Modernisation Fund - First evaluation of the monitoring rules

Carbon Market Watch criticizes the EU Modernisation Fund for continuing to finance fossil gas, waste incineration, and biomass projects, noting that at least EUR 4.2 billion (27% of spending) has gone to investments not aligned with the fund's aims. The organization calls for more ambitious emissions avoidance benchmarks and a shift in funding toward grid improvements, renewables, building renovation, and public transport electrification to support lower-income member states ahead of the 2027 ETS2 implementation.

• The Modernisation Fund has allocated at least EUR 4.2 billion, representing 27 per cent of its spending to date, to investments that are not aligned with its stated objectives.
• Incorrect classification of project priority has resulted in the funding of biomass, fossil gas, and waste incineration projects, with EUR 1.88 billion specifically noted for waste incineration in Poland and Czechia.
• To date, only EUR 2.5 billion of the fund has been directed toward renewables.

APA

Carbon Market Watch (2025). Modernisation Fund - First evaluation of the monitoring rules. https://carbonmarketwatch.org/wp-content/uploads/2025/05/Eleanor-Modernisation-Fund.pdf

Chicago

Carbon Market Watch. Modernisation Fund - First evaluation of the monitoring rules. 2025. https://carbonmarketwatch.org/wp-content/uploads/2025/05/Eleanor-Modernisation-Fund.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Modernisation Fund - First evaluation of the monitoring rules |date=26 May 2025 |url=https://carbonmarketwatch.org/wp-content/uploads/2025/05/Eleanor-Modernisation-Fund.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2025modernisation, author = {{Carbon Market Watch}}, title = {{Modernisation Fund - First evaluation of the monitoring rules}}, publisher = {Carbon Market Watch}, year = {2025}, month = may, url = {https://carbonmarketwatch.org/wp-content/uploads/2025/05/Eleanor-Modernisation-Fund.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }