Glass half full? Mid-term analysis of the Modernisation Fund’s operations

Since becoming operational in 2021, the EU’s Modernisation Fund has disbursed more than EUR 20 billion, making it one of the EU’s largest financing instruments for energy investments in central and eastern Europe. Our analysis finds that between EUR 4.2 and 7.1 billion over the Fund’s first five years of operation went to investments that contradict the EU’s long-term climate, energy, and environmental objectives.