For the period 2021-2030, 643.232.888 emission allowances will be auctioned under the ‘Modernisation Fund’, the European Commission said on Monday 23 November.
On this basis, the institution estimates total revenues of the Fund at some €14 billion in 2021-2030, depending on the price of carbon.
The ‘Modernisation Fund’, provided for in the European Directive (2018/410) revising the EU Emissions Trading Scheme (ETS), is designed to financially support low-income Member States (those whose GDP per capita at market prices in 2013 was less than 60% of the EU average) in their efforts to modernise their energy systems and improve energy efficiency.
Ten countries are thus covered by the Fund: Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia.
The Fund is financed through the auctioning of 2% of the total allowances for 2021-2030 under the ETS and the transfer of additional allowances decided by five beneficiary Member States (Croatia, the Czech Republic, Lithuania, Romania and Slovakia).
This second point explains the wide variation in the amounts of quotas per Member State benefiting from the Fund: from 3.968.834 in the case of Latvia to 200.766.069 in the case of Romania.
See the total amount of allowances per Member State benefiting from the Fund for the period 2021-2030: https://bit.ly/3nSrfvL (Original version in French by Damien Genicot)