Top European bank provides 40 million euros financing for implementation of energy efficiency solutions in households of Moldova

The European Bank for Reconstruction and Development (EBRD) has launched the residential green financing programme in Moldova, worth 40 million euros, which aims to help families modernize their homes, reduce energy invoices and carbon emissions.

Under the Programme, partner financial institutions will be able to provide financial support along with investment incentives of up to 35 per cent for eligible energy-saving measures. The facility is meant to provide direct benefits to families and companies in Moldova, with typical projects capable of reducing energy invoices by up to 30 per cent.

The financial resources will be accessible to individual homeowners, who can use the money to implement energy efficiency solutions, such as thermal insulation of walls, roofs, replacing windows and doors, setting efficient heating systems and installing photovoltaic panels.

At the same time, the programme is intended for housing associations, which can benefit from complete building upgrades to improve efficiency and thermal comfort. Moreover, construction companies and developers will be able to access financial resources, in order to build residential properties which meet high energy performance standards.

Present at the event on the launch of the new financing programme, EBRD Moldova Head Giuseppe Grimaldi said that the new financing tool aimed to support both companies and homeowners in their efforts to invest in energy efficiency.

“This mechanism combines the development of the local financial market and the realization of green benefits for communities. We are trying to apply this mechanism in as many countries as possible and are pleased to bring it to  Moldova. The goal is to accelerate energy efficiency and investments in renewable energy across residential spaces throughout the country. We do not only provide financing, but an entire support package, including capacity-building support, technical assistance and investment incentives to help local banks and partners apply sustainable solutions. We want green financing to become more accessible to the end beneficiaries,” the official said.

The programme is supported by the European Union and Norway. The head of the political section of the EU Delegation in Moldova, Mate Csicsai, said that  Moldova had done an extraordinary job in reducing energy dependence, diversifying energy sources and leveraging local energy production opportunities. According to the official, with the support of the new financial instrument, energy efficiency solutions become closer and more accessible to families in Moldova.

“Together with the EBRD and Norway, the EU is proud to support this initiative, as it sends a very clear message: investments in energy efficiency and climate resilience are not only necessary for environmental protection, but they also mean smart economic and social policy. In Europe, the largest energy consumers are buildings, and in Moldova, more than 70 per cent of them were built before the 1990s, meaning that they were constructed without consideration for insulation or energy performance aspects. Consequently, half of the total energy consumption in Moldova goes to maintaining these buildings and families find themselves in a situation where they consume more energy, are exposed to volatile prices and domestic comfort is not such high,” Mate Csicsai noted.

Andreas Karlberg Pettersen, representative of the Norwegian Agency for Development Cooperation, emphasized that the programme launched in Chisinau aimed to be a catalyst in energy efficiency.

“It is a joint commitment to support Moldova's green transition and find green solutions for residential spaces. Under the mechanism, local financing will be provided, so that green investments are more accessible for individuals and businesses in Moldova,” Pettersen said.

Internationally, through similar programmes, the EBRD has channeled over 8 billion euros in 29 countries through 220 partner institutions, enabling over 268,000 green investments that together avoid approximately 11 million tons of CO₂ annually.

According to statistics data, in 2022, buildings in Moldova were responsible for approximately 53 per cent of the total final energy consumption at nationally, considerably exceeding other sectors, such as transport or industry. Most existing buildings in the country were built during the Soviet era, between the 1960s and 1990s, or even earlier, in a technological and regulatory context that did not emphasize energy efficiency. Energy audits have shown that energy losses can reach 50-60 per cent in many cases, generating high costs for building users and a significant carbon footprint.

In recent years, authorities have launched multiple initiatives and financing programmes to promote energy efficiency solutions, and the government, through the Energy Efficiency Fund in Residential Sector in Moldova, is financing, for the first time, energy efficiency works in apartment blocks and private houses.