The European Union’s (EU) Modernisation Fund disbursed €4.11 billion (~$4.36 billion) this year for 61 projects in eight countries to modernize energy systems, reduce greenhouse gas emissions and improve energy efficiency. These investments support the EU’s 2030 climate and energy targets and accelerate the green transition.

The Fund disbursed €119.8 million (~$127.16) to Croatia, €1.34 billion (~$1.42 billion) to the Czech Republic, €62.4 million (~$66.23 million) to Estonia, €74.3 million (~$78.87 million) to Hungary, €85 million (~$90.22 million) to Lithuania, and €643.2 million (~$682.72 million) to Poland.

Romania received €1.39 billion and Slovakia €399.5 million (~$424.05 million).

In June, €2.4 billion (~$2.55 billion) was disbursed against 45 investment proposals, and €1.71 billion (~$1.82 billion) recently for 16 additional investment proposals.

The Modernisation Fund, with revenues from the EU’s Emissions Trading System, aims to support the transition to climate neutrality in ten lower-income EU countries: Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia.

The 61 investment proposals selected this year focus on electricity generation from renewables, modernizing energy networks, improving energy efficiency in energy, industry, buildings, and transport, and replacing coal generation with low carbon-intensity fuel.

The deadline for beneficiary member states to submit investment proposals for the next disbursement cycle is January 19, 2023, for non-priority proposals, and February 16, 2023, for priority proposals.

The Modernisation Fund supports investments in renewable energy, energy efficiency, energy storage, modernizing energy networks (including district heating, pipelines, and grids), and transition in carbon-dependent regions.

In 2021, the Fund provided €898.43 million (~$953.64 million) to eight beneficiary countries.

Finland to receive €465 million

The EU’s Just Transition Fund will also disburse over €465 million (~$493.57 million) to Finland. This represents about 24% of Finland’s Cohesion Policy allocation for 2021-2027 and supports its goal of achieving climate neutrality by 2035.

Finland is a major producer and consumer of peat in Europe, with 90% used as an energy source (equivalent to coal in terms of CO2 intensity). The Fund aims to halve peat energy use by 2030 and support the transition to a low-carbon economy through diversification of livelihoods, revitalization of economic structures, and upskilling the workforce in peat extraction.

Recently, the European Commission approved an amendment to a German government’s program called Renewable Energy Act 2023 (EEG 2023), which seeks to extend and modify the country’s support of renewable energy. The EEG 2023 support program, with an overall budget of €28 billion (~$29.6 billion), aims at achieving a share of 80% of electricity produced from renewable energy sources by 2030 and climate neutrality by 2045.

Earlier, the European Commission had approved €5.40 billion (~$5.47 billion) in funding for the ‘IPCEI Hy2Tech’ project to support research, innovation, and the first industrial deployment in the hydrogen technology value chain.