EU Energy Transition: 12 Nations Demand Extended Funding Past 2030

Twelve European Union member states, including Poland, have issued a joint appeal for the continuation and expansion of the Modernization Fund beyond 2030 to bridge significant energy investment gaps.

Calls for Continued Modernization Support

Twelve European Union nations have formally requested that the Modernization Fund remain active after 2030. The signatories are advocating for an increase in the resources allocated through this mechanism, which is designed to support the modernization and transformation of the energy sector.

The Financial Backbone of the Fund

The Modernization Fund is financed through revenues generated by the sale of emission allowances under the EU Emissions Trading System (ETS). It is estimated that Poland alone will receive approximately 14 billion euros (60 billion PLN) from this fund between 2021 and 2030.

Signatories and Strategic Objectives

The appeal was signed by Poland, Bulgaria, Croatia, the Czech Republic, Estonia, Greece, Lithuania, Latvia, Romania, Slovakia, Slovenia, and Hungary. These Central European states emphasize that the fund is a vital instrument for member states with lower and middle incomes, where the energy transition presents substantial challenges.

Flexibility for Zero-Emission Technologies

The 12 nations are also calling for greater flexibility in how these funds are utilized to better meet the specific needs of beneficiary countries. The goal is to facilitate investments across all available zero-emission technologies.

Upcoming Reforms

The European Commission is scheduled to announce a reform of the ETS system on July 15.