Spotlight on EU funded project – Unlocking SME potential: Financing energy efficiency for a sustainable future

The paper discusses the challenges Europe faces in promoting sustainability and resilience, highlighting the key role of small and medium-sized enterprises (SMEs) in the European economy. It emphasizes the importance of enhancing energy efficiency within SMEs, connecting it to Europe's health due to SMEs' significant contribution to employment and value generation. The paper references the DEESME 2050 project, demonstrating the potential benefits of energy performance improvements in SMEs, particularly in reducing greenhouse gas emissions and bolstering resilience. However, it points out the financial and capacity constraints SMEs face in achieving these improvements. The International Energy Agency's Energy Efficiency 2024 report is cited, suggesting that policy implementation needs to accelerate, and investment in energy efficiency must increase to align with global climate goals. The paper also refers to past efforts, like the Energy Efficiency Financial Institutions Group, which worked toward enhancing energy efficiency investment in Europe. The EU's commitment to reduce net greenhouse gas emissions by at least 55% by 2030 is detailed, as well as the establishment of the European Energy Efficiency Financing Coalition in 2024 to foster investment in energy efficiency. The need for financial support for SMEs and the role of intermediaries, such as the not-for-profit organisation Energy Efficiency in Industrial Processes (EEIP), are underscored. The paper concludes by stressing the centrality of SMEs to Europe's economy and innovation, the importance of energy efficiency for competitiveness, and the urgent need for scaling up support to SMEs, using the ongoing DEESME 2050 project as an example of effective assistance to the furniture industry's SMEs.