Brussels: Today, the European Commission, in collaboration with the European Investment Bank, announced the allocation of £1.8 billion from the Modernisation Fund to support 45 clean energy investments across 12 Member States. Notably, this includes Portugal's first-ever investment since it became a beneficiary Member State in 2024.
According to Cyprus News Agency, this latest disbursement is financed by proceeds from the EU Emissions Trading System (EU ETS). Since 2021, the Modernisation Fund has supported 294 investments with a total funding of £20.7 billion. The Fund is designed to modernize energy systems in the EU, specifically targeting projects that reduce greenhouse gas emissions in energy, industry, and transport sectors, while also improving energy efficiency. These initiatives assist Member States in achieving their climate and energy targets, implementing National Energy and Climate Plans, boosting industrial competitiveness, and decreasing reliance on fossil fuel imports.
This second disbursement in 2025 follows a £3.66 billion allocation in July for 34 investments, raising the total disbursed this year to £5.46 billion for 79 projects. This year's beneficiaries include Bulgaria, Croatia, Czechia, Estonia, Hungary, Greece, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, and Slovenia, with amounts ranging from £15 million in Portugal to £1.78 billion in Czechia.
All 79 projects supported this year focus on renewable electricity generation, deployment of renewable energy sources, modernization of energy networks, and energy efficiency enhancements. Specific projects include renewable heating and cooling solutions in Bulgaria, energy efficiency improvements in Croatian heating systems, electricity storage investments in Czechia, and the modernization of the electricity network in Greece.
The Modernisation Fund is a pivotal component of the EU's climate and energy policy, targeting 13 lower-income EU countries in their transition towards climate neutrality. The Fund supports investments in renewable energy, energy efficiency, energy storage, and energy network modernization, complementing other EU tools like the cohesion policy and the Recovery and Resilience Facility. The next proposal deadlines for Modernisation Fund support are set for January and February 2026.
Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition, emphasized the Fund's effectiveness in driving change through EU ETS revenues. Wopke Hoekstra, Commissioner for Climate, Net Zero, and Clean Growth, acknowledged the Fund's impressive contribution to clean energy investment and competitiveness. Ambroise Fayolle, Vice-President of the European Investment Bank, reiterated the EIB's commitment to advancing the Fund's objectives.