

“A new paradigm for the islands of tomorrow—combining energy autonomy with environmental sustainability to ensure balanced local development.”

• Summary: Key Figures at a Glance
• Indicator Value
• Total Funding €1.5 million
• Share of Total ESPA 2021–2027 ~0.02%
• Number of Islands 39
• Population Range 100 – 3,500 residents
• Participating Regions North Aegean, South Aegean, Ionian Islands
• Expected Youth Retention Impact +10% to +15%
• Projected Local Employment Increase +10%
• Estimated Energy Autonomy Gain +40% to +50%

The GReco Islands initiative represents a bold and forward-thinking effort to redefine the future of Greece’s small island communities. With a strategic blend of local planning, EU funding, and targeted innovation, it seeks not only to modernize remote territories, but also to preserve their character, enhance their resilience, and create opportunities for generations to come.

Source: pagenews.gr