Evaluation of the Modernisation Fund
Publication date: 4 August 2026 | Report language: EN
This report presents the first evaluation of the EU Modernisation Fund, established in 2021 to help lower-income Member States modernise their energy systems, improve energy efficiency and advance the transition to a low-carbon economy. Financed through EU Emissions Trading System revenues, the Fund is a major solidarity instrument within the EU climate policy framework.
The evaluation finds that the Fund has already reached significant scale: by mid-2025, 194 investments had been approved across 12 Member States, representing €18.9 billion in disbursements and approximately €71.7 billion in total estimated investment costs. Most funding is directed towards renewable energy, energy efficiency, storage and energy-network modernisation.
Its distinctive contribution is to look beyond financial commitments and assess how effectively funding is converted into projects and results on the ground. Combining a purpose-built investment database, stakeholder surveys, interviews and case studies, the study identifies the governance, administrative-capacity, monitoring and permitting factors that shape implementation. It also provides forward-looking recommendations on simplification, digitalisation, stronger monitoring, coordination with other funding instruments and the inclusion of emerging low-carbon technologies.
