Brussels, 16 December 2021
In its first year of operation, the Modernisation Fund made available €898.43 million to eight beneficiary countries to help modernise their energy systems, reduce greenhouse gas emissions in energy, industry, transport and agriculture and support them in meeting their 2030 climate and energy targets.
Investments were confirmed in Czechia (€320 million), Estonia (€24.59 million), Croatia (€2.15 million), Hungary (€34.28 million), Lithuania (€28 million), Poland (€346.40 million), Romania (€22.99 million), and Slovakia (€120 million).
Executive Vice-President Frans Timmermans said:
“The Modernisation Fund is European solidarity in action. In its first year in operation, it has provided concrete support to beneficiary countries, enabling them to reduce their greenhouse gas emissions in key sectors. The Modernisation Fund thus helps to deliver the EU’s climate and energy targets and make the Green Deal a reality.”
The Modernisation Fund is funded by a percentage of the revenues from the auction of emission allowances from the EU’s Emissions Trading System, so that when the carbon price increases, revenues under the modernisation fund also grow. This fund aims to support ten EU countries with lower-income in their transition to climate neutrality by modernising their power sector and wider energy systems, boosting energy efficiency, and facilitating a just transition.
The beneficiary countries are Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia. The Commission proposed in July this year to more than double the Modernisation Fund to address the distributional and social effects of the accelerating transition away from fossil fuels. For more information please see here.