EBRD, EIB and EU invest €75 million for a more energy efficient Moldova

EBRD, EIB and EU to finance energy efficiency renovations in public buildings in Moldova, including hospitals, schools and kindergartens Improved energy efficiency is key to Moldova`s energy independence, faster transition to a carbon-neutral economy and the success of global climate action This Team Europe operation is part of a flagship initiative in Moldova under the European Union`s Economic and Investment Plan for the Eastern Partnership

The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the bank of the European Union and the European Union (EU) will jointly provide €75 million to improve energy efficiency and reduce the energy consumption of public buildings in Moldova. This is the first national energy efficiency project implemented in the country.

The EBRD and EIB are supporting Moldova’s energy efficiency of public buildings by lending €30 million each, with the European Union complementing the investment with €15.2 million in grants from its Neighbourhood Investment Platform (NIP) and Eastern Partnership Technical Assistance Trust Fund (EPTATF). EU grants will finance the technical assistance in support of project implementation with €2.8 million and increase the number of energy efficient renovations of public buildings with €12.4 million.The EIB will manage the EU grant.

About 60 per cent of final energy consumption in Moldova relates to the buildings sector. Greater energy efficiency will be achieved through improving the insulation of buildings, installing more energy efficient lighting, heating, cooling and ventilation systems, integrating renewable energy sources and introducing efficient energy management practices.

Mark Bowman, EBRD Vice President for Policy and Partnerships, said: “Greener buildings and related energy savings will help Moldova reduce its overall energy consumption and, no less important, its energy bill. Energy and resource efficiency, as well as greater renewable energy generation capacity, represent the main ways to reduce dependency on imports of energy sources.”

The project is expected to attract private sector expertise and include energy performance provisions and technical specifications in construction contracts. It will be a major opportunity to create local jobs and boost the construction sector in Moldova.

Teresa Czerwinska, EIB Vice-President, who is in charge of operations in Moldova, said: “The success of climate action to save the planet from the devastating effects of global warming will depend significantly on our ability to make our cities more energy efficient. Cities consume most of the planet’s energy and create most of the CO₂ emissions, which makes projects like this one immensely important for a green, safe and sustainable future for Moldova, Europe and the entire planet. Benefits to society at large include reduced pollution and improved health and working environments in buildings. The European Investment Bank is very proud of our contribution and our fast-growing partnership with the Republic of Moldova and stands ready to step up our activities and accelerate the social and economic growth of the country.”

Jānis Mažeiks, EU Ambassador to the Republic of Moldova, said: “Investing in energy efficiency is a win-win strategy that increases the energy security of the Republic of Moldova. The European Union contributed with a considerable grant to the “Moldova Energy Efficiency programme”, the first nation-wide energy efficiency initiative in the country. This support will improve the central and local governments’ ability to undertake comprehensive energy efficiency measures. We are glad that the successful work done on energy efficiency, with EU support, over the last years will be scaled up with such an ambitious programme. It will refurbish public buildings with a direct and tangible benefit for the citizens. The programme will drive economic development and prevent CO2 emissions, as per scope of a Green Transition.”

Andrei Spinu, Deputy Prime Minister and Minister of Infrastructure and Regional Development, commented: “The Republic of Moldova, like other countries, has gone through a period of energy crisis that has motivated the strengthening of a better strategy, but also the use of this crisis as an element to increase energy security and efficiency. This financial support from European partners is a great step towards becoming more independent, competitive, and resilient in energy issues. We are very grateful that the EU is always with us through extraordinary projects for our citizens. Such financing agreements bring us closer to European standards at the highest level.”

The operation is a part of a wider Team Europe effort to support Moldova, accelerate its green and sustainable social and economic growth, achieve energy independence, and decarbonise its economy. It also supports global climate action by reducing greenhouse gas emissions, a major contributor to global warming.

This project supports improved energy efficiency as one of the five flagship initiatives of the European Union`s Economic and Investment Plan for the Eastern Partnership for Moldova. The operation was announced today at the EU Eastern Partnership Summit in Brussels.