The European Commission and the European Investment Bank have disbursed €1.8 billion ($1.95bn) from the EU’s Modernisation Fund to support 45 clean energy projects across 12 Member States, including the first-ever allocation to Portugal.
Funded through revenues from the EU Emissions Trading System (EU ETS), the latest tranche brings total Modernisation Fund support to €20.7 billion for 294 investments since 2021. The funding targets high-impact projects that cut greenhouse gas emissions, improve energy efficiency and modernise energy systems across the energy, industry and transport sectors.
This marks the second disbursement in 2025, following €3.66 billion released in July, taking total funding this year to €5.46 billion for 79 projects. Allocations in 2025 span Bulgaria, Croatia, Czechia, Estonia, Hungary, Greece, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia and Slovenia.
All projects supported this year focus on renewable power generation, energy storage, grid modernisation, renewable heating and cooling, and energy efficiency upgrades in buildings, industry and public infrastructure.
The Modernisation Fund supports 13 lower-income EU countries in their transition to climate neutrality and complements other EU instruments, including the Recovery and Resilience Facility and the Just Transition Fund.
