The Modernisation Fund: An open door for fossil gas in Romania
Report | 26 March 2024
The Modernisation Fund is supposed to channel revenues from the EU’s carbon market into the energy transition in central and eastern Europe. But it’s actually being used to further deepen the region’s dependence on fossil gas.
This report investigates how the fund is being exploited by Romania’s energy sector to fund gas projects. It examines how the bodies governing the fund – the European Commission, the European Investment Bank and the fund’s own investment committee – have been assessing candidate projects to make sure they align with the Paris Agreement and the EU’s climate and energy targets.
As of December 2023, the report reveals that EUR 521 million from the Modernisation Fund has been channelled into gas-fired power plants and gas pipelines, making the fund the main driver behind the expansion of fossil gas in Romania. All of it greenlit by EU institutions.
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