European funding for green transition

The European Commission transferred EUR 1.39 bln to Romania from the Modernisation Fund

Daniela Budu, 23.12.2022, 13:50

The European Commission has announced
that in its second year of operation the Modernisation Fund disbursed a
total EUR 4.11 bln in support of 61 projects in 8 beneficiary countries.

Romania received the largest amount, nearly one-third
of the total-EUR 1.39 bln. The project financed in Romania is aimed at building
8 photovoltaic parks and 2 power plants, as well as at upgrading the country’s
energy networks.

Payments have also been made to Croatia, Czechia,
Estonia, Hungary, Lithuania, Poland and Slovakia. According to the EC, the
Modernisation Fund is designed to support EU member states with
lower revenues in their clean energy transition. The projects will contribute
to the modernisation of energy networks, to reducing greenhouse emissions in
the energy sector, industry, transport and agriculture, and to improving energy
efficiency.

The support provided to these investments, the
Commission says, will help the beneficiary member states to reach their
environment and climate targets for 2030 and to step up the EU’s green
transition.

Last year, the Fund disbursed nearly EUR 900 mln to 8
beneficiary countries, and complemented other EU financing instruments like
the Cohesion Policy and the Just Transition Fund. The Modernisation
Fund operates under the responsibility of its beneficiary countries, in
close cooperation with the European Commission and the European Investment Bank.

For the next investment cycle, countries may submit
investment proposals in order to obtain assistance from the Modernisation Fund
by 19th January 2023 for non-priority proposals and by 16th
February 2023 for priority proposals.

For Romania, next year’s main challenge will be
related to the spending of EU funds, including those under the National
Recovery and Resilience Plan ,where 41% of the EUR 29 bln earmarked to
the country will be channelled into the green energy transition.

The head of the Romanian Investors Association
Cristian Pârvan says the top concern for the business community and
policy-makers should be the accessing of EU funding, by reaching the benchmarks
and targets undertaken under the Recovery and Resilience Plan and by
submitting, selecting and funding viable projects:

Cristian Pârvan: The business community is trying to
make progress in its mission and obviously to make profits. But it is facing
lots of challenges, from those in the energy sector to those related to
workforce, and to the fact that for the time being the European economic
solidarity is just an aspiration, rather than translating in pan-European
projects.

Cristian Pârvan also says that a firm, coherent and
targeted policy may take Romania to a higher development level. (AMP)