The objective of the project was to remove the key barriers to the implementation of economically feasible energy efficiency technologies and measures in the residential and service sectors, there by reducing their energy consumption and associated greenhouse gas emissions. The mi-term evaluation took place from 21st May to 30th June 2007, including a mission to Zagreb from 29th to 31st May and from 17th to 21st June 2007. At this time, the project had been operational for almost two years. Lessons learned: 1. The project has developed local actions in cities and regions, successfully bringing local stakeholders together in a targeted action. Right from the start, they were involved in the project and it contributed to the success of the project. 2. This project is a textbook example of adaptive management, addressing the wider socio-economic context as well as details of the implementation situation in its activities. For that purpose, the evaluators consider that a better elaboration of baselines and targets and development of a monitoring system are still needed, taking into account the activities of the project and realistic ratios between investments and savings. 3. The overall appreciation of the project formulation is moderately satisfactory. However, the overall appreciation of the project implementation is highly satisfactory. By consequence, the evaluators consider that it is probably better to round up a project design as quickly as possible, focusing on the main directions of the project and leaving details to the implementation phase.