Bulgaria Aims for Extensive Building Renovation by 2050 with €19 Billion Investment

Bulgaria has launched a national strategy to renovate its building stock by 2050, requiring an estimated €19 billion investment. The plan, submitted to the European Commission in December 2025 and expected to be finalized by the end of 2026, focuses on improving energy efficiency and reducing carbon emissions. This initiative aligns with the National Development Programme BULGARIA 2030 [1] and the national Recovery and Resilience Plan. [2]

Key Goals and Timelines

The renovation plan targets increasing the percentage of rehabilitated residential buildings from the current 4% to 16% by 2035. This will involve renovating 79 million square meters of residential buildings and 15.4 square kilometers of non-residential buildings by 2035. [4]

Funding Sources

The initiative will be funded through a combination of national and European sources. Approximately €2 billion will approach from the Just Transition Fund and the Social Climate Fund. [4] The remaining €17 billion will be sourced from the National Decarbonization Fund, which will receive revenue from emissions trading and contributions from the national budget. The fund will also incorporate all European funds designated for building energy renovation. [4]

Financing Mechanisms

The renovation program will employ several financing mechanisms:

• 100% Financing: Initially, some projects will receive 100% funding.
• 30% Grant & Loan Guarantees: A significant portion of funding will be provided as a 30% grant, with banks offering loans at a 1% interest rate, guaranteed by the Decarbonization Fund.
• ESCO Contracts: Energy Service Company (ESCO) contracts will be utilized, particularly for public buildings, where loan repayments are covered by energy savings.
• New Financial Instruments: Additional financial instruments will be developed to support single-family home renovations.

Priorities and Implementation

Priority will be given to renovating kindergartens, schools, and state hospitals in the non-residential sector. [4] The implementation will be coordinated by the regional ministry, with municipalities acting as intermediaries between citizens and the ministry. “One-stop shops” will be established in regional cities to assist citizens with applications and expert selection. [4]

Government Priorities

The renovation plan is part of a broader set of government priorities, including accession to the Schengen Area by the end of 2023 and accession to the Eurozone on January 1, 2025. [2]