INTIEAEuropean Union · Modernisation FundPolicyIn force

Modernisation Fund

The Modernisation Fund is a dedicated funding programme to support 10 lower-income EU Member States in their transition to climate neutrality by helping to modernise their energy systems and improve energy efficiency.    The beneficiary Member States are Bulgaria, Croatia,…

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Country / jurisdiction: European Union · Year: 2021 · Status: In force · Level: International · Type: Voluntary

The Modernisation Fund is a dedicated funding programme to support 10 lower-income EU Member States in their transition to climate neutrality by helping to modernise their energy systems and improve energy efficiency.

The beneficiary Member States are Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia.

The Modernisation Fund will support investments in: generation and use of energy from renewable sources, energy efficiency, energy storage, modernisation of energy networks, including district heating, pipelines and grids; Just transition in carbon-dependent regions, redeployment, reskilling and upskilling of workers, education, job-seeking initiatives and start-ups.

The Modernisation Fund is recognised in the European Green Deal Investment Plan as one of the key funding instruments contributing to the objectives of the European Green Deal.

The Fund will be based on revenues from the auctioning of 2% of the total allowances for 2021-30 under the EU ETS and additional allowances transferred to the Modernisation Fund by beneficiary Member States.

As of June 2022, the Fund is making EUR 2.4 billion available to help modernise energy systems, reduce GHG emissions in energy, industry and transport, and support the 2030 climate and energy targets of 7 beneficiary countries:

Romania will receive EUR 1 391.6 million

Czechia EUR 520 million

Poland EUR 244.2 million

Lithuania EUR 85 million

Hungary EUR 74.3 million

Slovakia EUR 49.5 million

Croatia EUR 40 million

More precisely, the Modernisation Fund is supporting 45 investment proposals in the areas of:

electricity generation from renewable sources

modernisation of energy networks

energy efficiency in the energy sector, in industry, in buildings, as well as in transport

the replacement of coal generation with lower carbon intensity fuel.

These investments conclude the third investment cycle of the Modernisation Fund.

Official source: https://ec.europa.eu/clima/policies/budget/modernisation-fund_en

Source

https://www.iea.org/policies/12803

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