Lithuania and EIB team up in €100 million initiative for greener housing

This article is published in association with European Investment Bank.

• EIB to manage €100 million of EU funds to improve energy efficiency in Lithuanian apartment buildings
• Initiative seeks to mobilise up to €625 million for more sustainable housing
• Planned renovation of up to 700 multi-apartment buildings

The Lithuanian government and the European Investment Bank (EIB) are joining forces in a €100 million initiative to renovate more than 700 apartment buildings in the country.

The accord aims to mobilise up to €625 million for refurbishing around 700 multi-apartment buildings in numerous cities, including the capital, Vilnius.

Under the agreement with the Lithuanian Ministries of Finance and Environment, the EIB will manage the €100 million sum being provided from the European Union. The initiative supports the EU’s goal for greater energy efficiency in housing and will help Lithuania upgrade homes for thousands of families It will lead to lower energy bills for households and fewer greenhouse gas emissions from buildings.  

“Not only in Lithuania, but everywhere in Europe, access to affordable and sustainable housing is a top priority for the EIB Group,” said EIB Vice-President Thomas Östros. “This initiative reinforces our commitment in Lithuania to improving living standards and energy efficiency. By supporting this crucial project, we are enhancing energy independence and reducing emissions and at the same time reducing the energy bills for the consumers.”

“We further pursue the policy of the Government of improving not only the quality of financial services, but also the quality of life in society as a whole,” said Minister of Finance Gintarė Skaistė. “Long-term cooperation with the EIB on financing multi-apartment building renovation projects is one of the components of improving the quality of life. Through the trilateral cooperation between the EIB, the Ministry of Finance and the Ministry of Environment, the energy efficiency of multi-apartment buildings will not only be improved in the next few years, but also the energy consumption and taxes for people will be reduced.”

The EIB, as a fund manager, has financed the renovation of thousands of buildings in Lithuania as part of efforts to reduce energy consumption and emissions. Over 3,300 buildings housing 83,000 households have been renovated under EIB mandates, with almost €1.4 billion in investments.

This new agreement is a model for how investment and partnerships can address housing and energy challenges. By leveraging investments and maximising EU Structural Funds, it aligns Lithuania’s priorities with European goals for sustainability and energy independence.

“The fund under this new agreement will provide preferential loans to renovate approximately 700 apartment buildings, reducing energy consumption and contributing to the successful implementation of the Green Deal and the Renovation Wave in Lithuania. By completing these renovation projects, we will not only improve people’s quality of life but also live in a greener and more sustainable country,” said the Minister of Environment Simonas Gentvilas.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

About housing and the EIB Group

Housing is among EIB Group’s core strategic priorities, with new dedicated Task Force created to work on three areas: technological innovation in the building industry, retrofitting and energy efficiency of Europe´s housing stock, development of affordable and social housing.

This work will pave the way for the launch of a pan-European investment platform for affordable and sustainable housing announced by President Von der Leyen in her statement at the European Parliament in July.

The EIB Group has been providing financing and advisory services to the housing sector for the past 25 years. EIB Group support for sustainable urban development and renovation amounted to some €13.4 billion in the last 5 years.