Documenting outcomes: HIIN releases its initial report detailing the effects in Greece
The Greek impact investing market is experiencing a significant surge, with over €10 billion mobilized in impact investments across the country as of 2024. This growth is driven by a mix of domestic, EU, and foreign capital, making a substantial impact on the blue economy, sustainability, and coastal communities.
The expanding impact investing ecosystem in Greece has seen domestic private investors and funds significantly increasing their direct impact investments. European Union and foreign capital form a large share of the total €10 billion invested. Public institutions like the European Bank for Reconstruction and Development (EBRD) play a pivotal role in attracting investment and supporting private sector growth in Greece, particularly via public-private partnerships focused on sustainable and social infrastructure projects.
Start-ups and scale-ups have become the main focus of investment, with growth equity highlighted as a key segment within impact investing, often linked to innovation and technology development addressing social and environmental challenges. This focus aligns with trends in Greece, where sustainable urban infrastructure, water and waste management, and green transition initiatives are prioritized.
Social infrastructure such as education and healthcare also receive significant investment attention. The EBRD continues its mandate until 2027 to support Greek projects via PPPs, boosting competitiveness, innovation, and sustainability. The Greek government has pursued reforms to facilitate capital markets and improve the investment climate, such as reducing taxes on dividends from listed securities and bonds, and lowering transaction costs on securities trading.
The Hellenic Impact Investing Network (HIIN) has published The Hellenic Impact Report 2024, the first attempt to map and study the Greek impact investing ecosystem. The report highlights the rapid expansion of the social enterprise ecosystem in Greece, with sustainable cities, waste management, and green energy being common areas of focus for impact start-ups.
However, there are still gaps in the Greek impact investing market. Private sector participation in impact investing is still limited, and there is a lack of dedicated Greek impact funds and accessible financial products. The dominant source of domestic capital into impact investing today comes from mixed funding models combining mainly private and institutional capital.
Direct, unlisted investments from the domestic market into impact in Greece almost doubled in two years, growing from €1 billion in 2022 to €1.8 billion in 2024. The lack of a reporting framework to measure impact outcomes is a gap identified in the report, and the HIIN plans to provide training on how to use such a framework to seven Greek impact fund managers.
The HIIN is also working on designing a dedicated legal and financial framework for impact investing, including a national impact law and a standardized reporting framework. Greek public institutions, such as the Hellenic Development Bank, the Hellenic Development Bank of Investments, and the Growthfund, are the backbone of impact investing in Greece, supplying capital and shaping incentives.
Despite Greece's long coastline and major maritime sector, there is a gap in blue economy entrepreneurship. Sustainable aquaculture, offshore wind, and regenerative tourism are industries being driven by EU-aligned policies and growing interest from international capital in the blue economy. However, only a relatively small number of enterprises in Greece have transitioned to investment-ready for-profit impact models.
The most pressing capital needs in Greece include working capital, seed and venture-stage equity, and structured finance of more than €1m to scale companies and projects. The majority (57%) of impact ventures in Greece are in the ideation, pre-seed, or seed stage.
In summary, the Greek impact investing market is rapidly growing with a healthy mix of domestic and international capital, early-to-growth stage investment focus, priority on sustainability and social infrastructure impact themes, and significant facilitation from public institutions like the EBRD and government reforms enhancing capital market efficiency. The market still has gaps but is positioned strongly for continued expansion.
- Venture capital and private equity investments are increasingly being directed towards start-ups and scale-ups in Greece, particularly those addressing social and environmental challenges.
- The energy transition, specifically renewables, is a priority area for impact investing in Greece, with sustainable urban infrastructure, water and waste management, and green initiatives receiving significant attention.
- The Greek government aims to improve the investment climate by reducing taxes on dividends from listed securities and bonds, and lowering transaction costs on securities trading, contributing to the growth of the impact investing market.
- The design of a dedicated legal and financial framework for impact investing, including a national impact law and a standardized reporting framework, is being developed by the Hellenic Impact Investing Network (HIIN) to encourage further growth in the sector.
