MODERNISATION FUND
Transition to climate neutrality
General Directorate of State Aid and European Funds
Transition to climate neutrality
General Directorate of State Aid and European Funds
In the context of European legislation on combating climate change and the energy transition, the aim is to raise the level of ambition to reduce emissions, increase the share of renewable energy sources, energy efficiency measures and the level of interconnectivity of electricity networks.
The Modernisation Fund is a new financing instrument that contributes to the objectives of the European Green Agreement by supporting a socially right transition to a green economy.
The Modernisation Fund is intended for projects that modernize energy systems and improve energy efficiency in the Member States with a GDP per capita of less than 60% of the Union average in 2013. This mechanism supports investments in the production and use of electricity from renewable energy sources, energy efficiency, energy storage, modernization of energy networks, including district heating, pipelines and grids, and the correct transition to carbon-dependent regions in 10 countries: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia.
The Modernisation Fund was established by Directive (EU) 2018/410 of the European Parliament and the Council on 14 March 2018 amending Directive 2003/87/EC in order to reduce the carbon dioxide emissions and have more cost-effective investments and Decision (EU) 2015/1814 to support investments in the modernization of energy systems and the improvement of energy efficiency, including the financing of small-scale investment projects, in line with the objectives of the Union’s 2030 climate and energy policy framework and the long-term objectives of the Paris Agreement.
The Modernisation Fund is made up of the income generated from the auctioning of 2% of the total quantity of allowances allocated to Member States through the EU-ETS for the period 2021-2030. Romania has been allocated 11.98% of the 2% of the total quantity of allowances allocated to Member States through the EU-ETS for the period 2021-2030, which it can use to finance investments, as set out in Annex IIb of the revised EU-ETS Directive.
At the same time, the EU-ETS Directive provides for the possibility for Member States benefiting from the Modernisation Fund to transfer all or part of the allocation granted free of charge under Article 10c, as well as the possibility to transfer all or part of the amount of allowances from the Solidarity Fund provided for in Article 10(2)(b). This possibility has been used by the beneficiary Member States Croatia, Czech Republic, Lithuania, Romania and Slovakia.
Source: https://modernisationfund.eu/
RO