Modernization Fund is a relatively new source of financing, supported at the EU level by the sale of carbon dioxide emission allowances by wealthier EU countries that have agreed to transfer part of their allowances to Central European countries and Greece.
So far, less than EUR 10 billion has been paid out
So far, less than EUR 10 billion has been paid out, and it is estimated that by the end of the decade it will be over EUR 40 billion. Last year, under the provisions of the new ETS directive, the FM value was increased by an additional 2.5%. pool of allowances – up to 4.5%, and three additional Member States – i.e. Greece, Portugal and Slovenia – have been qualified to co-finance investments related to improving energy efficiency/reducing greenhouse gas emissions under FM. Most of the funds go to three countries: the Czech Republic, Romania, which added additional rights to the account, and Poland. Bucharest and Prague have been quick to use available funds, while projects in Warsaw are progressing slowly.
Poland has several billion euros to spend from the Modernization Fund by the end of 2030, which should go to new energy sources, energy efficiency and power networks. We have spent only one tenth of this amount so far. Romania spent three times as much and the Czech Republic was slightly less, having already used almost a quarter of the funds due to them, according to the European Commission’s report.
Differences in expenses may result from national regulations
– Differences in expenses may result from national regulations. Poland has adopted more restrictive regulations than the EU directive, which may affect the pace of spending money, one of the officials tells us. He adds that applications are submitted “carefully and sensibly” every six months only for amounts that Poland is certain of spending.
We have many aid programs. The National Fund for Environmental Protection and Water Management, which is the operator of the Modernization Fund in Poland, has agreed with the European Investment Bank on 16 programs with a budget of approximately PLN 22 billion. However, just over PLN 5 billion was paid out within three years.
Comparison with the Czech Republic and Romania shows that Poland applies for small tranches and submits fewer applications for payments. The scale of investments in Poland is also often smaller – both in terms of aid programs and co-financing of individual investments.
What investments are applications submitted for? Why was so little money spent? Is the Modernization Fund also for Kowalski? Read on High Voltage
