Twelve European Union countries have formed an alliance to request greater financial support for the energy transition from the European Commission . The initiative, spearheaded by Poland , seeks to extend and strengthen the Modernisation Fund once its current term expires in 2030, within the framework of the upcoming reform of the European Union Emissions Trading System (EU ETS).
The coalition is made up of Bulgaria, Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia , who sent a joint letter to Brussels demanding more resources to address the growing challenges of decarbonizing and modernizing the European energy system.
The proposal comes at a key moment, as the European Commission plans to present in July 2026 a draft with the comprehensive review of the EU ETS, a mechanism that determines both the functioning of the carbon market and the financing of the Modernisation Fund.
More resources for the energy transition
The signatory countries believe that the current scheme should be strengthened after 2030 to ensure sufficient investment in energy infrastructure and maintain the competitiveness of European economies during the decarbonization process.
In the case of Poland, the goal is to secure resources that will allow it to accelerate the abandonment of imported fossil fuels and continue modernizing its energy system over the next decade.
According to the Polish government, the formation of this alliance represents one of the greatest consensuses recently reached among member states regarding the future of European climate policy.
A fund financed through the carbon market
The Modernisation Fund is financed through revenues obtained from the sale of CO₂ emission allowances within the European Emissions Trading System (EU ETS).
The resources are distributed among the Member States considering criteria such as per capita income and the modernization needs of their energy sectors.
Poland is currently the main beneficiary of this financial instrument.
Since 2020, the country has received 53.5 billion zlotys (PLN) , earmarked for energy efficiency projects, modernization of public buildings, replacement of heating systems, incorporation of residential energy storage, expansion of electricity networks, infrastructure for electric vehicles, and development of renewable energy and biogas.
The future of the Fund will be defined by the reform of the EU ETS
The current Modernisation Fund will remain in force until 2030, so its continuation will depend on the decisions adopted by the European Union during the next review of the EU ETS.
In addition to requesting an expansion of the fund, Poland is proposing a broader reform of the emissions trading system, with the aim of adapting climate policies to new geopolitical conditions, strengthening European industrial competitiveness, and aligning the pace of emissions reductions with technological development.
With this coalition of twelve countries, Warsaw seeks to gain greater political weight in the negotiations that will define the regulatory and financial framework for the European energy transition for the next decade.