On July 3, 2025, the European Commission and the European Investment Bank (EIB) announced the allocation of $4.3 billion (EUR 3.6 billion) for 34 energy initiatives across nine EU member states. This funding, drawn from the EU Emissions Trading System through the Modernisation Fund, aims to modernize energy grids and enhance renewable energy capacity in Croatia, Czechia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, and Slovenia.
The projects funded by this initiative focus on various aspects of renewable energy, including electricity production, integration of clean energy sources, upgrading electrical infrastructure, and boosting energy efficiency. Specific projects include the implementation of renewable heating solutions in Croatia, the development of energy storage systems in Czechia and Lithuania, expansion of the electricity grid in Latvia, and modernization efforts in Slovenia.
These investments are expected to help the participating countries update their energy systems, resulting in reduced carbon emissions across power, industrial, and transport sectors. The funding will also assist these nations in progressing towards their climate goals.
This latest funding round raises the total investment from the Modernisation Fund to $22.5 billion (EUR 19.1 billion) since its inception in January 2021. The fund specifically targets assistance for 13 lower-income EU countries, supporting their efforts to achieve the EU’s long-term climate neutrality objectives.
