In 2026 Bulgarian banks applied the EU sustainable-finance rulebook, with sustainability reporting transposed in 2024 and the ESG risk rules for banks transposed in July 2026. The ECB has supervised the significant banks directly since October 2020, under close cooperation with the BNB until the end of 2025 and within the euro area since Bulgaria adopted the euro on 1 January 2026. ECB statistics recorded no green, social or sustainability bond issued by a Bulgarian resident up to September 2026. For farming, the CAP Strategic Plan 2023–2027, as amended in February 2026, reserved EUR 1.03 billion of EU funds for eco-schemes and EUR 558 million for environmental and climate objectives in rural development.
7.1
What is in force
EU rules apply directly. The Taxonomy Regulation of June 2020 defines environmentally sustainable activities against six environmental objectives, and its disclosure rules have applied since January 20221. The Climate Delegated Act of June 2021 deferred technical screening criteria for agriculture in view of the CAP negotiations, and none of the delegated acts adopted up to July 2025 sets criteria for growing crops or raising livestock (own reading)2. Since January 2026 banks may leave out of the taxonomy assessment on-balance-sheet assets whose use of proceeds is known where these together make up less than 10% of such assets in the Green Asset Ratio denominator3. The Sustainable Finance Disclosure Regulation has applied since March 2021 and the voluntary European Green Bond Standard since December 202445.
Reporting obligations were narrowed in 2025 and 2026. Bulgaria transposed the Corporate Sustainability Reporting Directive through amendments to the Accountancy Act published in August 20246. After the EU postponed the later reporting waves in April 2025, an amendment in force from 1 January 2026 set the first reporting periods in the Act at 2026, 2027 and 202878. The Omnibus I Directive of February 2026 limits mandatory reporting to undertakings with more than 1,000 employees and more than EUR 450 million of turnover, and Member States are to transpose it by 19 March 20279.
Climate risk is part of bank supervision. The ECB supervised significant banks in Bulgaria under close cooperation with the BNB from 1 October 2020 to 31 December 20251011, and since euro adoption on 1 January 2026 Bulgaria has taken part in the Single Supervisory Mechanism as a euro-area Member State1112. The ECB guide of November 2020 sets thirteen expectations for managing climate-related and environmental risks13. On the ECB list published in August 2026 (cut-off date 1 July 2026) four Bulgarian banks were significant entities under direct ECB supervision, namely DSK Bank, UniCredit Bulbank, United Bulgarian Bank and Eurobank Bulgaria14. EU banking rules adopted in May 2024 require banks to manage ESG risks over horizons of at least ten years and to disclose them, and Bulgaria transposed these rules into the Credit Institutions Act in July 2026151617. The BNB decided in May 2025 to apply the EBA guidelines on ESG risk management from 11 January 202618. It has also decided to apply the EBA guidelines on environmental scenario analysis and, in 2026, the joint ESAs guidelines on ESG stress testing of 8 January 2026, both from 1 January 20271920. The BNB was not among the 152 members of the Network for Greening the Financial System listed in August 202621.
Green bonds and public funds. ECB securities statistics show no green, social, sustainability or sustainability-linked debt securities issued by Bulgarian residents, the government included, from December 2020 to September 2026, while residents of Romania had EUR 6.46 billion of green debt securities outstanding at the end of 202522. Bulgaria's Recovery and Resilience Plan provides EUR 6.17 billion of grants (about US$7.16 billion at the ECB rate of 31 August 2026, own calculation), with 57.5% for climate objectives2324. Its fund for the technological and ecological transition of agriculture (investment C6.I1) had a total budget of BGN 391.7 million in the ministry's application conditions of April 2026 (EUR 200.3 million at 1.95583 leva per euro, own calculation), with grants of 50% of eligible costs and an expected 1,700 farms supported2526. By 31 July 2026 Bulgaria had received 68% of its RRF allocation27. The Modernisation Fund had confirmed EUR 216.1 million for eight Bulgarian energy investments by October 2025 (own calculation), none of them in agriculture28.
The CAP green architecture. Bulgaria's CAP Strategic Plan 2023–2027, approved on 7 December 2022 and amended for the fourth time on 27 February 2026, reserves EUR 1.03 billion of EU funds for eco-schemes (about US$1.19 billion, own calculation), equal to 25% of direct payments, and EUR 558 million, 40% of rural development funds, for environmental and climate objectives293024. The plan envisages organic support for 136,610 hectares and a pesticide-reduction eco-scheme on about 1,679,400 hectares30. The organic area reached 198,051 hectares in 2024, 3.95% of utilised agricultural area31. Development-bank credit lines with a climate component include a EUR 175 million EIB loan to the Bulgarian Development Bank signed in July 2023 and a EUR 139.7 million EIB guarantee for Allianz Bank Bulgaria signed in March 2026 that covers loans in industry, agriculture and services3233.
Green debt securities issued by residents of selected central, eastern and south-eastern EU member states
Amount outstanding at nominal value, end of December 2025, EUR million
Green debt securities outstanding (EUR m)
Poland
12,166.4
Hungary
11,233.4
Greece
7,546.4
Romania
6,460.6
Czechia
5,244.4
Slovakia
2,714
Lithuania
1,120.1
Latvia
726.2
Slovenia
570
Cyprus
427.4
Croatia
417.6
Estonia
411.1
Bulgaria
0
Source: ECB — ECB securities issues statistics (CSEC), debt securities flagged as green, all issuing sectors, all maturities and currencies, issuer residence, closing stocks at nominal value in EUR million. December 2025 values carry status A (normal). The ECB records zero green, social, sustainability and sustainability-linked debt securities issued by Bulgarian residents, including the government, at every month-end from December 2020 to September 2026 (September 2026 provisional)22. The euro is the source currency, so no conversion is applied.
EU funding reserved in Bulgaria's CAP Strategic Plan 2023–2027
EU funding reserved for selected objectives, plan as amended up to February 2026, EUR million
EU funding reserved (EUR m)
Eco-schemes under direct payments
1,026.6
Environmental and climate objectives under rural development
558.2
Complementary redistributive income support
470.8
Young farmers
125.1
LEADER
113.9
Source: European Commission — Planned allocations for 2023–2027, not payments. Eco-schemes equal 25% of the direct payments allocation in Annex IX of Regulation (EU) 2021/2115 and the environmental and climate reservation equals 40% of the rural development allocation in Annex XI. Total EU funding in the plan is EUR 5,640 million (direct payments EUR 4,119 million, sectoral support EUR 109 million, rural development EUR 1,412 million), with EUR 2,086 million of national co-financing. The fourth amendment of the plan was approved on 27 February 20263029.
Climate Change Mitigation ActState Gazette No. 22 of 11 March 2014Adopted 26 Feb 2014, State Gazette No. 22 of 11 Mar 2014, in force on publication
Закон за ограничаване изменението на климата
The Act was adopted by the 42nd National Assembly on 26 February 2014 and entered into force on its publication in State Gazette No. 22 of 11 March 201437. It governs national climate policy, the mechanisms under the UN Framework Convention, the Kyoto Protocol and the Paris Agreement, the National Green Investment Scheme, the greenhouse gas inventory and the EU emissions trading system, and names the Minister of Agriculture and Food among the ministers who implement climate policy34. Article 2a, added in October 2025, sets a long-term national goal of climate neutrality and net-zero greenhouse gas emissions by 205034. Article 57a finances Bulgaria's 5.84% share of the Modernisation Fund for 2021–2030 (and its 4.9% share for 2024–2030) from emission allowance auctions and directs at least 80% (90% for the 2024–2030 share) of these revenues to priority investments34.
Recent changes: Amended 23 times up to State Gazette No. 16 of 10 February 2026, including No. 25 of 20 March 2020 (Modernisation Fund), No. 81 of 3 October 2025 (climate neutrality goal and a long-term national strategy for climate change mitigation) and No. 16 of 2026, as listed in the consolidated text of the Ministry of Environment and Water34. It was amended twice more in June 2026, by § 69 of the Act on Counteracting Corruption among Persons Holding Public Office, State Gazette No. 51 of 5 June 2026 (adopted 29 May 2026)38, and last by § 35 of the act amending the Investment Promotion Act, State Gazette No. 55 of 16 June 2026 (adopted 4 June 2026)39.
Accountancy Act amendments on sustainability reportingState Gazette No. 72 of 27 August 2024Adopted 14 August 2024, published in State Gazette No. 72 of 27 August 2024, in force from 6 July 2024
Закон за изменение и допълнение на Закона за счетоводството
The amending Act transposes the Corporate Sustainability Reporting Directive into the Accountancy Act. Undertakings in scope include a sustainability report in their management report, which is subject to an assurance engagement6. As adopted, the first reporting periods were 2024 for large public-interest entities with more than 500 employees, 2025 for other large undertakings and 2026 for listed small and medium-sized undertakings and small and non-complex credit institutions6.
Recent changes: The Act amending the Accountancy Act, State Gazette No. 17 of 28 February 2025 (adopted 19 February 2025, in force on publication), moved the first reporting periods to 2025, 2026 and 202741. The Act amending the VAT Act (adopted 17 December 2025, State Gazette No. 115 of 30 December 2025, in force 1 January 2026) transposed the stop-the-clock Directive (EU) 2025/794 and replaced the first reporting periods with 2026, 2027 and 20288. The Omnibus I Directive (EU) 2026/470 is to be transposed by 19 March 20279.
Credit Institutions Act amendments on ESG risksState Gazette No. 67 of 24 July 2026Adopted 9 July 2026, published in State Gazette No. 67 of 24 July 2026, with some provisions in force from 11 July 2026 and 11 January 2027
Закон за изменение и допълнение на Закона за кредитните институции
The Act transposes Directive (EU) 2024/1619 (CRD VI). It defines environmental, social and governance (ESG) risk by reference to the Capital Requirements Regulation, requires banks to cover ESG risks over the short, medium and long term in their risk management and internal capital assessment and to train board members on ESG risks, and empowers the BNB to require a bank to reduce risks arising from ESG factors, including transition trends under the national energy and climate plan17.
EU Taxonomy RegulationRegulation (EU) 2020/852Adopted 18 June 2020, published OJ L 198 of 22 June 2020, in force 12 July 2020, disclosures apply from 1 January 2022 (climate objectives) and 1 January 2023 (other objectives)
The Regulation defines when an economic activity is environmentally sustainable, by reference to six environmental objectives, and requires undertakings subject to non-financial or sustainability reporting, banks included, to disclose the taxonomy alignment of their activities1. The Climate Delegated Act of 4 June 2021 deferred technical screening criteria for agriculture in view of the CAP negotiations, and none of the delegated acts adopted up to July 2025 sets criteria for crop or livestock production (own reading). Forestry, environmental restoration and solar photovoltaic electricity generation are covered by other sections of the delegated act2.
Recent changes: Supplemented by Delegated Regulations (EU) 2021/2139, 2023/2485 and 2023/2486. Delegated Regulation (EU) 2026/73, applying from 1 January 2026, lets credit institutions omit the taxonomy assessment of on-balance-sheet assets whose use of proceeds is known where their cumulative value is below 10% of such assets in the Green Asset Ratio denominator23.
Sustainable Finance Disclosure RegulationRegulation (EU) 2019/2088Adopted 27 November 2019, published OJ L 317 of 9 December 2019, applies from 10 March 2021
Financial market participants and financial advisers, including credit institutions that provide portfolio management, publish how they integrate sustainability risks and whether they consider the principal adverse impacts of investment decisions on sustainability factors, and disclose the characteristics of products promoted as sustainable4.
Corporate Sustainability Reporting DirectiveDirective (EU) 2022/2464Adopted 14 December 2022, published OJ L 322 of 16 December 2022, in force 5 January 2023, transposition by 6 July 2024
The Directive replaced non-financial reporting with sustainability reporting under European standards and extended it to all large undertakings and listed SMEs, with phased first reporting years from 202435. Bulgaria transposed it through the Accountancy Act in August 20246.
Recent changes: Directive (EU) 2025/794 of 14 April 2025 (in force 17 April 2025) postponed the second and third waves to financial years starting on or after 1 January 2027 and 1 January 20287. Directive (EU) 2026/470 of 24 February 2026 narrowed the scope9.
Omnibus I simplification of sustainability reporting and due diligenceDirective (EU) 2026/470Adopted 24 February 2026, published OJ L of 26 February 2026, in force 18 March 2026, transposition by 19 March 2027
Mandatory sustainability reporting is limited to undertakings and groups with more than 1,000 employees and a net turnover above EUR 450 million. Reporting undertakings may not require from value-chain undertakings with up to 1,000 employees more information than the voluntary standard, although information gathered for other purposes such as risk management is not affected. Due diligence obligations apply to companies with more than 5,000 employees and EUR 1.5 billion turnover9.
European Green Bond StandardRegulation (EU) 2023/2631Adopted 22 November 2023, published OJ L of 30 November 2023, in force 20 December 2023, applies from 21 December 2024
The Regulation creates a voluntary 'European Green Bond' label. At least 85% of proceeds must finance taxonomy-aligned activities, and up to 15% may go to activities that meet the taxonomy requirements other than the technical screening criteria. External reviewers are registered with and supervised by ESMA5. ECB statistics recorded no green bond issued by a Bulgarian resident up to September 202622.
EU banking package on ESG risks (CRR III and CRD VI)Regulation (EU) 2024/1623 and Directive (EU) 2024/1619Adopted 31 May 2024, published OJ L of 19 June 2024, CRR III applies from 1 January 2025, CRD VI to be applied from 11 January 2026
CRD VI requires banks to have strategies, policies, processes and systems to identify, measure, manage and monitor ESG risks over horizons of at least ten years, to test their resilience starting with climate factors and to prepare plans with quantifiable targets, which supervisors assess in the supervisory review15. CRR III extends ESG risk disclosure to all institutions, annually for small and non-complex non-listed banks16. Bulgaria transposed CRD VI in July 202617.
EBA Guidelines on the management of ESG risksEBA/GL/2025/01Final report 8 January 2025, published 9 January 2025, apply from 11 January 2026 (small and non-complex institutions at the latest from 11 January 2027)
The guidelines set minimum standards for identifying, measuring and monitoring ESG risks and for transition plans. Institutions are to assess exposures to sectors that contribute highly to climate change, defined as NACE sections A to H and L, which include agriculture36. By Decision No. 245 of 22 May 2025 the BNB Governing Council decided to comply from 11 January 2026, and Bulgarian banks apply EBA guidelines that the BNB has adopted18. The BNB has also decided to apply the EBA guidelines on environmental scenario analysis and, in 2026, the joint ESAs guidelines on ESG stress testing of 8 January 2026, both from 1 January 20271920.
ECB supervision and Guide on climate-related and environmental risksECB Decision (EU) 2020/1015 (ECB/2020/30) and ECB Guide of November 2020Close cooperation from 1 October 2020 to 31 December 2025, euro-area participation in the SSM from 1 January 2026, guide published November 2020
From 1 October 2020 to 31 December 2025 the ECB supervised significant banks established in Bulgaria under close cooperation with the BNB1011. Since euro adoption on 1 January 2026 Bulgaria has taken part in the Single Supervisory Mechanism as a euro-area Member State1112. On the ECB list published in August 2026 (cut-off date 1 July 2026) DSK Bank, UniCredit Bulbank, United Bulgarian Bank and Eurobank Bulgaria were significant entities, while the Bulgarian Development Bank and Central Cooperative Bank were less significant institutions supervised by the BNB14. The ECB guide sets thirteen expectations on how significant banks integrate climate-related and environmental risks into strategy, governance, risk management and disclosure, and cites droughts and floods affecting agricultural production as a physical risk13. Bulgaria adopted the euro on 1 January 202626.
Source: MOEW · EUR-Lex · ECB · State Gazette · EBA — Dates are adoption or publication dates as printed in the Official Journal of the EU, the State Gazette or the issuing institution's document. EU regulations apply directly in Bulgaria, directives through national acts.
Organic farming area
Fully converted and under conversion, hectares, 2012–2024
Year
Fully converted (ha)
Under conversion (ha)
2012
11,974
27,164
2013
15,161
41,126
2014
15,170
32,744
2015
21,539
97,013
2016
36,137
124,484
2017
48,453
88,164
2018
84,150
44,689
2019
95,555
22,225
2020
96,476
19,776
2021
70,424
15,887
2022
60,460
49,981
2023
60,236
87,562
2024
78,624
119,427
Source: Eurostat organic area — Eurostat (org_cropar), utilised agricultural area excluding kitchen gardens. The total was 198,051 ha in 2024, 3.95% of the utilised agricultural area, the same as MAF reports from the control bodies' data43.
Modernisation Fund investments confirmed for Bulgaria
Confirmed or disbursed amount by year of confirmation, EUR million, 2023–2025
Year of confirmation
Confirmed or disbursed amount (EUR m)
2023
100.9
2024
65.2
2025
50
Source: Modernisation Fund · European Commission · MOEW — Sum of the eight Bulgarian investments listed by the Modernisation Fund (own calculation), all in electricity networks, district heating and combined heat and power, total EUR 216.1 million. None of them is in agriculture, although energy efficiency in agriculture is an eligible priority area28. The Commission reported EUR 50 million disbursed to Bulgaria in 202544. Bulgaria's share of the Fund for 2021–2030 is 5.84% under Article 57a of the Climate Change Mitigation Act34.
EU green funding for Bulgaria relevant to agriculture, allocations and payments
Instrument
Allocation or reservation
Paid or confirmed
Reference date
Note
Recovery and Resilience Facility, whole plan
EUR 6,174 million of grants, 57.5% for climate objectives
68% of EUR 6.17 billion received
31 July 2026
Fourth payment of EUR 896 million, three milestones and targets outstanding2327
RRP investment C6.I1, Fund for the technological and ecological transition of agriculture
BGN 391.7 million (about EUR 200.3 million at 1.95583, own calculation)
Not published in the sources checked
20 April 2026
50% grants for 1,700 farms, procedure BG-RRP-6.004 BGN 378.7 million excluding VAT in the April 2026 application conditions25
CAP Strategic Plan, eco-schemes
EUR 1,026.6 million of EU funding, 25% of direct payments
Not published in the sources checked
February 2026 version
Pesticide-reduction eco-scheme on about 1,679,400 ha30
CAP Strategic Plan, rural development environment and climate
EUR 558.2 million of EU funding, 40% of rural development
5.84% share of the Fund for 2021–2030 (and a 4.9% share for 2024–2030)
EUR 216.1 million confirmed for eight investments (own calculation)
6 October 2025 (latest confirmation)
Energy networks and heating, none in agriculture, EUR 50 million disbursed in 2025342844
Source: European Commission · MAF · MOEW · Modernisation Fund — Allocations are planned amounts and are shown separately from payments. Amounts in euro as published by the European Commission and the Modernisation Fund. The Ministry of Agriculture and Food states the RRP fund budget in leva in its April 2026 document, and the euro figure is converted at the fixed rate of 1.95583 leva per euro (own calculation)26.
Firms and climate change in Bulgaria and the EU
Share of firms, %, EIB Investment Survey 2025
Bulgaria (%)
EU (%)
Experienced physical climate risk
56
68
Building resilience to physical risk
47
53
See the net-zero transition as a risk
38
36
See the net-zero transition as an opportunity
10
27
Performed an energy audit
33
56
Set and monitor GHG emission targets
25
47
Source: EIB — Telephone survey of 486 Bulgarian firms in manufacturing, construction, services and infrastructure, April to July 2025. The sectors listed do not include agriculture (own reading)45.
7.2
What it means for agricultural lenders
No taxonomy criteria for crop and livestock farming by 2025
The Climate Delegated Act of June 2021 deferred criteria for agriculture, and none of the delegated acts adopted up to July 2025 sets them for crop or livestock production (own reading). Forestry, ecosystem restoration and solar photovoltaic generation do have criteria23.
Agriculture among the sectors banks assess under the EBA guidelines from 2026
The EBA guidelines that the BNB applies from 11 January 2026 ask banks to assess exposures to NACE sections A to H and L, which include agriculture, and apply to small and non-complex banks at the latest from 11 January 20273618.
Reporting thresholds raised to 1,000 employees in 2026
Under the Omnibus I Directive of February 2026, mandatory sustainability reporting is limited to undertakings with more than 1,000 employees and EUR 450 million of turnover, and reporting firms may not demand more than the voluntary standard from value-chain firms with up to 1,000 employees. The limit does not cover information that banks collect for risk management9.
RRP grants of 50% of eligible costs in the April 2026 conditions
Under its April 2026 conditions, the agriculture fund of the Recovery and Resilience Plan pays 50% of eligible costs of BGN 30,000 to BGN 1,000,000 per project, which leaves the other half to the farmer's own funds or credit (own reading)25.
Climate quotas in development-bank credit lines
The EIB's EUR 175 million loan to the Bulgarian Development Bank, signed in July 2023, foresees that at least 20% of the loans go to climate action and environmental sustainability projects, and the 2026 guarantee for Allianz Bank Bulgaria has a 25% climate action share and aims to increase finance for agriculture among other sectors. The EBRD lent EUR 60 million to ProCredit Bank Bulgaria in 2024 for on-lending to green projects in Bulgaria and Greece323346.
No domestic green bond issued up to September 2026
Bulgarian residents had issued no green, social or sustainability bonds by September 2026 according to the ECB, although the European Green Bond label has been available since December 2024225.
Green credit lines and guarantees for Bulgarian banks
Year signed or announced
Financier
Bank or intermediary
Amount
Green or agricultural content
2023
EIB
Bulgarian Development Bank
EUR 175.0 million (signed 11 July 2023)
At least 20% of loans for climate action and environmental sustainability, SMEs and Mid-Caps32
2024
EBRD
ProCredit Bank Bulgaria
EUR 60 million (announced 12 January 2024)
On-lending for green projects in Bulgaria and Greece, including energy efficiency and climate resilience46
2026
EIB
Allianz Bank Bulgaria
EUR 139.7 million guarantee (signed 31 March 2026)
SME and Mid-Cap portfolio in industry, agriculture and services, 25% climate action share33
Not signed
EIB
Eurobank Bulgaria (Postbank)
About EUR 100 million proposed
Under appraisal since 3 March 2025 and not signed by 20 October 2026, 20% for climate action47
Listed in October 2026
Bulgarian Development Bank
Commercial banks
Bridge loans up to BGN 22 thousand (EUR 11.2 thousand) for photovoltaic systems
Guarantee for household renewable energy loans pending grants from the Ministry of Energy48
Source: EIB · EBRD · BDB — Signed amounts as shown on the EIB project pages and in the EBRD announcement. The EIB Group financed EUR 646 million in Bulgaria in 2025, about a third of it for climate action and environmental sustainability49. Proposed operations are shown as not signed.
AI-assisted content, human-reviewed: This page was generated with the assistance of artificial intelligence and reviewed by a human editor. (last review: October 2026) Despite review, errors or outdated values may remain; please verify critical figures against the linked primary sources before relying on them. Nothing here is investment, legal or financial advice.
