The European Investment Bank (EIB) has pledged €17.5bn ($20.4bn) for small and medium-sized companies (SMEs), for decarbonisation and energy efficiency, over 2025-27.
The initiative aims to mobilise total investment of more than €65bn by 2027 for energy savings by smaller companies, and "seeks to help SMEs using proven energy-saving technologies to lower their energy bills and boost their resilience and competitiveness".
The European Commission will also launch a working group, focused on "addressing barriers and developing financing solutions adapted to the needs of small businesses across Europe", the EIB said today.
Almost 200 countries agreed at the UN Cop 28 climate summit in December 2023 to double the rate of energy efficiency by 2030 — though a baseline level was not defined. But the world is not on track to reach this goal, energy watchdog the IEA said in November 2024.
The EIB is the lending arm of the EU, and is owned by its member states. The bank provided €50.7bn in energy transition and climate finance in 2024.
The European Bank for Reconstruction and Development (EBRD) — like the EIB, a multilateral development bank — today launched a scheme with some similarities. The EBRD has established a $634mn "green finance" programme, comprising concessional loans, grants and technical assistance.
It will fund "green investments" such as energy efficiency, renewable energy and "climate-resilient technologies", the EBRD said. The scheme "is designed to make green finance affordable and accessible" for all — for households, SMEs and large business, the EBRD said. The UN's Green Climate Fund will contribute $200mn to the scheme.
The EBRD's programme will be available in Armenia, Egypt, Georgia, Jordan, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Morocco, North Macedonia, Serbia, Tajikistan and Uzbekistan.
