More than 350,000 European small and medium-sized enterprises (SMEs) will soon benefit from a landmark €17.5 billion financing initiative dedicated to energy efficiency. Announced by the European Investment Bank (EIB) Group in partnership with the European Commission, the programme seeks to accelerate the green transition of SMEs by cutting energy waste, reducing emissions, and enhancing sustainability.
Closing the energy efficiency gap
The plan aims to mobilise over €65 billion in total green investments by 2027, almost doubling current levels of support for energy efficiency. SMEs, which represent the backbone of Europe’s economy, currently invest in energy efficiency at half the rate of larger firms. Bridging this gap is vital not only for competitiveness but also for Europe’s climate commitments.
A one-stop-shop for greener SMEs
To simplify access to funding, the EIB Group will create a “one-stop-shop for energy efficiency”, providing SMEs with a single entry point to tailored loans, equity instruments, and advisory services. This will enable thousands of businesses to adopt cleaner technologies faster and at lower cost, directly contributing to Europe’s Clean Industrial Deal.
Innovation: energy efficiency as a service
A key element of the initiative is the partnership with the Solar Impulse Foundation, which is promoting a model of servitisation — also known as “energy efficiency as a service.” Instead of buying costly equipment, SMEs pay only for the energy services they use (heating, cooling, lighting), while providers retain ownership and ensure performance.
This model removes the barrier of upfront investment, making the adoption of green solutions more accessible.
“Every kilowatt-hour spared is money earned and emissions avoided,” emphasised Bertrand Piccard, chairman of Solar Impulse, who has identified over 1,600 profitable green solutions ready for deployment.
Strong political backing for climate action
EIB President Nadia Calviño stressed the initiative’s dual role in lowering energy costs and protecting the planet:
“This is a significant step to help companies cut costs and reduce emissions. Because SMEs are central to Europe’s economy, this also reinforces our collective climate ambition.”
EU Commissioner for Energy and Housing Dan Jørgensen added:
“With more energy-efficient SMEs, we not only strengthen the economy but also ensure healthier communities and a more sustainable climate future.”
Driving the EU’s sustainability agenda
The European Commission is launching a dedicated working group to focus on SME and mid-cap financing within the European Energy Efficiency Financing Coalition. By addressing barriers to investment, the EU hopes to design financial solutions adapted to the unique needs of small businesses.
Additional support will come from EU budget guarantees and sustainability-focused programmes such as InvestEU and LIFE Clean Energy Transition. Together, these mechanisms will channel both public and private capital into Europe’s green economy.
A decisive step for Europe’s climate leadership
This €17.5 billion initiative illustrates Europe’s determination to align its economic recovery with environmental responsibility. By helping 350,000 SMEs cut energy bills, adopt cleaner technologies, and embrace innovative financing models, the EIB Group and the EU are accelerating the continent’s journey toward climate neutrality.
Ultimately, this plan reinforces the idea that energy efficiency is Europe’s most undervalued resource—a resource capable of delivering lower costs, higher competitiveness, and a healthier planet.
