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Factsheet for measure GR-2023-2/3480 – measures in Greece

Green taxis

Πράσινα ταξΙ

Country Greece , applies nationwide
Time period Temporary, 09 January 2023 – 31 December 2024
Context Green Transition
Type Other initiatives or policies
Category Promoting the economic, labour market and social recovery into a green future
– Sustainable mobility
Author Penny Georgiadou (INE GSEE)
Measure added 23 February 2024 (updated 23 January 2025)

Background information

On 9 January 2023, the Ministry of Environment and Energy announced the launch of the 'Green TAXI' program. The purpose of the 'Green TAXI' initiative is to promote electrification and the penetration of electric vehicles into the fleet of TAXIs operating within Greek territory. This promotes the transition to zero-emission and low-emission mobility, which will be achieved through the gradual reduction of Greenhouse Gas (GHG) emissions attributable to transportation.

Furthermore, the obligation of withdrawal contributes to the modernization of TAXIs and their gradual electrification through the promotion of electrification and purely electric zero-emission vehicles.

The 'Green TAXI' initiative is funded by the Recovery and Resilience Fund and aims to replace approximately 2,000 old polluting taxis with new fully electric ones.

Content of measure

The 'Green Taxi Program' foresees the possibility of subsidies for taxi vehicle owners, for the purchase or leasing of purely electric taxi vehicles, as well as for the purchase and installation of a 'smart' electric vehicle charging point. Beneficiaries of the program are all taxi vehicle owners of EURO5 category and older, based on the vehicle registration. Each beneficiary is entitled to the purchase or leasing of a purely electric zero-emission CO2 vehicle (BEV), per license. Beneficiaries are required to withdraw and destroy the old taxi vehicle. The withdrawal subsidy amount is included in the final amount of the subsidy (eco bonus). The subsidy amounts to 40%, with the maximum amount reaching €17,500, and the mandatory withdrawal of the taxi vehicle being rewarded with €5,000. Additionally, special care is taken for People with Disabilities (PwD), families with 3 dependent children and above, and young people up to 29 years old, with a separate increase for each category. The purchase of a 'smart' electric vehicle charging point is subsidized with €500 and is optional. The submission of applications started on 9 January 2023 on the platform https://prasinataxi.gov.gr and continues until 31 December 2024.

Use of measure

The total budget of the program will be €40 million, and it is expected that approximately 2,000 taxis will be replaced. It should be noted that across the country in January 2023, there were approximately 28,500 taxi vehicles in circulation, out of which 2,400 are of Euro 6 anti-pollution technology, accounting for 8.5% According to press reports, participation in the program is low. Until January 2024, only one 'green' taxi has been subsidized, in the city of Ptolemaida, and 53 applications have been submitted. On October 16, 2024, the Ministry of Infrastructure and Transport, allocated an additional amount of €123,193 to 6 beneficiaries of the "Green Taxis" program. Since the launch of the program and with the completion of this 5th payment, a total of €1,013,123 has been disbursed as subsidies for 48 electric taxis.

Target groups

Workers Businesses Citizens
Does not apply to workers Solo-self-employed
Sector specific set of companies
One person or microenterprises
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
European Funds
Local funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

There is no any involvement of social partners.

Views and reactions

According to the Attica Taxi Drivers Union (SATΑ), the low response to the program by taxi owners is due, among other reasons:

  • to the high cost of purchasing a zero-emission electric vehicle (€45,000 and above), which professionals in the industry must pay for the purchase and then, upon presentation of the receipt, receive the financial aid;
  • the limited battery capacity, which is approximately 200 kilometers;
  • the high cost of purchasing a new battery in case of damage.

For these reasons, the union proposes, among other things, the postponement of the obligation for exclusively zero-emission taxis from 2026 to 2035, the exemption or reduction of VAT on the purchase of an electric vehicle for commercial use, a 30% discount on the price of kilowatt-hour for consumption by electric taxis, and the creation of infrastructure with accessible chargers at the airport and in major taxi ranks.

Sectors and occupations

This case is not occupation-specific.

Sources

  • 09 January 2023: Πρόσκληση υποβολής αιτήσεων στη δράση «Πράσινα Ταξ (greece20.gov.gr)
  • 29 January 2024: Γιατί μένει στα αζήτητα το πρόγραμμα επιδότησης για "πράσινα" ταξ (www.capital.gr)
  • 05 February 2024: Τροποποίηση της Απόφασης Ένταξης του Εργου «SUB.2. ΠΡΑΣΙΝΑ ΤΑΞΙ» (greece20.gov.gr)
  • 22 November 2024: Επιδοτήσεις για Πράσινα Ταξί: (www.enikonomia.gr)

Citation

Eurofound (2024), Green taxis, measure GR-2023-2/3480 (measures in Greece), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GR-2023-2_3480.html

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