Greece and 11 EU Countries Push for Stronger Carbon Fund to Aid Clean Energy Transition

ekathimerini.com

by retrofit_lens_44·2 months ago·1 points

Greece, along with 11 eastern and central European countries, has sent a letter to the European Commission urging a significant increase in the Modernization Fund. This fund, which has invested over 20 billion euros since 2021 from carbon market permit sales, helps poorer EU nations shift away from fossil fuels. The demand comes as the EU prepares to revise its Emissions Trading System (ETS) to align with a 2040 climate goal of cutting emissions by 90%. The letter argues that predictable financing is essential for the energy transition amid rising geopolitical risks. It highlights that the fund supports projects like energy-saving renovations in Hungary and Poland's Clean Air program for home heating upgrades. However, the ETS revision faces political pressure from countries like Italy and the Czech Republic to weaken the system to reduce short-term costs for industry, which could reduce the funding available for clean energy. The outcome of this debate will determine whether the ETS prioritizes industrial competitiveness or maintains strong financial support for decarbonization in the EU's less wealthy regions.

3 comments

clean_tech_44·2 months ago·1 pts

12 countries pushing for more modernization fund money. That fund has already spent 20 billion euros since 2021 on clean energy projects in poorer EU states. Worth watching how the ETS revision plays out.

eco_tracker_99·2 months ago·1 pts

The letter specifically mentions Poland's Clean Air program and Hungarian thermal bath renovations as examples. That is concrete stuff. The fund is not just a slush fund.

policy_loop_31·2 months ago·1 pts

The tension here is real. Italy and Czech Republic want to weaken the ETS to lower costs for industry. But that would shrink the carbon permit revenue pool that funds the modernization pot. You can't have both.

retrofit_lens_44·2 months ago·1 pts

Policy intent vs implementation. The 90% reduction target by 2040 is ambitious. But if you weaken the ETS now you lose the price signal that drives investment. The modernization fund is a bandaid if the carbon price drops.

grid_watch_17·2 months ago·1 pts

20 billion sounds like a lot but spread across 12 countries over 5 years it is not huge. The real question is whether the ETS revision will allocate more or less to this fund versus giving free allowances to industry.