News

26.06.2025,

DESPITE MASSIVE NEW FUNDS FOR RENOVATION UNTIL 2032, ONLY ONE IN TEN BUILDINGS WILL BENEFIT

The fourth edition of the “Mayors Talk” discussion forum highlighted the urgent need for clear and transparent criteria in implementing building renovation programmes.

Local authorities play a key role in the execution of these programmes, but in recent years, progress has slowed due to administrative hurdles at the national level. Governments are sending conflicting signals regarding funding mechanisms, while municipalities face constant pressure from citizens amidst rising demand – demand that the available public resources cannot meet. This long-standing challenge was once again at the forefront of the forum held in Gabrovo, which gathered municipal representatives, government officials, international partners, experts, and citizens from across Bulgaria. Organized by the Center for Energy Efficiency EnEffect, Gabrovo Municipality, and the EcoEnergy Municipal Network, the event aimed to spotlight the practical challenges and solutions for implementing sustainable development policies at the local level.

Deputy Minister of Regional Development and Public Works Dora Yankova noted that over 4 billion BGN will be invested in energy efficiency by 2029, including through the Recovery and Resilience Plan and the second phase of the National Energy Efficiency Programme. She emphasized the enormous public interest - over 3,000 homeowner associations have applied -  but pointed out the lack of adequate mechanisms to support small settlements and ensure a fair distribution of resources. The intention is to allocate additional funds to co-financing schemes that meet the needs of smaller buildings, but no political decision on this has yet been made.
Deputy Prime Minister Tomislav Donchev highlighted the National Decarbonisation Fund as a key tool for a sustainable energy transition, while pointing out systemic weaknesses: “Funding is not the issue. The real problem is the lack of coordination between institutions and a clear understanding of our goals. Since 2015, we've had programmes offering 100% financing, yet we've only renovated 4% of buildings.” According to him, achieving 60% renovation by 2050 is realistic if clear rules, a stable methodology, and a long-term horizon for gradually introducing co-financing by homeowners are in place. He also stressed that this process must avoid inequalities by applying differentiated rates based on income levels and regional economic development. Donchev announced that the new national programme represents a “restart” of the renovation process, offering 100% non-repayable funding until 2029. This time, added Dora Yankova, will be used to develop a National Renovation Plan, a long-term vision for continuing the programme, and the necessary implementation tools.

“100% grants are not a universal solution. In Bulgaria, there are proactive citizens willing to invest if offered the right tools. Combining grants with personal contributions not only expands the programme’s reach but improves quality and ongoing maintenance. It’s time to treat people as partners, not passive recipients of aid”, said Dragomir Tsanev, Executive Director of EnEffect. “Nine out of ten buildings need renovation, and most already know they won’t benefit from the programme until at least 2032. Yet their roofs are leaking, windows need replacing, façades are crumbling – they can’t afford to wait. This is real investment interest. We must meet it with real instruments, where and when it arises, not rely on another form of charity that reaches only a few.”

In her address, Gabrovo Mayor Tanya Hristova presented the “Gabrovo 2030” vision - a strategic framework for energy independence, smart infrastructure development, and support for active civic and business initiatives in renewable energy. “As we’ve seen during the political crisis, municipalities offer the highest level of resilience. We know how to achieve a lot with limited resources, but it is crucial that our voice is heard by the government so we can support both citizens and businesses. We are now expected to manage the Social Climate Fund. The least we need are clear rules, criteria, and timelines. Let’s not forget: we may have the funds, projects, and contracts - but municipalities must also have the capacity to implement them.”

The forum made it clear that achieving the targets requires not only a strong vision but also careful adaptation to on-the-ground realities. Discussions also covered building sector programmes from the newly published version of the Social Climate Plan, where municipalities will again coordinate implementation – though the rules for doing so remain unclear. With only 4% of multi-family buildings renovated and virtually no support for single-family homes in the last decade, the need for sustainable and practical funding models is evident. Participants agreed that programmes must be flexible enough to reflect the diverse capacities of households and municipalities – combining grants with technical assistance and personal investment. Trust in local authorities and the active involvement of local stakeholders remain critical for the effective and equitable implementation of energy policies nationwide.

The discussion forum continued with presentations of specific solutions and technological innovations, as well as a citizen workshop on the benefits of energy efficiency, renewable energy, and community-based energy models. The workshop featured combined measures for achieving energy independence in a selected urban area, including full renovation of residential and public buildings, local heating networks, and citizen-led energy communities.