More than CZK 21 billion to flow to Czechia from the Modernisation Fund; only Romania to receive more

At the start of the week, the European Commission disbursed a total of three billion EUR to Member States for energy sector modernisation and support for the transition to renewable energy sources. The funds were raised from the proceeds of selling emission allowances, which were allocated to the so-called Modernisation Fund. The European Union will send a total of 835,2 mil. EUR, i.e. more than 21 billion CZK, to the Czech Republic. 

Emissions trading is frequently criticised because it increases energy prices. This is certainly true for electricity prices, as the price of an emission allowance is largely reflected in the wholesale electricity price.

However, the Czech Republic derives one important benefit from emissions trading. Through the Modernisation Fund, it receives funding from the EU EU ETS emissions trading system to modernise its energy sector and transform it towards renewable energy sources.

The European Union has already disbursed more than 13 billion EUR through the Modernisation Fund. A total of 10 Member States were eligible to access the fund's resources until the start of this year. Their number was expanded this year to include Greece, Portugal and Slovenia following the revision of the European directive on emissions trading.