How the Modernisation Fund works
The Modernisation Fund is implemented through the beneficiary Member States, in cooperation with the European Investment Bank (EIB), the European Commission and the Investment Committee.
The process in five steps
Selection
A beneficiary Member State selects investments it wishes to support.
Submission
The Member State submits investment proposals through the Fund process.
Assessment
The EIB confirms whether a proposal qualifies as a priority investment. Non-priority proposals undergo the applicable technical and financial assessment and Investment Committee process.
Decision
The Commission adopts the relevant disbursement decision following the applicable confirmation or recommendation.
Disbursement and implementation
Resources are transferred to the Member State, which is responsible for implementing support nationally.
Project proponents cannot submit applications directly to the EIB, Investment Committee or Commission through this process.
What project proponents should know
Project proponents cannot submit applications directly to the EIB, Investment Committee or Commission through this process. They must identify the relevant national scheme, authority or project-selection route. National application processes and timing can differ.
How the Fund differs from the Just Transition Fund
The Modernisation Fund’s just transition priority area is distinct from the EU’s separate Just Transition Fund. Both support the transition away from fossil fuels, but they operate under different regulations, budgets and governance arrangements. Companies should verify which instrument is most appropriate for their project.
| Instrument | Key point |
|---|---|
| Modernisation Fund just transition priority area | A priority area within the Modernisation Fund. |
| Just Transition Fund | The EU’s separate Just Transition Fund. |
| Both | Support the transition away from fossil fuels. |
| Regulations, budgets and governance | Different for each instrument. |
| Before applying | Companies should verify which instrument is most appropriate for their project. |
How we help
Impact Funding Europe supports project owners in understanding the national route, identifying the relevant authority and preparing the project for national selection.
Discuss your project
Official sources
FAQ
Can project proponents apply directly to the Fund?
No. Member States select and submit investment proposals. Project proponents must go through the relevant national route.
Who assesses proposals?
The EIB confirms priority-investment qualification. Non-priority proposals undergo the applicable technical and financial assessment and Investment Committee process. The Commission adopts the relevant disbursement decision.
How long does the process take?
Timing varies by Member State and by project. National application processes and timing differ.
How does the Modernisation Fund differ from the Just Transition Fund?
They are separate instruments with different regulations, budgets and governance. Both support the transition away from fossil fuels, but companies should verify which is most appropriate for their project.
How can Impact Funding Europe help?
We help project owners understand the national route, identify the relevant authority and prepare the project for national selection.
Modernisation Fund scope, timelines, eligibility and funding routes depend on official EU documents and Member State decisions. This page is for general information and does not constitute legal advice or a guarantee of funding.
