EC Modernization Fund: €1.2bln Support for ‘Green’ Investments in Greece

Greece is set to receive funds totaling 1.2 billion euros from the Modernization Fund by 2030 by submitting proposals for subsidized programs in the framework of the European Union’s climate neutrality goals.

To this end, the Secretary-General for Energy, Aristotelis Aivaliotis, recently visited Brussels to discuss Greece’s actions with European officials moving forward.

The Modernization Fund was established to support EU member states with a GDP per capita below 60% of the EU average in achieving the goals of decarbonization and transitioning to a zero-emission economy. Currently, ten countries benefit from the fund, and as of early 2024, Greece, Portugal, and Slovenia have been added to the list of beneficiary member states.

The revised fund aims to help 13 lower-income EU countries modernize their energy systems and improve energy efficiency (Bulgaria, Czechia, Estonia, Croatia, Greece, Hungary, Latvia, Lithuania, Portugal, Poland, Romania, Slovakia and Slovenia) and will receive an additional 2.5% of the overall amount of Emissions Trading System (ETS) allowances over 2024-2030.

Greece is estimated to claim around 130 million euros in 2024 via investment proposals it can submit for approval in October to the Fund’s Investment Committee. Overall, Greece could access approximately 1.2 billion euros by 2030 – potentially reaching 2 billion if the cost of emission allowances increases again -, collected from auctions of emission allowances the country is entitled to, calculated at an average price of around 60 euros per ton of CO2.

Since its establishment in 2021, the Modernization Fund dispersed funds totaling 9.68 billion euros for 137 confirmed plans accelerating the green transition.

Priority investments, comprising 70% of the Fund’s resources, include projects related to renewable energy production and use, energy storage, improving energy efficiency in transportation, buildings, agriculture, modernizing energy networks, and supporting a just transition for regions towards decarbonization.

Before each Investment Committee meeting, the European Investment Bank calculates the available funds for each eligible member state. After the meeting, the Investment Committee issues a single disbursement decision for all proposals, and one month after the disbursement decision date, the European Investment Bank transfers the respective amounts to the beneficiary member states.

Source: tovima.com