On Thursday 8 June, the European Union’s Modernisation Fund released €2.4 billion to finance 31 projects to modernise energy systems, reduce greenhouse gas emissions and improve energy efficiency in seven beneficiary countries.
Sustained investment will enable these countries to reduce their dependence on Russian fossil fuels, meet their 2030 climate and energy targets and contribute to the EU’s goal of climate neutrality by 2050.
This additional funding comes from revenue derived from the European Union Emissions Trading System. The countries that have benefited are Romania (€1.1 billion), the Czech Republic (€1 billion), Bulgaria (€197 million), Poland (€47 million), Croatia (€88 million), Latvia (€5 million) and Lithuania (€1 million). These payments bring the total funds allocated by the Modernisation Fund since January 2021 to around €7.5 billion for the benefit of 10 eligible Member States.
The projects supported concern the production of renewable electricity, the modernisation of energy networks and the improvement of energy efficiency.
These investments will help accelerate the transition to a green economy in Europe, as set out in the ‘Green Deal’, and help achieve the EU’s climate objectives set out in the ‘Fit for 55’ package. The European Union’s Modernisation Fund is complementary to other European instruments, such as cohesion policy and the Just Transition Fund. The Fund operates under the responsibility of the beneficiary countries in close collaboration with the European Commission and the European Investment Bank (EIB).
Beneficiary Member States have until 15 August 2023 to submit priority investment proposals and until 12 September 2023 for non-priority proposals to qualify for additional financial support from the European Union’s Modernisation Fund. (Original version in French by Nithya Paquiry)