Energy EfficiencyMore support being given to SMEs in Europe to become more energy efficient
Summary
The European Investment Bank (EIB) Group, with the European Commission's support, presented a €17.5 billion financing initiative to aid over 350,000 SMEs across Europe in improving energy efficiency. The initiative, announced by EU Energy & Housing Commissioner Dan Jørgensen and EIB Group President Nadia Calviño, aims to mobilize over €65 billion in investments by 2027 to address energy efficiency gaps in the market. The report accompanying the announcement highlighted that European businesses invest less in energy efficiency compared to their U.S. counterparts, despite higher energy costs, but are taking steps to invest in energy-saving measures.
The EIB's new financing will incorporate debt and equity instruments, nearly doubling current support levels for the 2025-2027 period to facilitate energy efficiency and decarbonization for SMEs. A one-stop-shop for energy efficiency will be introduced to streamline access and support, integrating the full EIB Group intermediated lending offering.
The initiative will be bolstered by EU budget guarantees through InvestEU and the LIFE environmental program. A dedicated SME working group under the European Energy Efficiency Financing Coalition is also being launched to tackle barriers and develop tailored financing solutions for SMEs. The EIB will support dedicated investment platforms that work with private partners to fund SME energy efficiency projects, attracting capital into Europe's energy efficiency ecosystem. This initiative aligns with the EU's goals outlined in the Clean Industrial Deal and Action Plan for Affordable Energy.
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More support being given to SMEs in Europe to become more energy efficient
It was a big day for energy efficiency financing this week. Importantly, the European Investment Bank (EIB) Group, supported by the European Commission announced a new financing initiative at a meeting that brought together a wide range of experts, including Rod, representing Energy Efficiency in Industrial Processes (EEIP). You can check out the EEIP LinkedIn post here.
At the event, the EIB Group also 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.
More than 350,000 European companies to get energy efficiency support under major EU financing initiative
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 by EU Commissioner for Energy & Housing Dan Jørgensen and EIB Group President Nadia Calviño at a conference in Brussels today.
The Commissioner for Energy and Housing Dan Jørgensen said
"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. 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."
EIB Group President Nadia Calviño said
"This is a significant step up in support to help companies cut energy costs. And because SMEs are the backbone of the EU economy, this is also an important step in enhancing Europe’s competitiveness."
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.
The backing by the Commission will include EU budget guarantees offered through the investment programme known as InvestEU and the LIFE environmental programme.
The Commission is also launching today a dedicated working group focused on SMEs under the European Energy Efficiency Financing Coalition, with the aim of addressing barriers and developing financing solutions adapted to the needs of small businesses across Europe.
Under the new initiative, the EIB 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.
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.
