EU launches EUR 17.5 billion energy efficiency initiative for SMEs
The European Union plans to double its support to small and medium-sized enterprises in the 2025-2027 period for investments in energy efficiency and decarbonization.
The European Commission and the European Investment Bank (EIB) Group have launched a EUR 17.5 billion financing initiative.
According to the commission, more than 350,000 companies across Europe are set to make energy efficiency and decarbonization gains through the scheme.
The initiative for energy efficiency for small and medium-sized enterprises (SMEs) is led by the EIB Group. It aims to help firms utilize proven energy-saving technologies to reduce their energy bills and enhance their resilience and competitiveness, the commission underscored.
The EU expects to mobilize over EUR 65 billion in overall investments
The program will use a combination of existing and new financial products, including debt and equity instruments. The EU expects to mobilize over EUR 65 billion of investments in the segment by 2027.
To streamline access and support for businesses, the initiative will introduce a “one-stop shop for energy efficiency for SMEs,” the update adds. The commission explained that a single-entry point would integrate EIB Group’s intermediated lending offering and added it would simplify engagement and accelerate implementation.
The backing by the commission will include EU budget guarantees
The commission’s backing will include EU budget guarantees offered through the InvestEU mechanism and LIFE environmental program.
EU Commissioner for Energy and Housing Dan Jørgensen pointed out that SMEs invest in energy efficiency at only half the rate of larger companies. “This EIB initiative supported by the commission will be key to closing the investment gap, simplifying access to financing, and accelerating the deployment of energy efficiency solutions,” he added.
According to EIB Group President Nadia Calviño, the initiative represents a significant step up in support to help companies cut energy costs.
“Servitisation” or energy efficiency as a service
The EIB said it is partnering with the Solar Impulse Foundation, a nonprofit organization, to promote a model known as “servitisation” or energy efficiency as a service.
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. EIB stressed that the model eliminates upfront investment costs for businesses, making it easier and faster to adopt energy efficiency measures.
“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,” said Bertrand Piccard, initiator and chairman of the Solar Impulse Foundation.
