Modernisation Fund

Modernisation Fund 
Modernisation Fund is a European Union dedicated financing programme to support investments in line with the climate and energy targets by 2030, set up under Directive (EU) 2018/410.
To achieve climate neutrality and energy independence, Europe has set the following targets: 
  • reducing greenhouse gas emissions to at least 55% below 1990 levels by 2030,
  • a share of energy from renewable sources in the total used energy of at least 32%, and
  • improving energy efficiency by at least 32.5%.
With the aim of speeding up the energy transition in lower-income EU Member States, the Modernisation Fund will provide the 10 countries (along with other EU mechanisms) grant funding dedicated to investments aimed at modernisation in the electrical energy sector as well as other energy systems. The appropriations from the Modernisation Fund are available to the following beneficiary countries: Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia, where Croatia has been allocated 3.14% or 14.6 million allowances.   
Projects eligible for co-financing:

Source of financing
Modernisation Fund is financed from revenues from the auctioning of 2% of the total allowances for 2021 – 2030, and from part of the solidarity and growth transfers of auctioned allowances.
In order to fulfil the preconditions for financing from the Modernisation Fund, it has to be demonstrated that the project proposal complies with the requirements of the EU ETS Directive, is in line with the state subsidies rules, that the investment complies with other Union requirements and national regulations, and that there will be no double financing through other Union or national instruments.
Relevant state aid energy efficiency and RES allocation programmes have been adopted in the planned amount of financing for both of EUR 600 million, of which EUR 300 million was earmarked for 2022. Eligible beneficiaries are micro-, small-, and medium enterprises in the processing industry or steam and AC services. The lowest grant amount is HRK 750,000.00, and enterprises can get up to a maximum of HRK 112.5 million per individual project.

More information> 

17 April 2023: The first call for grants from the Modernisation Fund 
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