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Lignite has long dominated Greece's electricity system, boosting economic growth and energy security, given the abundant domestic resources. In line with its national and international commitments to climate action and sustainable development, the country is currently facing the urgent need to transform its energy system, overcome its technological lock-ins, and transition to a low-carbon economy. Drawing from the need to secure a sustainable transition that considers the impacts of a lignite phase-out on local economies, this study builds upon the Multi-Level Perspective framework and further focuses on the phase-out of the dominant fossil fuel, rather than solely exploring the phase-in of new technologies. By delving into the landscape that established lignite as the mainstream energy resource in Greece, as well as the factors sustaining its dominance despite niche technologies and innovations challenging the regime, we discuss how the envisaged decarbonization can be socially just and effective across multiple sustainability dimensions. [ABSTRACT FROM AUTHOR]

The article constitutes a preliminary attempt to address the effects of the current economic crisis on the Greek environment. The austerity policies and other conditions imposed by the Memoranda of Understanding with the troika of international lenders are undermining the progress made in the pre-crisis years in the framework of European Union (EU) environmental policy. The latter conflicts with the EU's new priorities in the context of the Greek bailout programme. Examples include the air pollution caused by fuel substitution following a vast increase in heating fuel tax, the escalating environmental conflict related to gold-mining investment, and the crumbling environmental management apparatus. Strictly monitored by the European Commission, European Central Bank and International Monetary Fund, Greece needs to carefully delineate the trade-offs inherent in the country's ‘new’ model of growth. Proper policies are needed to avoid natural resource depletion, environmental decay and further national wealth reduction in the years to come. [ABSTRACT FROM PUBLISHER]

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