More than 350,000 companies across Europe are set to make energy efficiency gains through a €17.5 billion financing initiative by the European Union. The energy efficiency for small and medium-sized enterprises (SMEs) initiative, led by the European Investment Bank (EIB) Group and supported by the European Commission, seeks to help SMEs using proven energy-saving technologies to lower their energy bills and boost their resilience and competitiveness.

The €17.5 billion financing effort by the EIB Group will nearly double the current level of support during the 2025-2027 period. It will target energy efficiency and decarbonisation steps taken by SMEs and will use a combination of existing and new financial products, including debt and equity instruments. The initiative aims to mobilise total investment of over €65 billion by 2027 for energy savings by SMEs, helping to close a market gap in Europe.

The initiative was announced by EU Commissioner for Energy & Housing Dan Jørgensen and EIB Group President Nadia Calviño at a conference in Brussels.

To streamline access and support for businesses, the initiative will introduce a “one-stop-shop for energy efficiency for SMEs.” This single-entry point integrates the full EIB Group intermediated lending offering, simplifying engagement and accelerating implementation.

The Commission’s backing will include EU budget guarantees offered through InvestEU and the LIFE environmental programme. In addition, the Commission is launching a dedicated working group focused on SMEs under the European Energy Efficiency Financing Coalition to address barriers and develop financing solutions adapted to the needs of small businesses across Europe.

Under the new initiative, the EIB will back dedicated investment platforms working alongside private sector partners, specifically targeting SME energy efficiency projects. Beyond financing concrete projects, these platforms will broaden the investor base and attract crucial capital into Europe’s energy efficiency ecosystem.

These measures reflect the commitment of the EIB Group and the Commission to supporting SMEs in their green transition and, by extension, to accelerating Europe’s competitiveness and decarbonisation drives under the EU’s Clean Industrial Deal and Action Plan for Affordable Energy.