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Resilience and Recovery in Denmark and Estonia

Housing Europe analyses the investments planned at country level that could make a difference to the sector and citizens

27 September 2022 | Published in Economy

As a follow up to our Comparative analysis of last November on the Impact of the Recovery Plans on the social and affordable housing sector, 2 new country profiles are published each month. Now it is the turn of Denmark and Estonia. Let’s see the highlights of these Plans below.


The total cost of the recovery and resilience plan of Denmark is € 1 615 267 709. The country will benefit from €1.551 billion in grants. In total, €143 million will be provided to foster energy efficiency for households and industry as well as through energy renovations of public buildings.

The Danish plan supports massive investments in the green transition that are necessary to reach the target of lowering GHG emissions in Denmark by 70% by 2030.

A key reform initiative is the green tax reform. In addition, the plan contains dedicated components focusing on improving energy efficiency for households (€ 235 million), industry and public buildings, promoting sustainable transport solutions and providing funding for green research and development.

Relevant investments include

  • ‘Replacing Oil Burners and Gas Furnaces’ (€ 65 million) with electric heat pumps and district heating from renewable sources. The measure will provide subsidies to speed up the phasing out of oil burners and gas furnaces and to reduce the cost to consumers of the conversion to green heating.
  • ‘Energy renovations in public buildings’ (€ 40 million) will focus on energy renovations in regional and municipal buildings with the lowest energy performance certificate standards as well as buildings that are heated by oil burners and gas furnaces.
  • ‘Energy Efficiency in Households’ (€63 million) will ensure that residential buildings are renovated and energy efficient and to speed up transition from oil burners and gas furnaces to heat pumps. The measure shall target energy savings in private housing by supporting insulation, optimization of the operation of the building or replacement of heating by oil burners and gas furnaces with heat pumps.



The country accesses €969.3 million of grants from the RRF.

The Estonian Plan recognises the need to tackle the growing problem of old empty or only partially occupied apartment buildings in rural areas due to population decline as well as the energy poverty issue of home owners.

Therefore, Estonia puts forward a relevant reform: Promoting energy efficiency and integrated renovation (Reform 1). Here, two measures are planned and Kredex is responsible for developing the dedicated financial schemes:

  • Investment 1: Supporting the renovation of apartment buildings (€ 44.75 million).
  • Investment 2: Supporting the renovation of small residential buildings (€ 2.4 million from RRF).


Housing Investment Fund

In order to ensure adequate and sustainable reconstruction, a national fund will be developed with national, EU and private funds. The Housing Investment Fund will allow to ensure a continuity of funding (loans, guarantees) in regions where property values are low and where the ability of households to carry out reconstruction under market conditions is limited.

The Fund is going to support the energy efficiency upgrading of up to 8 400 apartment buildings over a 30-year period and the Fund is estimated to represent a €3 billion investment, with 2-3% interest rates for 30- to 30-year loans. Up to 20 % of ERDF resources for the period 2021-2027 will be dedicated to the Fund.


Finally, quite unique among the national Plans that Estonia dedicates an envelope of 95,6 million to the adaptation of homes to develop services to support living at home; to the provision of community-based service buildings for the elderly; the creation of community-based special care services as well as the creation of Integrated health and care centres. This budget will come from the EU Structural funds.[1]


Feel free to download the detailed country profiles for more details.


[1] Page 29, Estonian Plan, June 2021