Finance & Economics

The EU aims to produce and import 20 million tonnes of renewable hydrogen by 2030 to achieve climate targets. The European Hydrogen Bank, integral to REPowerEU, supports this via subsidies and market integration. Investments in hydrogen technologies foster innovation, job creation, and international cooperation, enhancing energy security and global leadership in clean energy transitions.

The Global AI Infrastructure Investment Partnership, with $30 billion from Microsoft, BlackRock, and others, aims to build AI data centers and related energy infrastructure, addressing the high energy demands of AI. Other initiatives like Google's AI Opportunity Fund and IndiaAI Mission support AI infrastructure development, focusing on sustainability and international cooperation to ensure global economic and technological advancement.

SMEs overlook 10-30% energy savings due to incomplete audits and complex consumption patterns. Adopting EMS offers cost reduction, improved productivity, regulatory compliance, and enhanced reputation. Barriers such as perceived costs, resource constraints, and lack of commitment hinder EMS implementation. Technology aids effective energy management, with smart meters and IoT enabling real-time data tracking. Best practices include starting with energy audits, setting reduction goals, and engaging employees. Successful EMS adoption in SMEs contributes to carbon emission reduction and energy transition goals, aligning with EU support for SME recovery and innovation.

How social housing associations and EU projects are using innovative financial and solidarity mechanisms to combat energy poverty, emphasizing the dual benefit of social welfare and environmental sustainability through the refurbishment of buildings for energy efficiency.

Energy audits are becoming vital for SMEs in Europe, offering detailed analysis of energy usage and efficiency, highlighting cost-saving measures. They notably influence investment decisions in energy-efficient technologies, with smaller firms and innovative companies benefitting the most. However, financial constraints remain a barrier to implementing energy-saving opportunities.

The Rassemblement National's 2024 program prioritizes nationalistic policies, with an emphasis on nuclear power, potentially hindering renewable energy development. The program's focus on traditional energy sources may lead to regulatory changes, affecting investor confidence and France's alignment with EU goals. This could result in tensions with the EU, reduced funding, and a slowed energy transition.

AI accelerates the global energy transition by optimizing grid operation, predictive maintenance, and energy efficiency, advancing R&D, and enhancing energy trading strategies, attracting investment and job creation, with associated financial opportunities and risks.

The EEEFinCoalition launch aims to foster dialogue and improve the energy efficiency investment climate. It builds on EEFIG's work which enhanced commercial investment in energy-efficient technologies. EEFIG's final reports serve as key references for financing energy efficiency in buildings and industry, with a focus on consumer demand and regulatory frameworks. The EEIP extends EEFIG's efforts, particularly for SMEs, through projects like DEESME 2050.

This article discusses institutional investors' perspective on energy efficiency and how metered efficiency could spur investment. It addresses financial institutions' growing interest in energy efficiency due to market potential, risk mitigation, carbon emission reduction, and regulatory pressure. Barriers like small project scale, heterogeneity, data scarcity, and performance risk inhibit investment. The concept of metered efficiency, akin to Power Purchase Agreements, is presented as a solution to align payment with actual energy savings, enhancing investability and quality assurance in energy efficiency projects.