More than 350,000 companies across Europe are set to make energy efficiency gains through a €17.5 billion financing initiative by the European Union.
The energy efficiency for small and medium-sized enterprises (SMEs) initiative, led by the European Investment Bank (EIB) Group and supported by the European Commission, seeks to help SMEs using proven energy-saving technologies to lower their energy bills and boost their resilience and competitiveness.
The €17.5 billion financing effort by the EIB Group will nearly double the current level of support during the 2025-2027 period. It will target energy efficiency and decarbonisation steps taken by SMEs and will use a combination of existing and new financial products, including debt and equity instruments.
The initiative aims to mobilise total investment of over €65 billion by 2027 for energy savings by SMEs, helping to close a market gap in Europe. The initiative was announced at a conference in Brussels today. Speeches at the event will be available on EBS.
“This is a significant step up in support to help companies cut energy costs,” said EIB Group President Nadia Calviño. “And because SMEs are the backbone of the EU economy, this is also an important step in enhancing Europe’s competitiveness.”
“SMEs are at the heart of Europe’s economy and way of life. But they invest in energy efficiency at only half the rate of larger companies,” said Commissioner for Energy and Housing Dan Jørgensen. “This EIB initiative supported by the Commission will be key to close the investment gap, simplify access to financing, and accelerate the deployment of energy efficiency solutions. With more energy-efficient SMEs, we boost our economy, we benefit our climate, and we keep a healthy heartbeat in communities across Europe.”
To streamline access and support for businesses, the initiative will introduce a “one-stop-shop for energy efficiency for SMEs.” This is a single-entry point that integrates the full EIB Group intermediated lending offering, simplifying engagement and accelerating implementation.
Under the new initiative, the EIB Group will back dedicated investment platforms working alongside private sector partners, specifically targeting SME energy efficiency projects. Beyond financing new concrete projects, these platforms will broaden the investor base and attract crucial capital into Europe’s energy efficiency ecosystem.
The EIB Group is partnering with the Solar Impulse Foundation, a nonprofit organization, to promote a model known as “servitisation” or energy efficiency as a service. First announced at the United Nations Climate Change conference COP29, this novel approach involves companies shifting from selling physical products to delivering outcomes. For example, instead of purchasing energy efficient heating or lighting equipment, SMEs pay for the warmth or light they use. The service provider retains ownership of the equipment and ensures its performance. This model eliminates upfront investment costs for businesses, making it easier and faster to adopt energy efficiency measures.
“Energy efficiency is Europe’s most powerful and undervalued resource, ” said Bertrand Piccard, initiator and chairman of the Solar Impulse Foundation. “Every kilowatt-hour spared is money earned and emissions avoided. The Solar Impulse Foundation has already identified over 1,600 profitable solutions that prove efficiency is not a cost but a gain. With this initiative, we can now bring these innovations to hundreds of thousands of SMEs across Europe, boosting their resilience, competitiveness, and ultimately the EU’s industrial leadership.”
The Commission is also launching today a dedicated working group under the European Energy Efficiency Financing Coalition, focused on SMEs and mid-caps, with the aim of addressing barriers and developing financing solutions adapted to the needs of small businesses across Europe.
The backing by the Commission will include EU budget guarantees and advisory services offered through the investment programme known as InvestEU and the LIFE Clean Energy Transition sub-programme.
Together, these measures reflect the commitment of the EIB Group and the Commission to supporting SMEs in their green transition and, by extension, to accelerating Europe’s competitiveness and decarbonisation drives under the EU’s Clean Industrial Deal and Action Plan for Affordable Energy.
Unlocking energy efficiency investments
At the event, the EIB Group presented a new report highlighting the organisation’s experience in supporting energy efficiency across Europe, along with findings from the EIB Investment Survey on the key drivers of and barriers to energy efficiency investments among EU firms. The report finds that, on average, European businesses spend more of their turnover on energy bills than their US counterparts. At the same time, European firms have responded to high energy prices by investing in energy efficiency.