European SMEs to benefit from €65 billion mobilised for energy efficiency under new EIB and EU initiative

(IN BRIEF) The EIB Group has pledged €17.5 billion to accelerate energy efficiency investments by more than 350,000 European SMEs between 2025 and 2027. Backed by the European Commission, the initiative will nearly double current EIB support and aims to mobilise over €65 billion in investment. The programme will feature a one-stop-shop for SME financing, new investment platforms, and innovative approaches such as “energy efficiency as a service,” promoted in partnership with the Solar Impulse Foundation. EU officials highlighted the move as essential to lowering energy costs, closing the investment gap with larger firms, and strengthening Europe’s competitiveness. The EIB also released a new report showing European businesses spend a higher share of turnover on energy than their US peers, underlining the importance of boosting efficiency.

(PRESS RELEASE) LUXEMBOURG, 11-Sep-2025 — /EuropaWire/ — The European Investment Bank (EIB) Group has announced a €17.5 billion financing commitment to help more than 350,000 small and medium-sized enterprises (SMEs) across Europe invest in energy efficiency over the next three years. Backed by the European Commission, the initiative will nearly double current levels of EIB support and is expected to mobilise more than €65 billion in total investment by 2027, strengthening SMEs’ resilience, lowering their energy costs, and boosting competitiveness.

The financing programme was unveiled at a conference in Brussels, where EU leaders emphasized the importance of closing the investment gap in energy efficiency between smaller businesses and larger corporations. The new initiative will combine existing and new financial products, including loans, equity instruments, and dedicated investment platforms, with the aim of attracting additional private capital into Europe’s energy efficiency ecosystem.

“This is a significant step up in support to help companies cut energy costs,” said EIB Group President Nadia Calviño. “And because SMEs are the backbone of the EU economy, this is also an important step in enhancing Europe’s competitiveness.”

Commissioner for Energy and Housing Dan Jørgensen added: “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.”

Streamlined access and new financing models
A “one-stop-shop for energy efficiency for SMEs” will be introduced, serving as a single-entry platform for all EIB intermediated lending products to simplify processes and speed up adoption. The EIB Group will also back dedicated platforms that target SME energy efficiency projects, working alongside private-sector partners to increase investor participation.

In addition, the EIB Group has partnered with the nonprofit Solar Impulse Foundation to promote “energy efficiency as a service,” a model first highlighted at COP29. Under this approach, companies pay for outcomes such as heating or lighting rather than purchasing the equipment outright, eliminating upfront costs and accelerating adoption of energy-saving solutions.

Bertrand Piccard, initiator and chairman of the Solar Impulse Foundation, stressed the potential of the collaboration: “Energy efficiency is Europe’s most powerful and undervalued resource. Every kilowatt-hour spared is money earned and emissions avoided. With this initiative, we can bring proven solutions to hundreds of thousands of SMEs across Europe, boosting their resilience, competitiveness, and ultimately the EU’s industrial leadership.”

Broader support and insights
The European Commission is also launching a new working group under the European Energy Efficiency Financing Coalition to specifically address barriers faced by SMEs and mid-caps. Support from the EU will include budget guarantees and advisory services via InvestEU and the LIFE Clean Energy Transition programme.

The EIB Group also presented a new report at the event, which highlights its experience financing energy efficiency projects across Europe and provides data from the EIB Investment Survey. The findings show that European firms typically spend a higher share of their turnover on energy bills compared with US companies, though high energy prices have already prompted many European businesses to step up investments in efficiency.

Together, these measures signal a strengthened joint commitment from the EIB Group and the European Commission to help SMEs lead Europe’s green transition, while also advancing the EU’s Clean Industrial Deal and Action Plan for Affordable Energy.

Background information  

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. The EIB finances investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, a stronger Europe in a more peaceful and prosperous world and Europe’s capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

Approximately half of the EIB’s financing within the EU targets cohesion regions, where per-capita income is below the EU average, while almost 60% of annual EIB Group investments support climate action and environmental sustainability.

High-quality, up-to-date photos of the organisation’s headquarters for media use are available here.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

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SOURCE: European Investment Bank