As a follow up to our Comparative analysis 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 Latvia and Lithuania. Let’s see the highlights of these Plans below:
Overall, the Latvian RRP includes measures worth €1.82 billion (or 5% of domestic GDP) of which € 1.64 billion is guaranteed, while the rest will be calculated in 2023 based in the economic situation in the EU countries.
37 % of the budget will go for the climate objective (including transport, energy efficiency and adaptation measures) 10% for health sector, 20 % reducing inequality (especially from energy poverty perspective, where there is a good possibility to combine different measures).
In this component, in total €248 million (46% of investments) will target energy efficiency in multi-apartment buildings (€ 36.63 million), central government, historical buildings (€ 36.63 million) municipal buildings (€ 29.3 million) and the business sector (€ 120,6 million being the largest recipient of funds).
The recovery and resilience plan includes measures with a focus on the improvement of energy efficiency in multiapartment and public buildings. It is known from the Plan that 182 multifamily buildings will be renovated, which will not be enough to reach national objectives set for 2030.
The recovery and resilience plan also focuses on climate change adaptation thanks to investment in flood prevention and fire prevention which should directly contribute to the objective of adapting to the consequences of climate change.
The Reduction of inequalities component represents € 370 million (20% of the total allocation) that will finance the provision of 700 new affordable housing, as well as measures providing accessibility to private homes for 259 persons with disabilities and to 63 public buildings and build long-term care facilities for 852 elderly persons.
Lithuania benefits from €2,225 billion grants from EU.
According to the Ministry of Environment, Lithuania plans to renovate around 9,500 apartment buildings over the period of 2021-2030. This will require an investment of €3,3 billion.
In order to boost renovation, Lithuania will dedicate € 550 million in total: from the Recovery and Resilience Facility (€ 220 million) and the EU structural funds (€ 330 million). The objective is to increase energy efficiency and launch a wave of renovation in Lithuania that will ensure renovation of 1 000 apartment buildings per year until 2030.
In order to solve the energy poverty issue, the Plan aims to develop the offshore wind energy. A new law will consolidate the support model for offshore wind and its principles. In line with other EU countries, it provides for the financing of wind energy development through the price of a contract for the purchase and sale of electricity from renewable energy sources.
Please download the country profiles for more details.