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Renovation Wave: Innovative Investment Platform is Set Up to Increase Energy Efficiency of Multi-Apartment Buildings in Lithuania

Date

2021 01 18

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The Ministry of Finance and the Ministry of Environment and the European Investment Bank (EIB) together invest the European Union (EU) assistance to a newly developed Investment Platform to increase financing volumes for renovation of multi-apartment buildings in Lithuania and to ensure sustainability of the investments in the long term.

The government intends to invest EUR 50 million of the EU assistance to the Investment Platform managed by the Šiauliai Bank by the help of which it is planned to attract to the Platform further EUR 250 million from private national and international investors. These funds will be used for issuing soft loans to increase energy efficiency of multi-apartment buildings. The funds are allocated from the European Regional Development Fund (ERDF) to speed up the renovation of multi-apartment buildings and to contribute to carbon neutrality by 2050. This initiative will be accessible to almost 22 thousand households throughout the country.

“We support the establishment of the Investment Platform and hope that it will become a sustainable financing mechanism in renovation of multi-apartment buildings by saving up energy in them. For several years now we are a good mode of application of financial instruments for modernisation of multi-apartment buildings in Europe. Due to the Investment Platform even with limited public financial resources the government will be able to increase substantially the portfolio for project loans by attracting additional private investments to cover the financing needs”, says Vice –Minister of the Ministry of Finance Vaida Česnulevičiūtė.

“The Ministry of Environment for more than a decade actively promotes the application of financial instruments in renovation of multi-apartment buildings. The programme “Jessica” for everyone in Lithuania associates with renovation. Recently launched the Investment Platform is created on the basis of the programme “Jessica” and will considerably contribute to the EU Renovation Wave initiative. We are pleased that EIB joined as an investor being role model for other investors”, – says Vice-Minister of the Ministry of Environment Darius Kvedaravičius.

“Investments to increasing energy efficiency of multi-apartment buildings are investments to a better tomorrow of the Europeans. In the short term the investments will reduce costs of our citizens and enhance citizens' quality of life. Eventually, it will contribute to carbon neutrality in Europe aimed at sustainable and secure future of our planet. We are so pleased to cooperate with the Government of Lithuania and Šiauliai Bank in implementation of this significant project and supporting the EU Renovation Wave strategy, as this will help us to create the conditions for sustainable development in Lithuania, EU and worldwide”, said EIB Vice-President Thomas Östros responsible for operations in Lithuania.

“Šiauliai Bank is a leader in financing the housing renovation programme in Lithuania – over the last 10 years we financed more than 2,000 projects for EUR 567 million. Two out of three renovated multi-apartment buildings in Lithuania are financed by Šiauliai Bank. We have a large experience in financing housing renovation projects, also we have good relations with partners – public organisations, home-owners’ societies. We are so proud that Šiauliai Bank is a financial partner of this Investment Platform”, said Administrative Manager of Šiaulai Bank Vytautas Sinius.

This Investment Platform supports the actions necessary to reach the European climate neutrality by 2050, also the Renovation Wave – strategy which enables a twofold increase of annual energy-related renovation standards by 2030.

Innovative and regulatory Investment Platform enables private investors to join commercial banks and international financial institutions and further enhance the number of households using renovation related to energy efficiency. This Platform ensures a model which may be easy adapted in other EU Member States. Šiauliai Bank by public tender has been selected to manage the Investment Platform.