The European Investment Bank Group will provide €17.5 billion in financing to help more than 350,000 small and medium-sized enterprises across Europe improve their energy efficiency over the next three years, according to a press release. The initiative, supported by the European Commission, nearly doubles current EIB Group financing in this sector and aims to mobilize over €65 billion in total investment by 2027. The program will use debt and equity instruments to help SMEs adopt proven energy-saving technologies, reduce costs, and boost competitiveness.
The initiative addresses a critical market gap where SMEs invest in energy efficiency at only half the rate of larger companies, despite being the backbone of Europe’s economy. European businesses currently spend more of their revenue on energy bills compared to their U.S. counterparts, creating both challenges and opportunities for efficiency improvements. The new financing will target energy efficiency and decarbonization measures specifically designed for smaller enterprises.
EIB Group President Nadia Calviño emphasized the significance of the support: “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.”
The program introduces a “one-stop-shop for energy efficiency for SMEs” to streamline access and simplify engagement. Additionally, the EIB Group partnered with the nonprofit Solar Impulse Foundation to promote “energy efficiency as a service,” where companies pay for outcomes rather than purchasing equipment outright.
The Commission will provide EU budget guarantees and advisory services through InvestEU and LIFE programs, reflecting joint commitment to supporting SMEs’ green transition under the EU’s Clean Industrial Deal and Action Plan for Affordable Energy.
