Bulgaria Faces Hurdles in Ambitious Building Renovation Goals

The European Commission is pushing Bulgaria to quadruple the rate of building renovations by 2030, a target officials within the country say is likely unattainable given current progress. While the nation has submitted a National Building Renovation Plan by 2050, concerns are mounting over the feasibility of meeting the interim goals set by the EU.

National Renovation Plan Targets

Bulgaria’s plan aims to renovate 16% of its building stock by 2030, increasing to 22% by 2035, and exceeding 60% by 2050. These targets are designed to improve energy efficiency and reduce consumption, with projected savings of up to 16% by 2030 and 22% by 2035. The plan encompasses both residential and non-residential buildings, targeting the renovation of 56 million square meters of living space by 2030 and an additional 23 million square meters by 2035. For non-residential buildings, the goal is to renovate 15.4 million square meters by 2030 and 3.3 million square meters by 2035.

Concerns Over Implementation

Experts are skeptical about Bulgaria’s ability to meet these ambitious targets. Tsveta Nanyova, vice-chairman of the Board of Directors of the Bulgarian Facility Management Association, stated that a significant acceleration in renovation rates is unrealistic, recommending a rescheduling of the goals. Analysis indicates that only 4% of Bulgaria’s building stock has been renovated in the past 20 years, making a jump to 16% within four years highly improbable. Dragomir Tsanev, executive director of the Center for Energy Efficiency EnEfect, too suggested reducing the 2030 targets to more achievable levels.

Financial Investments and Funding Sources

Achieving the renovation goals will require an estimated investment of 20 billion euros by 2035. Funding will come from a combination of sources, including the Bulgarian state budget, the European Union, the Social Climate Fund, the Decarbonization Fund, and the Just Transition Fund. The Decarbonization Fund is expected to be a key instrument, combining grants, guarantees, and loans to mobilize investment. Initial focus will be on renovating single-family residential buildings.

Decarbonization Fund Challenges

Despite being established at the complete of 2025, the Decarbonization Fund is facing delays in becoming fully operational. As of early March 2026, a Board of Directors has been appointed, but the selection of an executive director is still underway. Renovations for single-family homes will likely require co-financing from homeowners, though the specific percentage remains to be determined as financial instruments are still being developed.

Current Programs and Future Plans

The plan relies on the continuation of existing remediation programs, investments from the Recovery and Resilience Facility, and the implementation of the second stage of the National Energy Efficiency Program. A key objective is to move away from short-term programs and establish a sustainable market for building renovation, making it a consistent national policy.

Complex Service Centers and Institutional Coordination

To facilitate the plan’s implementation, the establishment of complex service centers is envisioned. These centers will provide assistance to citizens and businesses throughout the renovation process, from project preparation to financing and implementation. Improved coordination between the Ministry of Regional Development and Public Works, the Ministry of Energy, the Ministry of Environment and Water, the Ministry of Finance, and municipalities is also crucial.

Bulgaria was among the first eight countries to submit a National Building Renovation Plan to the European Commission in late 2025 [1].

The European Commission partially greenlit Bulgaria’s payment request [1], but has withheld part of the third payment under the Recovery and Resilience Facility (RRF) [2].