New financial resources will be available in Czech Republic from 2021

The Czech Republic will use resources from the Modernisation Fund for energy savings support.

From 2021, financial resources of approx. 4,7 bill. EUR (120 billion CZK) from recently created Modernisation Fund will be available in the Czech Republic. The Fund is a part of the revised EU Directive on Emissions Trading System (ETS) and its target is to help EU countries on the way to low-carbon energy economy.

The Fund will be financed from auctions of emission allowances in the European Union; 2% of the whole amount of allowances for the period 2021 – 2030 will be allocated for the Fund. The money from the Fund will be available to those Member States with GDP lower than 60 percent of the EU average. The Czech Republic belongs among these states.

The Czech Government has already agreed on a preliminary conception how to use these resources. According to the current proposal, approx. 2,7 billion EUR (70 billion CZK) should be preferentially invested into facilities producing electricity within ETS system, thus into power plants and heating plants. The other means will be invested into projects for increasing energy efficiency and development of renewable energy sources.