European funding for green transition

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)