The European Investment Bank (EIB), in partnership with the European Commission, is rolling out a major new funding program aimed at helping small and medium-sized enterprises (SMEs) across Europe improve energy efficiency and accelerate decarbonization. Over the next three years, the initiative will deploy €17.5 billion in financing, combining both new and existing financial instruments, including debt and equity, to help more than 350,000 businesses adopt energy-saving technologies and sustainable practices.

A central goal is to mobilize over €65 billion of total investment by 2027, closing the investment gap between SMEs and larger firms that traditionally invest more heavily in energy efficiency. SME investment in this area is currently only about half of what larger companies commit. Through this program, the EU hopes to simplify financing access, cut energy costs, enhance climate resilience, and support competitiveness.

To make financing easier for SMEs, the initiative will introduce a “one-stop-shop for energy efficiency”, which consolidates the EIB Group’s intermediated lending offerings into a single-entry point. This is intended to reduce barriers to entry, speed up implementation of projects, and streamline interactions. Private sector partners will also be engaged via dedicated investment platforms to target projects specific to SME energy efficiency and decarbonization.

Another key feature is the support for more flexible business models like “servitization,” or energy efficiency as a service, where companies don’t necessarily purchase energy-efficient equipment outright, but instead pay for the outcomes, for such as lighting or heating. This helps reduce upfront cost burdens for SMEs.

The program also includes advisory services, EU budget guarantees, and assistance via EU funding tools like Invest EU and the Clean Energy Transition subprograms. It is part of a broader EU policy push under initiatives like the Clean Industrial Deal and the Action Plan for Affordable Energy.

Overall, the initiative represents a big step in the EU’s effort to green its economy from the ground up by making sustainability accessible to SMEs. By lowering financial and logistical hurdles, the EU aims to make energy efficiency investments more widespread, boosting both environmental outcomes and economic competitiveness across its member states.

Source :

https://www.esgtoday.com/eu-to-provide-e17-5-billion-to-finance-energy-efficiency-decarbonization-projects-for-smes/