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

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1. Select

Member States select the investments they wish to submit for the Modernisation Fund support.

Direct applications by project proponents cannot be sent to the EIB, the Investment Committee 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 are two disbursement decisions per year, covering investments in all beneficiary Member States.

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5. Disburse

The EIB transfers the resources to the beneficiary Member States in accordance with the disbursement decision within 30 days of the date of disbursement decision.

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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.

Size of the Modernisation Fund

The Modernisation Fund is financed by revenues from the auctioning of emission allowances under the EU Emissions Trading System (EU ETS):

Revenues from the auctioning of 2% of the total quantity of the EU ETS allowances auctioned between 2021 and 2030.
Revenues from the auctioning of 2.5 % of the total quantity of EU ETS allowances auctioned between 2024 and 2030.
Revenues from the auctioning of EU ETS allowances that Member States have decided to transfer to the Modernisation Fund. Those transfers come from the allowances distributed for the purposes of solidarity, growth and interconnections or the allowances allocated for free to electricity generators.

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.

Daily price of EUA Futures

Allowances per beneficiary Member State

Totals for the period 2021-2030

	Share in the first category of revenues (Annex IIb part A*)	Number of allowances as per Article 10(1) third subparagraph* (2021-2030)	Share in the second category of revenues (Annex IIb revised part B*)	Number of allowances as per Article 10(1) fourth subparagraph* (2024-2030)	Total transferred allowances as per Article 10d(4)*	Total number of MF allowances
Bulgaria	5.84%	14 344 600	4.90%	9 427 107	-	23 771 707
Czech Republic	15.59%	38 293 205	12.60%	24 241 131	129 279 193	191 813 529
Estonia	2.78%	6 828 423	2.10%	4 040 189	-	10 868 611
Greece	-	-	10.10%	19 431 383	-	19 431 383
Croatia	3.14%	7 712 679	2.30%	4 424 968	5 146 608	17 284 256
Latvia	1.44%	3 537 025	1.00%	1 923 899	-	5 460 924
Lithuania	2.57%	6 312 607	1.90%	3 655 409	7 486 240	17 454 255
Hungary	7.12%	17 488 622	5.80%	11 158 616	4 000 000	32 647 238
Poland	43.41%	106 626 556	34.20%	65 797 356	-	172 423 912
Portugal	-	-	8.60%	16 545 534	-	16 545 534
Romania	11.98%	29 426 080	9.70%	18 661 823	143 617 972	191 705 876
Slovakia	6.13%	15 056 917	4.80%	9 234 717	30 138 100	54 429 734
Slovenia	-	-	2%	3 847 799	-	3 847 799
	100%	245 626 713	100%	192 389 931	319 668 114	757 684 758

* of the EU ETS Directive

The total revenues of the Modernisation Fund amount to €57 billion from 2021 to 2030, assuming a carbon price of €75/tCO₂.