Croatia will receive €40 million for electricity generation from renewables as part of a €2.4 billion package which the European Modernisation Fund made available to seven beneficiary countries on Wednesday.

The Fund is funded by revenues from the auction of emission allowances from the EU’s Emissions Trading System and aims to support ten EU countries with lower incomes in their transition to climate neutrality.

The beneficiary countries are Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia.

This is the third investment cycle of the Modernisation Fund, which has made €2.4 billion available for 45 projects in seven member states. The investments are made in electricity generation from renewable sources, modernisation of energy networks and energy efficiency in the energy sector, in industry, in buildings, as well as in transport, and the replacement of coal generation with lower carbon intensity fuel.

The highest amount goes to Romania (€1391.6 million), followed by Czechia (€520 million), Poland (€244.2 million), Lithuania (€85 million), Hungary (€74.3 million), Slovakia (€49.5 million), and Croatia (€40 million).

With revenues from the emissions trading system, European Commission Executive Vice-President Frans Timmermans said, the Modernisation Fund “delivers concrete results on the ground, helping beneficiary countries reduce greenhouse gas emissions in key sectors and become climate neutral. Moreover, this major financial injection is available to launch projects that will help speed up our energy transition in response to Russia’s invasion of Ukraine.”