The Modernisation Fund of the European Union has disbursed €2.4 billion (~$2.6 billion) to finance 31 projects in seven beneficiary member countries to support the modernization of energy systems, reduction of greenhouse gas emissions in energy, industry, and transport, and improvement of energy efficiency.

The disbursement of funds was made possible through revenues generated by the European Emissions Trading System.

The projects selected for funding showcase the diverse range of initiatives prioritized by the beneficiary countries.

Romania received €1.1 billion (~$1.2 billion) to bolster its renewable energy sector. The investment will finance the development of new renewable electricity production capacities, district heating systems, and replacing coal-powered energy with cleaner gas infrastructure.

Czechia’s ENERGov Program, which focuses on energy efficiency, secured €1 billion (~$1.1 billion). The program aims to improve energy efficiency and savings in new public buildings, playing a crucial role in reducing overall energy consumption and promoting sustainable practices within the public sector.

Bulgaria received €197 million (~$212 million) to modernize its electricity distribution grid. It will seek to expedite the adoption of electric transportation, promote energy storage deployment, and advance the decarbonization and decentralization of energy consumption and production.

Croatia secured €88 million (~$95 million) to deploy photovoltaic and energy storage capacities to specifically serve public water service providers, fostering the integration of renewable energy sources into the water sector and supporting sustainable practices.

Poland received €47 million (~$51 million) to support cogeneration for district heating, contributing to a more efficient and environmentally friendly heat supply system.

Latvia secured €5 million (~$5.4 million) to accelerate the adoption of electric mobility, reducing carbon emissions from transportation and promoting sustainable urban development.

Lithuania received €1 million (~$1.1 million) to renovate multi-apartment buildings, enhancing energy efficiency and reducing energy consumption in the residential sector.

With this recent disbursement, the Modernisation Fund has provided approximately €7.5 billion (~$8.1 billion) in support since January 2021, benefitting ten eligible member states. These investments primarily target renewable electricity generation, modernization of energy networks, and energy efficiency enhancements, which are pivotal in achieving sustainable development and combating climate change.

To further encourage the transition to cleaner energy systems, the Modernisation Fund has invited beneficiary member states to submit investment proposals. The deadlines for non-priority and priority proposals are August 15, 2023, and September 12, 2023, respectively.

By providing the largest disbursement to date, the Modernisation Fund supports Member States in reducing their dependence on Russian fossil fuels, meeting their climate and energy targets by 2030, and contributing to the EU’s goal of achieving climate neutrality by 2050.

According to a recent report by BloombergNEF, Europe must invest over $32 trillion in energy and related technologies to achieve a net-zero economy by 2050.

Earlier this month, the European Union formally informed the World Trade Organization that it had notified the setting up of the Carbon Border Adjustment Mechanism, which seeks to put a price on emissions while manufacturing products imported into the EU.