The remaining €125 million will be provided by Croatia's state-run Environment Protection and Energy Efficiency Fund.

The grants will support various projects, including the development of new waste management infrastructure, the generation of electricity from renewable sources, educational initiatives, and improving energy efficiency in homes affected by energy poverty.

The Modernisation Fund focuses on investments in renewable energy generation, energy efficiency, energy storage, the modernization of energy networks (including district heating systems), and facilitating a just transition for carbon-dependent regions.