The European Investment Bank (EIB) this week announced its commitment to provide €17.5 billion to support energy efficiency improvements across more than 350,000 small and medium-sized enterprises in Europe over the next three years.

The initiative, supported by the European Commission, aims to double the EIB’s financing in this sector, helping SMEs reduce energy bills and enhance their competitiveness, the bank said.

The goal of the initiative is to mobilise total investments exceeding €65 billion by 2027 for energy-saving projects.

To achieve this, the EIB and the commission plan to use both existing and new financial instruments, including loans, bonds, and equity securities.

A single access point will also be established to simplify participation for SMEs.

Investment platforms will be supported alongside private partners to promote energy efficiency projects, the EIB added.

The President of the EIB, Nadia Calvino, said this is a major step for lowering business energy costs and strengthening Europe’s competitiveness.

Energy and Housing Commissioner Dan Jorgensen said SMEs are the backbone of the European economy and that this initiative will fill the investment gap while simplifying access to finance.

Bertrand Picard, founder of the Solar Impulse Foundation, said energy efficiency is Europe’s most powerful and undervalued resource and that the initiative can deliver innovative solutions to hundreds of thousands of SMEs.

The EIB group is collaborating with the Solar Impulse Foundation to promote energy efficiency as a service.

This model allows SMEs to pay for services, such as heating and lighting, instead of purchasing equipment, which reduces initial investment costs and accelerates the adoption of energy efficiency solutions, the organisations said.