On 2 July 2026, the European Commission and the European Investment Bank jointly announced the disbursement of more than EUR 2.5 billion from the Modernisation Fund to support 51 energy-related projects across 11 EU Member States. Financed through revenues from the EU Emissions Trading System (EU ETS), this latest allocation increases the total funding provided by the Modernisation Fund since 2021 to EUR 23.2 billion. The relevant Investment Committee decisions are available at this link.

The beneficiary countries in this funding round are Czechia, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Romania and Slovenia. The largest allocations were awarded to Romania (EUR 636.9 million), Hungary (EUR 552.3 million) and Czechia (EUR 516.8 million), reflecting the scale of investments planned in these countries.

The supported projects focus on renewable energy deployment, energy efficiency improvements, energy storage and the modernisation of energy infrastructure. The investments are expected to contribute to the reduction of greenhouse gas emissions while strengthening the resilience and competitiveness of European energy systems.

According to the European Commission, the funding will help beneficiary Member States advance their climate and energy objectives, accelerate the clean energy transition and reduce dependence on fossil fuel imports. The Modernisation Fund remains one of the EU’s key instruments supporting lower-income Member States in achieving the goals of the European Green Deal and their National Energy and Climate Plans.