The EU Modernization Fund will provide funding to Bulgaria (197 million euros), Croatia (88 million euros), Czech Republic (1.848 billion euros), Estonia (66 million euros), Latvia (5 million euros), Lithuania (11 million euros), Poland (221 million euros), Romania (2.169 billion euros), and Slovakia (60 million euros) in 2023.

The fund will help reduce greenhouse gas emissions in the EU's energy, industry, and transportation sectors, and improve energy efficiency. These funds come from the revenue of the EU Emissions Trading System. Since its launch in 2021, the Modernization Fund has disbursed 9.68 billion euros in EU carbon emissions trading system revenue to help EU member states accelerate their green transformation.

After announcing an investment of 2.49 billion euros in 31 clean energy projects in June, the European Union recently paid 2.17 billion euros for 19 projects, bringing the total amount of the "Modernization Fund" to 4.66 billion euros in 2023 and the number of clean energy projects to 50. The EU's Modernization Fund will support Bulgaria (197 million euros), Croatia (88 million euros), Czech Republic (1.848 billion euros), Estonia (66 million euros), Latvia (5 million euros), Lithuania (11 million euros), Poland (221 million euros), Romania (2.169 billion euros), and Slovakia (60 million euros).

The focus of these 50 clean energy projects is on renewable energy generation facilities, modernization of energy networks, energy efficiency, and the replacement of coal-fired power generation with low-carbon intensity fuel.

These projects include:

Modernization of Bulgaria's distribution network to accelerate electrification of transportation and energy storage deployment, as well as decarbonization and decentralization of energy consumption and production.

Photovoltaic systems developed by Croatian urban waste service providers.

Achieve higher energy standards for public buildings in the Czech Republic and switch from coal to natural gas in regional heating.

Improve the energy efficiency of public buildings in Estonia.

Introduce electric vehicles and corresponding charging infrastructure in Latvia.

Development of renewable energy generation facilities in Lithuania's large and medium-sized industrial sectors.

The power grid of electric vehicle charging stations in Poland, as well as efficient cogeneration for regional heating and industry.

Romania's renewable energy generation capacity, modernization of distribution network, modernization of railway vehicles, and natural gas infrastructure to promote the replacement of coal-fired power generation.

The modernization of Slovakia's energy network, including the improvement of energy storage and energy efficiency.

The modernization fund earns revenue through auctions of emission quotas under the EU Emissions Trading System. The fund aims to support the transition of 10 low-income countries in the European Union towards climate neutrality. These countries include Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia. According to the revised EU Emissions Trading System, the Modernization Fund will provide financial support to three other member states (Greece, Portugal, and Slovenia) starting from 2024.

The Modernization Fund will support investments in the production and use of renewable energy, energy efficiency, energy storage, modernization of energy networks (including regional heating, pipelines, and grids), and the transformation of carbon dependent regions.

This fund supplements other EU tools, such as the Cohesion Policy and the Fair Transition Fund. It mobilizes a significant amount of resources to assist eligible EU member states in supporting investments under the REPowerEU plan and the Fit For 55 package. It is operated by beneficiary countries in close cooperation with the European Commission and the European Investment Bank.Editor/XingWentao