EU approves €1.8 billion clean energy boost through Modernisation Fund
Revenues from the EU ETS push the Modernisation Fund support beyond €20 billion, accelerating clean electricity, energy storage and network modernisation across lower-income Member States.
The European Commission and the European Investment Bank have approved €1.8 billion in new clean energy funding under the EU Modernisation Fund, supporting 45 projects across 12 member states.
Portugal receives funding for the first time after becoming eligible in 2024, while total support from the Fund since 2021 has now reached €20.7 billion across 294 investments.
Financed through revenues from the EU Emissions Trading System, the Fund targets high-impact projects that reduce greenhouse gas emissions in energy, industry and transport, while improving energy efficiency and strengthening energy security.
In 2025 alone, total disbursements reached €5.46 billion, with significant allocations directed to Czechia, Poland, Romania and Hungary, alongside support for Greece, Portugal and Slovenia.
All projects approved during 2025 focus on renewable electricity generation, energy storage, grid modernisation and efficiency upgrades in public infrastructure and industry.
The Modernisation Fund plays a central role in supporting national climate plans, reducing dependence on fossil fuel imports and advancing the EU’s Fit for 55 and REPowerEU objectives, with further investment proposals scheduled for early 2026.
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