Invitation

Workshop

Rethinking Municipal Finance:

Regional Finance Models for Energy Efficiency and Housing

Renovation/Retrofitting

V2025-04-07

6 May 2025

Vilnius, Lithuania

Taking place during the Cities Mission Conference 2025 at LITEXPO

Organisation and implementation:

Workshop partners:

In the framework of the funding programme:

European Environment Initiative (EURENI)

Background and Objectives

Europe is entering a decisive moment in the effort to decarbonise its building stock. The revised

Energy Performance of Buildings Directive (EPBD), adopted in 2024, sets out clear targets:

all new buildings must be zero-emission by 2030, and existing buildings must undergo deep

renovation. This comes alongside broader EU climate goals – a 55% cut in emissions by 2030

and climate neutrality by 2050, which place growing pressure on member states to deliver,

especially at the local level.

For the Baltic region, this presents a serious challenge. Much of the housing stock is outdated,

energy-inefficient, and over 75% privately owned, often with fragmented ownership

structures1. Renovation depends on mobilising millions of individual decisions, supported by

accessible finance and strong local coordination. Yet progress has been slow and held back by

funding limitations, capacity gaps, and disconnected efforts.

At the same time, Lithuania, Latvia, and Estonia share common ground: similar building

types, financing barriers, and the legacy of post-Soviet urban development. They also have

valuable experience to build on. From Tartu’s neighbourhood-scale retrofits, Latvia’s ALTUM

blended finance model, to Vilnius’ large-scale investment programme, the region has no

shortage of pilot projects, but these are still not sufficient.

This workshop starts from the belief that tackling this challenge together makes sense. Rather

than working in parallel, the Baltics could benefit from a coordinated regional approach. The

event will explore the idea of a regional finance model to scale the idea of “one-stop-shops”

that supports cities, streamlines access to funding, and complements national efforts without

causing fragmentation.

This workshop takes the position that the solution lies in coordinated regional action. Drawing

on common structural challenges and policy contexts, it proposes an exploration for a regional

financial model – a “one-stop-shop” mechanism that supports cities, aggregates demand,

streamlines access to funding, and complements national efforts without undermining local

autonomy.

Taking place during the Cities Mission Conference 2025 in Vilnius, and organised within the

Turnaround Money II project and NetZeroCities, the event brings together finance actors,

practitioners, cities, NGOs, and state-level stakeholders from across the Baltics. It aims to

define a shared set of criteria for a functional, inclusive, and non-fragmenting regional

1 See e.g. https://interreg-baltic.eu/project-posts/the-ownership-and-responsibilities-of-the-multi-apartment-

buildings-in-the-bsr-vary-a-lot-creating-different-challenges-and-need-for-support/

finance model – one that enables scale, accelerates delivery, and supports the implementation

of the EPBD.

This is the first in a series of national dialogues on better funding in the Baltic states (2025–

2027) focused on turning EU climate policy into real, local impact. By fostering collaboration

across borders, this workshop aims to move the region from promising pilots to shared, scalable

transformation.

Key questions:

1. What are the key financial barriers municipalities in Lithuania, Latvia, and Estonia

face in accelerating energy efficiency and renovation, and how could a coordinated

regional financing model help overcome them?

2. How can a regional “one-stop” mechanism support cities and residents – particularly

in the context of fragmented ownership and limited local capacity – without

duplicating or complicating national efforts?

3. What strategies can municipalities use to better engage private homeowners in multi-

apartment buildings, and how can financial institutions and public programmes

support trust, uptake, and collective decision-making?

4. What enabling conditions (regulatory, financial, and institutional) are needed to

unlock building renovation at scale, and how can regional collaboration strengthen

these frameworks?

5. What are the concrete next steps that workshop participants (cities, finance actors,

and institutions) can take to co-develop a regional finance model that accelerates

implementation of the EPBD and related climate goals?

Enclosed you will find a proposal for a workshop program and a list of potential participants.

Self-conception of the workshop

The workshop is organised in cooperation with NZC Mission and the project “Turnaround

money II - rethinking municipal finances”, which is funded by the German Environmental

ministry as part of the EURENI program.

The workshops will be held in close cooperation with municipalities, municipal companies

and associations in 2025.

The workshops should be characterized by an active exchange between key institutions and

provide a framework for the development of concrete solution ideas. Lectures and

presentations will therefore be kept to a minimum and the focus will be on direct, constructive

and professional exchange.

Draft program for the workshop on 06.05.2025

Time Agenda

11:00 Arrival

11:00-11:10

Opening by the organisers

• Moderation by Iryna Bakhcheva and Katia Alarcon, ICLEI Europe

11:10-11:45

Keynotes:

• Ministerial address – [tbd]

• Blending resources for building renovation: a case study on financing

smart retrofitting of Soviet-era apartments in the city of Riga –

[name], Riga Energy Agency [tbc]

• Learning from Europe: One-stop-shop experience in the building

sector – [name], [Bankers without Boundaries, tbc]

• A regional vision for accelerating building renovations

– Linda Zeilina, International Centre for Sustainable Finance

11:45-12:00

Transfer to break-out sessions

• Introduction to guiding questions and breakout groups by moderators

and workshop partners

12:00-13:30 Facilitated break-out groups

• 3 groups to tackle the overarching question on “enabling conditions

for unlocking building renovations at scale”

13:30-14:15 Lunch (covered by organisers)

14:15-15:15 Presentation of results from the break-out groups

15:15-15:25 Synthesis and next steps

15:25-15:30 Closing

Draft list of participants (alphabetical order of institutions)

Institution Field of

expertise/function

Name Country

ESTONIA

City of Tartu Estonia

City of Tartu Estonia

City of Tallinn Estonia

Ministry of Climate

Bankwatch (Estonia) Estonia

TalTech - Tallinn

University of

Technology

Estonia

TalTech - Tallinn

University of

Technology

Estonia

Rego (Association of

Local Municipalities)

Estonia

From interview

Environmental

Investment Centre

KIK

Estonia

From interview

Rohe Tiiger

Estonia

From interview

LATVIA

City of Riga Latvia

City of Lepaja Latvia

Bankwatch (Latvia) Latvia

ERRIN Latvia

Finance Latvia

Finance Association

of Latvia

Latvia

Bank Association of

Latvia

Latvia

Institution Field of

expertise/function

Name Country

Latvian Banking

Association • Home

page

Latvian Association

of Local and

Regional

Governments LPS -

LPS

Latvia

Ministry of Climate

and Energy

Sākumlapa | Klimata

un enerģētikas

ministrija

Latvia

LITHUANIA

City of Vilnius Lithuania

City of Vilnius Lithuania

City of Taurage Lithuania

ILTE – National

development Bank

(earlier INVEGA)

ILTE | ILTE

Lithuania

Ministry of Energy

and Environment.

Lithuania

Organisation und Leitung des Workshops

ICLEI Europe Head of Governance

Innovation

Niklas Mischkowski

ICLEI Europe Expert Governance

Innovation

Katia Alarcón

ICLEI Europe Expert Cities Mission

Task Group

Iryna Bakhcheva

ICLEI Europe Junior Expert Cities

Mission Task Group

Natalia

Lewandowska

Workshop

Rethinking Municipal Finance:

Regional Finance Models for Energy Efficiency and Housing

Renovation/Retrofitting

V2025-04-07

6 May 2025

Vilnius, Lithuania

Taking place during the Cities Mission Conference 2025 at LITEXPO

Organisation and implementation:

Workshop partners:

In the framework of the funding programme:

European Environment Initiative (EURENI)

Background and Objectives

Europe is entering a decisive moment in the effort to decarbonise its building stock. The revised

Energy Performance of Buildings Directive (EPBD), adopted in 2024, sets out clear targets:

all new buildings must be zero-emission by 2030, and existing buildings must undergo deep

renovation. This comes alongside broader EU climate goals – a 55% cut in emissions by 2030

and climate neutrality by 2050, which place growing pressure on member states to deliver,

especially at the local level.

For the Baltic region, this presents a serious challenge. Much of the housing stock is outdated,

energy-inefficient, and over 75% privately owned, often with fragmented ownership

structures1. Renovation depends on mobilising millions of individual decisions, supported by

accessible finance and strong local coordination. Yet progress has been slow and held back by

funding limitations, capacity gaps, and disconnected efforts.

At the same time, Lithuania, Latvia, and Estonia share common ground: similar building

types, financing barriers, and the legacy of post-Soviet urban development. They also have

valuable experience to build on. From Tartu’s neighbourhood-scale retrofits, Latvia’s ALTUM

blended finance model, to Vilnius’ large-scale investment programme, the region has no

shortage of pilot projects, but these are still not sufficient.

This workshop starts from the belief that tackling this challenge together makes sense. Rather

than working in parallel, the Baltics could benefit from a coordinated regional approach. The

event will explore the idea of a regional finance model to scale the idea of “one-stop-shops”

that supports cities, streamlines access to funding, and complements national efforts without

causing fragmentation.

This workshop takes the position that the solution lies in coordinated regional action. Drawing

on common structural challenges and policy contexts, it proposes an exploration for a regional

financial model – a “one-stop-shop” mechanism that supports cities, aggregates demand,

streamlines access to funding, and complements national efforts without undermining local

autonomy.

Taking place during the Cities Mission Conference 2025 in Vilnius, and organised within the

Turnaround Money II project and NetZeroCities, the event brings together finance actors,

practitioners, cities, NGOs, and state-level stakeholders from across the Baltics. It aims to

define a shared set of criteria for a functional, inclusive, and non-fragmenting regional

1 See e.g. https://interreg-baltic.eu/project-posts/the-ownership-and-responsibilities-of-the-multi-apartment-

buildings-in-the-bsr-vary-a-lot-creating-different-challenges-and-need-for-support/

finance model – one that enables scale, accelerates delivery, and supports the implementation

of the EPBD.

This is the first in a series of national dialogues on better funding in the Baltic states (2025–

2027) focused on turning EU climate policy into real, local impact. By fostering collaboration

across borders, this workshop aims to move the region from promising pilots to shared, scalable

transformation.

Key questions:

1. What are the key financial barriers municipalities in Lithuania, Latvia, and Estonia

face in accelerating energy efficiency and renovation, and how could a coordinated

regional financing model help overcome them?

2. How can a regional “one-stop” mechanism support cities and residents – particularly

in the context of fragmented ownership and limited local capacity – without

duplicating or complicating national efforts?

3. What strategies can municipalities use to better engage private homeowners in multi-

apartment buildings, and how can financial institutions and public programmes

support trust, uptake, and collective decision-making?

4. What enabling conditions (regulatory, financial, and institutional) are needed to

unlock building renovation at scale, and how can regional collaboration strengthen

these frameworks?

5. What are the concrete next steps that workshop participants (cities, finance actors,

and institutions) can take to co-develop a regional finance model that accelerates

implementation of the EPBD and related climate goals?

Enclosed you will find a proposal for a workshop program and a list of potential participants.

Self-conception of the workshop

The workshop is organised in cooperation with NZC Mission and the project “Turnaround

money II - rethinking municipal finances”, which is funded by the German Environmental

ministry as part of the EURENI program.

The workshops will be held in close cooperation with municipalities, municipal companies

and associations in 2025.

The workshops should be characterized by an active exchange between key institutions and

provide a framework for the development of concrete solution ideas. Lectures and

presentations will therefore be kept to a minimum and the focus will be on direct, constructive

and professional exchange.

Draft program for the workshop on 06.05.2025

Time Agenda

11:00 Arrival

11:00-11:10

Opening by the organisers

• Moderation by Iryna Bakhcheva and Katia Alarcon, ICLEI Europe

11:10-11:45

Keynotes:

• Ministerial address – [tbd]

• Blending resources for building renovation: a case study on financing

smart retrofitting of Soviet-era apartments in the city of Riga –

[name], Riga Energy Agency [tbc]

• Learning from Europe: One-stop-shop experience in the building

sector – [name], [Bankers without Boundaries, tbc]

• A regional vision for accelerating building renovations

– Linda Zeilina, International Centre for Sustainable Finance

11:45-12:00

Transfer to break-out sessions

• Introduction to guiding questions and breakout groups by moderators

and workshop partners

12:00-13:30 Facilitated break-out groups

• 3 groups to tackle the overarching question on “enabling conditions

for unlocking building renovations at scale”

13:30-14:15 Lunch (covered by organisers)

14:15-15:15 Presentation of results from the break-out groups

15:15-15:25 Synthesis and next steps

15:25-15:30 Closing

Draft list of participants (alphabetical order of institutions)

Institution Field of

expertise/function

Name Country

ESTONIA

City of Tartu Estonia

City of Tartu Estonia

City of Tallinn Estonia

Ministry of Climate

Bankwatch (Estonia) Estonia

TalTech - Tallinn

University of

Technology

Estonia

TalTech - Tallinn

University of

Technology

Estonia

Rego (Association of

Local Municipalities)

Estonia

From interview

Environmental

Investment Centre

KIK

Estonia

From interview

Rohe Tiiger

Estonia

From interview

LATVIA

City of Riga Latvia

City of Lepaja Latvia

Bankwatch (Latvia) Latvia

ERRIN Latvia

Finance Latvia

Finance Association

of Latvia

Latvia

Bank Association of

Latvia

Latvia

Institution Field of

expertise/function

Name Country

Latvian Banking

Association • Home

page

Latvian Association

of Local and

Regional

Governments LPS -

LPS

Latvia

Ministry of Climate

and Energy

Sākumlapa | Klimata

un enerģētikas

ministrija

Latvia

LITHUANIA

City of Vilnius Lithuania

City of Vilnius Lithuania

City of Taurage Lithuania

ILTE – National

development Bank

(earlier INVEGA)

ILTE | ILTE

Lithuania

Ministry of Energy

and Environment.

Lithuania

Organisation und Leitung des Workshops

ICLEI Europe Head of Governance

Innovation

Niklas Mischkowski

ICLEI Europe Expert Governance

Innovation

Katia Alarcón

ICLEI Europe Expert Cities Mission

Task Group

Iryna Bakhcheva

ICLEI Europe Junior Expert Cities

Mission Task Group

Natalia

Lewandowska