How it works
Beneficiary Member States will work in close cooperation with the European Investment Bank (EIB), with the European Commission (EC) and the Investment Committee set up for the fund.
Key steps in the financing process
1. Select
Member States select the investments they wish to submit for Modernisation Fund support.
Direct applications by project proponents cannot be sent to the EIB, the Investment Commitee or the EC.
2. Submit
Member States submit the proposed investments to the EIB, the Investment Committee and the EC at any time of the year.
3. Assess
The EIB confirms if the investment is a priority investment.
For non-priority investments, the EIB conducts a technical and financial due diligence assessment.
4. Decide
The EC takes a disbursement decision once an investment is confirmed as priority by the EIB, or recommended for financing by the Investment Committee as non-priority.
Following the IC meetings there will be two disbursement decisions per year, covering investments in all beneficiary Member States.
5. Disburse
The EIB transfers the resources to the beneficiary Member States in accordance with the disbursement decision within 30 days.
6. Monetise and asset management
The EIB acts as the auctioneer for the sale of EU allowances and receives the proceeds of each auction, on behalf of the beneficiary Member States.
Additionally, it manages the proceeds in a single portfolio according to mutually agreed asset management guidelines and fully transfers the revenues to the Member States.
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Size of the Modernisation Fund
The Modernisation Fund is funded from
- revenues from the auctioning of 2% of the total allowances for 2021-30 under the EU Emissions Trading System (EU ETS)
- additional allowances transferred to the Modernisation Fund by beneficiary Member States – five opted to do so (Croatia, Czech Republic, Lithuania, Romania and Slovakia).
Carbon Emission Allowances – daily price
Find out the daily price of EUA Futures (in €) for one lot of 1000 Carbon Emission Allowances (EUA), with each EUA being an entitlement to emit one tonne of carbon dioxide.
Allowances per beneficiary Member State
Totals for the period 2021-2030
| Share of the Modernisation Fund* | Number of allowances | Transfers from Article 10(2)(b)** | Transfers from Article 10c** | Transfers totals*** | Total | |
|---|---|---|---|---|---|---|
 Bulgaria |
5.84% | 16 095 825 | 0 | 0 | 0 | 16 095 825 |
 Czech Republic |
15.59% | 42 968 135 | 38 722 276 | 111 462 281 | 150 184 557 | 193 152 692 |
 Estonia |
2.78% | 7 662 054 | 0 | 0 | 0 | 7 662 054 |
 Croatia |
3.14% | 8 654 262 | 0 | 5 978 852 | 5 978 852 | 14 633 114 |
 Latvia |
1.44% | 3 968 834 | 0 | 0 | 0 | 3 968 834 |
 Lithuania |
2.57% | 7 083 265 | 0 | 8 696 818 | 8 696 818 | 15 780 083 |
 Hungary |
7.12% | 19 623 677 | 0 | 0 | 0 | 19 623 677 |
 Poland |
43.41% | 119 643 793 | 0 | 0 | 0 | 119 643 793 |
 Romania |
11.98% | 33 018 490 | 81 673 875 | 86 073 704 | 167 747 579 | 200 766 069 |
 Slovakia |
6.13% | 16 895 104 | 1 783 231 | 33 228 414 | 35 011 645 | 51 906 749 |
| 100% | 275 613 439 | 122 179 383 | 245 440 068 | 367 619 451 | 643 232 890 |
*Share as per Annex IIb of the ETS Directive
**Articles of the ETS Directive
***Transfers from Article 10(2)(b) (solidarity) and Article 10c