EU to spend €2 billion of ETS revenues on modernization of the energy system

EU to spend €2 billion of ETS revenues on modernization of the energy system

Katerina Belousova

During the year, the total volume of investments from the Modernization Fund reached €4.66 billion for 50 projects

The EU will allocate an additional €2.17 billion from the proceeds of the EU Emissions Trading System (EU ETS) to modernize the energy systems of 9 member states.

There are 19 projects being implemented in these low-income countries, the European Commission reports.

It is noted that these projects will help countries:

  • achieve its climate and energy goals by 2030;
  • reduce greenhouse gas emissions in the industry, energy and transport sectors;
  • increase energy efficiency.

The message said that financing will be done through the Modernization Fund, which is financed by revenues from the auction of quotas EU ETS. The fund was created in 2021 and since then it has financed a number of green projects with € 9.68 billion. In particular, in 2023, 31 projects were financed from the fund 2.49 billion.

The European Commission said that in 2023 the following received support from the Modernization Fund:

  • Bulgaria - 197 million;
  • Croatia - 88 million;
  • Czech Republic - 1.848 billion;
  • Estonia - 66 million;
  • Latvia - 5 million;
  • Lithuania - 11 million;
  • Poland - 221 million;
  • Romania – €2.169 billion;
  • Slovakia – 60 million

"The 50 projects are focused on the production of electricity from renewable sources, modernization of energy networks, energy efficiency and the replacement of coal production with fuels with lower carbon intensity," the message says.

Earlier, EcoPolitic wrote, that France, Germany, Austria, Belgium, the Netherlands, Luxembourg and Switzerland have committed to close all power plants, working on coal and natural gas, by 2035 in order to decarbonize their energy systems.

As EcoPolitics previously reported, French President Emmanuel Macron presented an environmental planning package for halving carbon emissions until 2030 thanks to increased energy efficiency and industrial production of clean technologies.

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