Financial instrument for transition to clean energy FLAG-FICET

On May 21, 2025, the second practical seminar dedicated to clean energy transition projects for local authorities was held in Stara Zagora.
The event was part of the information and training campaign under the FLAG-FICET project, funded by the LIFE Programme, and was organized by the FLAG Fund at the “Zachary Knyazheski” Regional Library in Stara Zagora. The seminar brought together mayors, deputy mayors, and municipal experts from Southern Bulgaria.

Nadya Dankinova, Executive Director of the FLAG Fund, welcomed the participants and shared that for nearly 17 years the Fund has been working in support of local authorities to implement their investment projects and to develop local and regional infrastructure by offering financial instruments and products that are necessary and effective in supporting municipal investments.
“Together we have achieved a lot; we have shown that sustainable, well-functioning public enterprises are possible, and that municipalities are indeed the backbone of Bulgaria’s development,” concluded Nadya Dankinova.

“The definition of our beautiful city as the greenest in Bulgaria closely aligns with the theme of today’s forum – the clean energy transition of local authorities. I can confidently say we are among the pioneers in working with the FLAG Fund and the Fund for Sustainable Cities,” stated Stara Zagora’s Deputy Mayor for Finance, Budget and Economy, Svetoslav Kolev, in his opening address. He commended the teams of both funds for their well-coordinated joint work and the personal commitment of their experts, which is crucial throughout the entire process.

In his presentation, Kolev gave a brief overview of the clean energy-related projects financed by FLAG, emphasizing that “Our main objective over the years has been to improve infrastructure, develop sustainable green urban transport, and enhance the energy capacity of administrative, educational, and social buildings.”
Stara Zagora is among the first municipalities to receive technical assistance under FLAG-FICET and complementary financing from FLAG for the implementation of a total of seven energy efficiency building projects, partially funded by grants from the Recovery and Resilience Mechanism and the National Trust EcoFund (NTEF).

Yuliya Karadzhova, Director of the “Lending and Monitoring” Directorate at FLAG, presented the various financing mechanisms available to municipalities and their companies with FLAG’s support. The focus was placed on the FLAG-FICET financial instrument, energy efficiency and clean energy transition projects, and the benefits of technical assistance and complementary financial mechanisms beyond grants.

Assoc. Prof. Yana Kirilova from Club “Economics 2000” presented the opportunities for technical assistance under FLAG-FICET in the four priority areas outlined in the Second Call for Proposals, which has a submission deadline of June 30, 2025.

Strong interest was sparked by the presentation of Dr. Dusho Gavazov, Mayor of the Municipality of Maglizh, who showcased projects financed by FLAG, focusing on the renovation of the historic Mineral Bath Complex in the village of Yagoda, originally designed in the 1920s by renowned Stara Zagora architect Hristo Dimov. Since reopening in 2022, the mineral bath has welcomed 166,200 visitors, with increasing interest from both Bulgarian and foreign tourists, stimulating infrastructure improvement, the growth of the spa and balneotherapy sector, and local business development.
The new buildings and facilities of the bath employ energy-saving technologies – thermal insulation, LED lighting, and temperature control systems. The natural temperature of the mineral water is used to heat rooms and pools, reducing the need for external energy sources.
The mayor expressed heartfelt gratitude to the FLAG team for their trust, support, and professionalism in implementing Maglizh Municipality’s investments.

In the second panel of the event, Angelina Boneva, former Deputy Minister of Regional Development and Public Works, spoke about the challenges of structuring the Territorial Just Transition Plans for the regions of Stara Zagora, Kyustendil, and Pernik, and the available opportunities for grant support under the 2021–2027 Programme for the Development of Regions (PDR), funded by the Just Transition Fund (JTF).

Prof. Daniela Bobeva from the Institute of Economic Studies at the Bulgarian Academy of Sciences focused on the recent changes in EU-level Green Transition policy, emphasizing a more pragmatic approach in achieving the ambitious goals set by the European Green Deal.

Thea Turlakova and Hristo Hristov from the Stara Zagora Regional Economic Development Agency (REDA) presented the SITRANS Project – Supporting Just Transitions in Coal and Carbon-Intensive Regions, funded by the LIFE Clean Energy Transition Programme (LIFE21-CET-COALREGIONS) of the European Commission. The project is in its final phase and paves the way for the development of new policies tailored to regional specificities and needs.

Assoc. Prof. Dochka Velkova from Club "Economics 2000" introduced the Social Climate Fund and the opportunities it offers to Bulgarian municipalities to implement projects for a socially just transition to climate neutrality.

The information and training campaign under the FLAG-FICET project, funded by the LIFE Programme, aims to raise awareness among public authorities about the benefits of clean energy projects and to overcome one of the main barriers to their broader implementation.