Climate Action

Technical workshops on EU ETS funding mechanisms for modernising energy sector, including Modernisation Fund


The European Commission organised between September 2018 and January 2019 a series of technical workshops in the 10 EU Member States that will benefit from the new Modernisation Fund to be set up under the revised ETS Directive. The workshops also allowed for discussions on the possible use of the Article 10c mechanism.

The revised ETS Directive for 2021-2030 establishes a Modernisation Fund to support low-carbon investments in the energy systems of 10 EU Member States: Bulgaria, the Czech Republic, Croatia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia.

The same 10 Member States may make use of the Article 10c mechanism. The Directive allows beneficiary Member States to enable support to larger investments by transferring allowances under the Article 10c mechanism and of the redistributed auction volume to the Modernisation Fund. Member States have to notify European Commission by 30 September 2019 about the intended use and transfer of Article 10c mechanism allowances.

The European Commission organised a series of technical workshops in each of the 10 beneficiary Member States between September 2018 and January 2019 to inform stakeholders on the legal framework, benefits and choices to be made in the set-up and use of the Modernisation Fund and the Article 10c mechanism.

The workshops aimed to:

  • raise awareness about the Modernisation Fund and how it can be used;
  • raise awareness about the substantially changed rules of the Article 10c mechanism, including the competitive bidding process;
  • help build a common understanding of the key investment needs in the respective countries’ energy sectors to 2030, as well as the key support mechanisms currently in place;
  • help generate ideas and discussion on how the Modernisation Fund and Article 10c mechanism could be best used and how they could function in connection with existing funding mechanisms; and,
  • discuss the most effective and efficient possible funding instruments to disburse funds to stakeholders/projects to maximise policy benefits – including innovative methods to bring together funding streams.


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