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European Investment Bank (EIB) to attract private finance into residential energy efficiency modernisation via a guarantee scheme funded by the Lithuanian Government. 

The Lithuanian Leveraged Fund, a guarantee scheme funded with EUR 100 million of EU Structural and Investment Funds (from European Regional Development Fund) and national resources, comes in support of energy efficiency investments to cut energy bills in thousands of Lithuanian homes. The structure will maximise the funds available for the “Multi-apartment Building Modernisation Programme”, a key government priority with national and municipal backing.

The fund will enable banks to increase their lending under the terms of the Modernisation Programme, thus boosting its scale and outreach across Lithuania. Rolling out the guarantee is expected to generate bank lending of up to EUR 500 million for modernisation loans, enabling the modernisation of up to 32,500 apartments in nearly 1,500 multi-apartment buildings, until 2023. This will multiply the available public resources five times in a period of growing demand for energy efficiency investments in residential housing across the country. 

“With the signature of the Leveraged Fund agreement we continue to expand on the successful JESSICA programme and take a big step forward in terms of effectively using EU funds to attract private resources for renovation of multi-apartment buildings in Lithuania.” said Romualdo Massa Bernucci, EIB Deputy Director General, “The Leveraged Fund will enable tens of thousands of apartment owners to refurbish their houses and enjoy significant energy savings. The success of this programme will have a substantial positive effect on the sustainable economic growth in the country and can improve the lives of many Lithuanians.”

Finance Minister Rasa Budbergytė added: “By establishing this risk-sharing fund we encourage an active contribution of private capital towards the renovation of multi-apartment buildings, part of which will be guaranteed by EU funds. We believe that this financial instrument will accelerate renovation works and help achieve higher efficiency. In its own right this is good news for the construction sector, which will have more work, as well as for the people, who will be able to enjoy their renovated warmer homes, while saving money on heating.”

Minister of Environment Kęstutis Trečiokas said: “Renovation is an area that yields stunning results and its positive changes can be felt by almost everyone. After refurbishing their houses, hundreds of thousands of Lithuanian residents enjoy nicer surroundings and, I have no doubt, are happier. I am very glad that along with the reduction in energy consumption in the renovated houses, CO2 emissions have decreased significantly as well. In the renovated buildings, more than 40% of the energy used for heating is saved, which is yet another step towards the preservation of the environment and a rational consumption of natural resources.”