EBRD Invests €25 Million in Vilnius Residential Energy Efficiency Fund

EBRD Invests €25 Million in Vilnius Residential Energy Efficiency Fund

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is supporting energy efficiency initiatives in Vilnius by investing €25 million in Šiaulių Bank’s energy efficiency fund. Managed by Šiaulių Bank, the fund aims to finance energy efficiency renovations in residential multi-apartment buildings in Lithuania, with a specific focus on Vilnius. The investment aligns with Vilnius’s Green City Action Plan and Lithuania’s goal of accelerating residential building renovations to transition towards a greener economy. By improving energy performance and reducing carbon emissions, the renovations facilitated by the EBRD’s investment will enhance the quality of life for residents, lower energy bills, and strengthen the country’s green sector. This investment underscores the EBRD’s commitment to supporting residential energy efficiency initiatives in Lithuania and contributes to the broader objective of advancing sustainable development in the region.

(PRESS RELEASE) LONDON, 22-Mar-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is supporting energy efficiency in residential buildings in Vilnius by investing in Šiaulių Bank’s energy efficiency fund.

The EBRD is lending €25 million to SB modernizavimo fondas 2, a specialised fund managed by Šiaulių  Bank to finance energy efficiency investments in residential multi-apartment buildings in Lithuania, alongside Swedbank and the European Investment Bank.

The EBRD’s loan will be fully dedicated to financing energy efficiency renovation of multi-apartment buildings in the capital city.

The renovations enabled by the EBRD investment will improve the energy performance of the buildings and contribute to a reduction in carbon emissions. This addresses one of Vilnius’s priorities under the Green City Action Plan Vilnius is developing through its participation in the EBRD Green Cities programme.  Vilnius is the first city in the Baltic states to join this programme.

The upgrades will also support the Lithuanian government’s target of accelerating the pace of residential building renovations to advance Lithuania’s green economy transition. Two-thirds of residential buildings in the country are currently classed D and lower on the European Union’s energy performance scale, as they consume 2-3 times more energy than newly constructed buildings.

This investment is a continuation of the EBRD’s support for residential energy efficiency in Lithuania.

Sue Barrett, EBRD Director for Infrastructure in Europe, Middle East and Africa said: “We are pleased to contribute to Šiaulių Bank’s efforts to support the modernisation of residential buildings in Lithuania. Such energy efficiency improvements are crucial not only to speed up the decarbonisation of the housing stock in Lithuania, but also, in an era of persistently high energy prices, to help minimise residents’ and homeowners’ energy bills”.

Vytautas Sinius, Head of Administration of Šiaulių Bank, said: “The SB Modernisation Fund is unique in that its resources have been mobilised by international and Lithuanian financial institutions, and the benefits will be felt by all – the quality of life of thousands of residents will improve, heating costs will be reduced, less CO2 will be emitted into the environment, and the business sector involved in the modernisation of apartment buildings will be strengthened.

In this way, we will all contribute to a more sustainable and beautiful Lithuania. The Lithuanian renovation financing model is an example for other countries that are tackling similar problems”.

Established in 1992, Šiaulių Bank is the fourth-largest bank in Lithuania, providing retail and commercial banking services through the largest network of outlets in the country. It has been one of the leaders in multi-apartment building renovation financing.

The EBRD is a leading institutional investor

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SOURCE: EBRD