The European Commission (EC) and the European Investment Bank have announced a disbursement of €3.66bn ($4bn) from the bloc’s Modernisation Fund to advance energy-related initiatives in nine EU member states.
The funding will support the modernisation of the EU’s energy systems, reduce greenhouse gas (GHG) emissions across multiple sectors and enhance overall energy efficiency.
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The financial boost, drawn from the revenues of the EU Emissions Trading System (EU ETS), represents the largest allocation from the Modernisation Fund thus far.
Since January 2021, total funding has reached €19.1bn ($22bn).
Beneficiary countries are Croatia with €170m, Czechia with €1.05bn, Greece with €113.6m, Hungary with €181.3m, Latvia with €40m, Lithuania with €37m, Poland with €1.33bn, Romania with €712.3m and Slovenia with €19.7m.
The 34 projects with backing from the fund focus on renewable electricity generation, the use and deployment of renewable energy sources, the modernisation of energy networks and energy efficiency.
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By GlobalDataAmong the initiatives are supporting the production and utilisation of heat from renewable energy sources and enhancing energy efficiency in heating and cooling systems in Croatia. In Czechia, investments are being made in electricity storage capacity from renewable sources, while Greece is replacing urban diesel buses with new electric buses.
Hungary is working on improving energy efficiency in public buildings, and Latvia is increasing its electricity grid capacity.
Further efforts include investing in large-scale energy storage capacities in Lithuania and developing a clean air programme in Poland to support energy efficiency improvements and heat source replacements in single-family houses.
Romania is focused on enhancing energy efficiency in EU ETS installations, and Slovenia is modernising and developing its electricity transmission and distribution network to facilitate the integration of renewables.
European Investment Bank vice-president Ambroise Fayolle stated: “Increasing Europe’s energy autonomy requires reducing our reliance on fossil fuels and ensuring access to the cleanest, most affordable energy for people and businesses. The Modernisation Fund is a model of European cooperation that facilitates investments in green energy and sustainable transport and supports eligible member states in achieving their decarbonisation objectives whilst boosting economic resilience and competitiveness.”
The upcoming deadlines for member states to submit investment proposals for the Modernisation Fund are set for 12 August 2025 for non-priority proposals, and 9 September 2025 for priority proposals.
