Tartu, Estonia’s second-largest city, is set to receive a €25 million loan from the European Investment Bank to improve energy efficiency in public buildings and upgrade cycling and pedestrian routes.
The funding will support a city investment programme costing €51 million in total and running until 2030, the EIB announced in a release on Wednesday. It said the loan covers almost half of the programme.
Renovations will focus on municipal buildings, including schools and kindergartens, to make them more energy efficient, while bike paths, walkways and public spaces will be expanded and better connected, the bank added.
The programme will also be financed through European Union funds and the city’s own resources.
Climate-neutral target and earlier EIB loan
Tartu is part of the EU’s “Climate-Neutral and Smart Cities” initiative, which is intended to support cities working towards climate neutrality — cutting net greenhouse gas emissions to zero — by 2050, according to the EIB.
Tartu aims to become climate neutral by 2050 at the latest, and around three-quarters of the planned investments are projected to contribute to climate action.
“With EIB support, Tartu is investing in projects that improve people’s daily quality of life while advancing climate goals,” said Götz von Thadden, head of the EIB’s Tallinn office.
Tartu Mayor Urmas Klaas said the city has invested in recent years to make walking and cycling safer and more comfortable, and to improve the energy efficiency of public buildings.
The new financing follows a €20 million EIB loan provided to Tartu in 2019 for upgrades of schools, kindergartens and other educational facilities.
