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EU Disburses $2.86 Billion for Clean Energy Projects Across 11 Countries

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The European Commission and European Investment Bank on Thursday approved the disbursement of 2.5 billion euros ($2.86 billion) from the EU's Modernisation Fund to finance 51 clean energy projects across 11 member states, using proceeds generated through the bloc's Emissions Trading System.

The latest allocation brings total funding distributed by the Modernisation Fund since its launch in 2021 to 23.2 billion euros, underscoring the European Union's continued efforts to modernize energy infrastructure and reduce reliance on fossil fuels.

Among member countries, Romania received the largest allocation at 636.9 million euros, followed by Hungary and Czechia, at 552.3 million and 516.8 million, respectively.

The projects are aimed at improving energy efficiency across the energy, industrial and transportation sectors while reducing greenhouse gas emissions.

Investments include renewable power generation, battery storage, electricity grid modernization, district heating upgrades, industrial decarbonization and the electrification of public transport.

Among the projects receiving support are battery energy storage installations in Romania, electricity grid digitalization in Hungary, geothermal district heating in Croatia, electric trolleybuses in Estonia, electric buses and charging infrastructure in Latvia, and renewable power generation and grid upgrades in Slovenia, among others.

"The Modernisation Fund is a great example of channelling revenues from the EU ETS to investments that advance competitiveness in the climate transition," the EU's Executive Vice-President for Clean, Just and Competitive Transition Teresa Ribera said in a statement.

Climate Commissioner Wopke Hoekstra said the investments would help deliver "more affordable and secure energy for citizens and businesses," while strengthening Europe's energy independence through greater deployment of renewables, modern electricity grids and energy efficiency.

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