Governance of the Modernisation Fund
The EU Emissions Trading System (ETS) Directive defines the roles and responsibilities of the beneficiary Member States, European Investment Bank (EIB), the Investment Committee and the European Commission.
The beneficiary Member States are responsible for:
- Implementing the Modernisation Fund on their territory
- Selecting the investment proposals they would like to support from their Modernisation Fund share
- Submitting an indicative overview of their planned investments to the Commission, EIB and the Investment Committee
- Submitting the investment proposals for confirmation by the EIB or the Investment Committee, and providing the information needed for their assessment
- Paying off the support to the project proponents or scheme managing authority(ies) upon the disbursement decision of the Commission
- Participating in the Investment Committee
- Monitoring and submitting annual reports on the implementation of the Modernisation Fund investments, including notifying the Commission of any discontinued investments and recovered funds as appropriate
- Auditing the project proponents or scheme managing authorities, submitting the results of these audits to the EIB and the Commission
- Taking appropriate measures to ensure that the financial interests of the Modernisation Fund are protected, including recovery actions
The European Investment Bank is responsible for:
- Auctioning the allowances which provide the resources of the Modernisation Fund; these allowances will be auctioned in equal annual volumes from 2021 to 2030, in accordance with the Auctioning Regulation
- Confirming whether an investment is a priority or a non-priority one
- Conducting financial and technical due diligence of non-priority investments, including an assessment of the expected emission reductions
- Managing the assets of the Modernisation Fund
- Transferring the respective resources to the beneficiary Member States following the disbursement decision of the Commission, and keeping track of the use of Member State resources
- Providing the secretariat of the Investment Committee
The Investment Committee will meet twice a year to assess non-priority investment proposals and discuss any other business relevant for the operation of the Modernisation Fund.
It will be composed of:
- 10 representatives, one per beneficiary Member State
- 3 representatives from non-beneficiary Member States, elected by all non-beneficiary Member States
- 1 representative from the EIB
- 1 representative from the Commission (chair)
Non-beneficiary Member States can join the Investment Committee also as observers. The members of the Committee will serve on a pro-bono basis, need to be free from conflict of interest and their CVs will be published.
The Investment Committee is responsible for:
- Issuing recommendations on the financing for non-priority investments
- Providing an annual report of its activities
The European Commission is responsible for:
- Taking the disbursement decision once an investment has been confirmed by the EIB or recommended for financing by the Investment Committee
- Chairing the Investment Committee
- Ensuring compliance with the ETS Directive and the implementing act on the Modernisation Fund