News

03.09.2025,

When Good Intentions Miss the Mark: Reforming Bulgaria’s €3+ Billion Social Climate Plan

An Interview with Dragomir Tzanev, Executive Director of EnEffect in the C4E (Central & Eastern European Energy Efficiency) Forum Blog
September 3, 2025

A once-in-a-generation opportunity put at risk

With over €3 billion set aside under Bulgaria’s Social Climate Plan (SCP) for the period 2026-2032, the country has a historic opportunity to reduce energy poverty and accelerate energy-efficient building renovation. But the current draft of the plan risks squandering this opportunity by clinging to outdated, centralised models of grant financing – models that have already proven inefficient and inequitable.

The biggest concern? Despite the sheer volume of funding, there is no guarantee that it will reach those who need it most. Without urgent reform, the SCP may become yet another example of a well-intentioned initiative derailed by poor targeting, lack of transparency, and institutional inertia.

No targeting, no fairness
The plan fails to introduce any objective mechanism for identifying vulnerable households. Bulgaria still lacks a national system to define and verify energy poverty. This means that there is no fair, consistent way to ensure that the funding reaches those who cannot afford to renovate their homes on their own.

In its current form, the plan risks enabling better-off households – simply because they happen to live in the “selected” buildings – to access full public subsidies. Vulnerable groups, on the other hand, may once again be left behind.

A united call for change
This alarming scenario has led 15 Bulgarian organisations – representing civil society, academia, the energy efficiency sector, and the social field – to submit a joint position paper calling for fundamental reforms in the plan. Their message: a Social Climate Plan must be social in both design and impact. They presented the position at a recent press conference, warning that the current model repeats mistakes of the past and fails to offer a sustainable, inclusive pathway for scaling up renovation. This joint voice was not unheard – the media event resulted in more than 50 topical publications, many of which in key TV and radio broadcasts.

Three measures, three systemic failures
The SCP includes three key building-related measures – yet all are underpinned by flawed logic:

Multifamily building renovation: 100% public grants are granted to all owners in the selected buildings, regardless of income level. No need to return anything, not a single cent – the state pays, and the municipality does it all for you. Logically, the resource suffices for a limited number of buildings, and only a fraction of vulnerable households are expected to benefit – less than 3% of the estimated energy-poor population.

Single-family houses: Formally targeted at recipients of heating aid, but without the selection mechanism – municipalities decide who deserves more. Large and energy-hungry homes may be renovated for free, while many truly vulnerable households could remain excluded. No technical consultancy for the owners, too – municipalities decide which measures are suitable (and safe). But hold on: about half of the municipalities have never executed a project in residential building so far.

Energy communities: An ambitious rollout is proposed – over 3,200 projects – but without addressing Bulgaria’s regulatory barriers or building real citizen participation. Municipalities are once more given the central role, despite lacking the expertise, and no funding is foreseen for external technical support. There are currently 3 active energy communities, with 2 municipalities involved – doesn’t it look as a small issue with local capacity, again?

The full article see here