The European Commission and the European Investment Bank (EIB) have announced a major funding boost of $4.31 billion to support 34 clean energy projects across nine EU countries. This money comes from the Modernisation Fund, which is financed by the EU Emissions Trading System (EU ETS).

This is the largest amount of funding the Modernisation Fund has given out so far, raising the total support since January 2021 to about $22.5 billion. The countries receiving funds this time are:

• Croatia: $200 million

• Czechia: $1.24 billion

• Greece: $134 million

• Hungary: $213 million

• Latvia: $47 million

• Lithuania: $44 million

• Poland: $1.57 billion

• Romania: $839 million

• Slovenia: $23 million

Greece is receiving its first support since joining the fund in January 2024.

The projects focus on generating clean electricity, using renewable energy, improving energy networks, and making energy use more efficient. Some examples include:

• Croatia: Producing and using heat from renewable sources and making heating and cooling systems more efficient.

• Czechia: Investing in energy storage to save electricity from renewable sources.

• Greece: Replacing old diesel buses with new electric buses.

• Hungary: Making public buildings use energy more efficiently.

• Latvia: Expanding the electricity grid to handle more renewable energy.

• Lithuania: Building large energy storage facilities.

• Poland: Supporting programs that improve heating systems in homes and clean the air.

• Romania: Improving energy efficiency in factories and installations covered by the EU emissions rules.

• Slovenia: Upgrading power grids to better connect renewable energy sources.

The Modernisation Fund, financed through the EU Emissions Trading System (EU ETS), supports 13 lower-income EU countries in their transition to climate-neutral energy. This includes countries with GDP per capita below 75% of the EU average from 2016 to 2018, plus Greece, Portugal, and Slovenia, which joined in 2024. The Fund backs investments in renewable energy, energy efficiency, storage, and grid modernization, especially in carbon-dependent regions. It works alongside other EU programs to help these countries meet climate goals like REPowerEU and Fit for 55. Applications for funding close in August and September 2025, prioritizing projects that cut emissions and modernize energy systems.

(1 EUR = 1.178 USD)

Source: ec.europa.eu