One of Greece's smallest islands is to convert to a completely green transport system, after receiving backing from German car giant Volkswagen (VW). 

Astypalea, one of 12 islands in the Dodecanese archipelago of the Aegean Sea, has a population of just 1,300. Public transport is limited to two buses a day, which run on diesel and islanders generally use private cars to get about.  

Through the showcase experiment, VW will provide electric vehicles and scooters, charging points and ride-sharing services to its inhabitants. Commercial and public sector vehicles will also switch to electric under the terms of the six-year project. In total, around 1,500 combustion engine vehicles will be replaced with 1,000 electric alternatives, while 230 private and public charging points will be built at locations across the island.

The memorandum of understanding was signed on Wednesday at a virtual event attended by Volkswagen CEO Herbert Diess and Greece's deputy foreign minister Konstantinos Fragogiannis. Funding details have not been revealed but, joining the event virtually in Athens, Prime Minister Kyriakos Mitsotakis said: "I strongly believe in partnerships. Governments can't deliver on their own and the private sector isn't the answer to every question."

Greece has long relied on fossil fuel to power its transport and energy sector but is keen to diversify toward renewables in its goal of climate neutrality. The results of the trial on Astypalea, a popular tourist destination, are likely to be watched closely by the Greek government and others across the European Union.

Speaking from the company's headquarters in Wolfsburg, Diess announced: "Our long-term goal is climate-neutral mobility for everyone. And with the Astypalea project we will explore how to realize that vision already today."