Lower-income Member States (GDP per capita below 75% of the EU average) continue receiving Modernisation Fund financing for 2031-2040, funded by auctioning 2% (plus a further 0.5% channelled to Industrial Decarbonisation Bank projects) of the Union-wide allowance quantity, for energy modernisation, efficiency, industrial decarbonisation and electrification investments, including small-scale projects.
Beneficiary Member States (GDP per capita below 75% of EU average) and investment recipients therein are offered support, and this is not law yet.
Why it matters
This is a Commission proposal: it is not law yet, and it can change before it is.
- It is Art. 1(18)(a), replacing Art. 10d(1) of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: 2031-2040. as of 2026-08-14
- It names no industry: it applies across the economy rather than to one of them. as of 2026-08-14
- Compliance is checked by none, n/a. as of 2026-08-14
The rule
Member State GDP per capita at market prices below 75% of the Union average in the period 2022 to 2024
Lower-income Member States (GDP per capita below 75% of the EU average) continue receiving Modernisation Fund financing for 2031-2040, funded by auctioning 2% (plus a further 0.5% channelled to Industrial Decarbonisation Bank projects) of the Union-wide allowance quantity, for energy modernisation, efficiency, industrial decarbonisation and electrification investments, including small-scale projects.
Who is affected
Burden drivers
Source text
A fund to support investments proposed by Member States with a GDP per capita at market prices below 75 % of the Union average in the period 2022 to 2024 (the ‘beneficiary Member States’), including the financing of small-scale investment projects, to modernise energy systems, improve energy efficiency, enhance industrial decarbonisation and electrification shall be established for the period from 2031 to 2040 (the ‘Modernisation Fund’).
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