EU's Modernisation Fund invests close to EUR 900m in green transition

The European Union’s Modernisation Fund, a funding programme set to support ten lower-income member states as they work to achieve climate neutrality goals, said that it made available EUR 898.43 million (USD 1.02bn) to eight beneficiary countries in the first year of operations.

The Fund’s investments are extended to help the countries revamp their energy systems, add more solar PV and other renewables, improve energy efficiency and prepare grids for electric car charging stations, among other green efforts aimed at reducing greenhouse gas emissions in key polluting sectors.

During the first year, investments were confirmed in Czechia, Estonia, Croatia, Hungary, Lithuania, Poland, Romania and Slovakia, the Modernisation Fund said. A total of 26 proposals from these countries received support.

Bulgaria and Latvia are also among countries that can send proposals for investments from the Fund, but they do not appear as beneficiaries on the Fund’s first-year list.

“Member States have different starting points in reaching the European Union`s 2030 energy and climate targets. The Modernisation Fund helps ten countries by financing the modernisation of energy systems, improvement of energy efficiency and renewable energy use and facilitating a Just Transition,” commented European Investment Bank Vice-President Ambroise Fayolle.

There will be another disbursement cycle early next year.

The Modernisation Fund is financed by revenues from the auction of emission allowances from the EU’s Emissions Trading System.

(EUR 1.0 = USD 1.133)

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