The Energy Efficiency and Renewable Sources Fund would be transformed into the National Decarbonisation Fund

The Council of Ministers authorized the Minister of Energy to take the necessary actions in connection with the transformation of the Energy Efficiency and Renewable Sources Fund (EERSF) into the National Decarbonisation Fund (NDF), the Cabinet press office said.

Restructuring of EERSF into NDF is one of the main reforms in the “Green Bulgaria”, part of the National Recovery and Sustainability Plan. The creation of the NDF is a key financial scheme to support the implementation of the objectives of the Long-Term National Strategy to support the renewal of the national building stock of residential and non-residential buildings by 2050.

The restructuring of the Fund will lead to the establishment of an appropriate structure to act as a coordinating body for energy efficiency programmes, projects and activities. At the same time, the structures and capacities already built up in the sectoral ministries will be used and the need to create a new organisation, to build additional capacity and to increase the staff of the administration will be eliminated. The Fund will adapt financial instruments or structure additional ones, as the need is identified, drawing on the same possible sources and appropriate financing schemes, in order to dynamically address barriers to energy efficiency improvements.

The Energy Efficiency and Renewable Sources Fund was established by the Energy Efficiency Act (adopted by the Bulgarian Parliament in February 2004), as a legal entity independent from the state institutions. The Fund operates under the provisions of the Energy Efficiency Act, the Renewable Energy Act and the Donor Agreements and is not part of the consolidated state budget.