EU invests an additional €2 billion of emissions trading revenues in clean energy infrastructure projects in Member States via the Modernisation Fund

Under the Modernisation Fund, €2.17 billion has been disbursed to help modernize the energy systems in nine Member States through 19 selected projects. These investments will help lower-income EU countries to meet their 2030 climate and energy targets reduce greenhouse gas emissions in energy, industry, and transport, and improve energy efficiency.

They are funded by revenues from the EU Emissions Trading System (EU ETS). The Modernisation Fund has disbursed a total of €9.68 billion of EU ETS revenues since its launch in 2021 to help Member States accelerate the green transition.

Following investments announced in June of €2.49 billion for 31 projects, the Modernisation Fund investments for 2023 to €4.66 billion for 50 projects. Support from the Modernisation Fund was granted this year to Bulgaria (€197 million), Croatia (€88 million), Czechia (€1.848 billion), Estonia (€66 million), Latvia (€5 million), Lithuania (€11 million), Poland (€221 million), Romania (€2.169 billion), and Slovakia (€60 million).

The 50 projects focus on electricity generation from renewables, modernization of energy networks, energy efficiency, and the replacement of coal generation with lower carbon-intensity fuels.

They include:

• the modernization of the electricity distribution grid in Bulgaria to accelerate the electrification of transport, storage deployment, and the decarbonization and decentralization of energy consumption and production;
• the production of electricity from photovoltaics by municipal waste service providers in Croatia;
• the achievement of a higher energy standard for public buildings and conversion of coal to gas in district heating in Czechia;
• improved energy efficiency in public buildings in Estonia;
• the introduction of electric vehicles and corresponding charging infrastructure in Latvia
• the development of renewable energy capacities in the Lithuanian large and medium-sized industrial sector;
• power grids for future electric car charging stations and high-efficiency co-generation in district heating and industry in Poland;
• renewable electricity production capacities, the modernization of the electricity distribution network, rolling stock modernization and gas infrastructure to facilitate replacing coal-powered generation in Romania;
• the modernization of energy networks, including energy storage, and energy efficiency improvements in Slovakia.