The European Investment Bank (EIB) announced today that it will provide €17.5 billion in funding over the next three years, supported by the European Commission, for the energy efficiency for small and medium-sized enterprises (SMEs) initiative.

The EIB said that more than 350,000 businesses will receive support through the initiative, with the program backing energy efficiency and decarbonization steps taken by SMEs, using a combination of existing and new financial products, including debt and equity instruments.

Under the initiative, announced by EU Commissioner for Energy & Housing Dan Jørgensen and EIB Group President Nadia Calviño, the EIB Group will work alongside private sector partners to back dedicated investment platforms specifically targeting SME energy efficiency projects.

Overall, the EIB and EU Commission said that the initiative aims to mobilize investment of over €65 billion for energy savings by SMEs by 2027.

Jørgensen said:

“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.”

Under the new initiative, the EIB said that it will introduce a new “one-stop-shop for energy efficiency for SMEs,” providing a single entry point integrating the full EIB Group intermediated lending offering, helping to simplify engagement and accelerate implementation.

The Commission said that it has also launched a new dedicated working group under the European Energy Efficiency Financing Coalition, focused on addressing barriers and developing financing solutions adapted to the needs of small businesses across Europe.

Calviño said:

“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.”