Considering the trend towards climate neutrality and energy efficiency at the global level as well as the problem of high energy poverty at the national level, the issue of housing renovation was inevitable for Latvia in 2023. The main objective of the study is to analyse the situation in Latvia, its problematic aspects and opportunities for the government, as well as to propose possible methods for solving the problem of low rates of housing renovation in Latvia. The main methods used were PESTLE analysis to identify problems and cluster analysis to compare financial opportunities in each country. The main results of the study are the conclusion that the financial aspect of renovation in Latvia is at a satisfactory level and is not the main reason for the unpopularity of renovation, but the main problem is energy poverty. The main conclusion is that renovation in Latvia requires a new approach that can improve the energy efficiency situation in Latvia, and providing such a method in the form of building renovation based on private-public partnership is the possible approach.