Social Climate Fund: Risks and Challenges in the Distribution of 5 Billion Leva

25.07.2025 | Ecology

Experts from the non-governmental sector express concerns about the effective allocation of funds from the Social Climate Fund, highlighting the lack of an adequate system for identifying energy-poor households.

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Between 2026 and 2032, Bulgaria will have over 5 billion levs from the Social Climate Fund, but there are serious challenges in their targeted allocation. According to leading experts, the lack of a precise mechanism for identifying the most in need creates significant risks of ineffective use of financial resources.

Dragomir Tsanev, head of the "Energy Efficiency Center EnerEffect" foundation, emphasizes the critical lack of a national system for collecting data on the social status and housing conditions of households. This systemic shortcoming seriously complicates identifying truly energy-poor population groups.

The expert points out that there is a high risk that funds will be directed to households that actually do not urgently need support. An additional challenge is the delegation of responsibilities to local authorities, who must assess the concentration of energy-poor people in specific building complexes.

The state has developed a financing distribution plan in four main directions. A positive aspect is the focus on single-family buildings - a sector that has not been the subject of targeted support before. Renovation is expected to include activities such as thermal insulation of facades, roofs, and floors, as well as window replacement.

From the total financial resource, 1.6 billion levs are intended for renovation of multi-family residential buildings. In addition, programs are planned for building energy communities and purchasing energy-efficient cooking stoves. Tsanev, however, criticizes the lack of funding for other household appliances that would have a more significant effect on energy efficiency.

The transport component of the fund aims to improve communication links between small and large settlements. Independent experts from 15 non-governmental organizations have already proposed specific recommendations for optimizing the distribution mechanism.

According to available statistical data, about 1.8 million Bulgarian citizens are potentially threatened by energy poverty. This large-scale social problem requires a precise and fair approach to the distribution of financial resources.

Dragomir Tsanev concludes that although the overall direction of the planned measures is correct, there is a need for additional optimization and refinement of support criteria. The key challenge remains ensuring that the funds will reach the truly most vulnerable population groups.