European Investment Bank Group, European Commission and the Solar Impulse Foundation present energy efficiency initiative for smaller companies at COP29 in Baku

European Investment Bank Group, European Commission and the Solar Impulse Foundation join forces to assist small and mid-sized companies in their decarbonisation efforts. A new energy efficiency initiative will facilitate investments in energy efficiency for small and medium enterprises by supporting pilot projects that explore new ways to enhance these investments in this market segment. The initiative aims to demonstrate how collaboration between multilateral development banks and the public and private sectors can attract private climate finance, enhancing SMEs' resilience and competitiveness.

Baku, Azerbaijan, 14 November 2024 – Energy efficiency remains a largely untapped opportunity to reach climate goals while ensuring competitiveness and energy security. Today, the European Investment Bank Group (EIBG), the European Commission (EC) and the Solar Impulse Foundation (SIF) presented a pilot initiative to bolster energy efficiency investments benefitting small and mid-sized enterprises (SMEs). The initiative is a cornerstone of the EIB Group Strategic Roadmap 2024-2027, reflecting the EIBG’s commitment to sustainable development and economic resilience. It aims to support the green transition and enhance the competitiveness of SMEs across Europe.

The new initiative aligns with the EU's legally binding target to reduce energy consumption by 11.7% by 2030, contributing significantly to the global pledge of doubling energy efficiency. This could cut energy bills by some 30% and lower energy-related CO2 emissions by half. However, the pace of energy-efficient technology deployment is hindered by prohibitive upfront costs, and a lack of resources and knowledge within SMEs.

The energy efficiency initiative has been developed based on market testing with several fund managers and is therefore likely to attract investment platforms and funds. In cooperation with the Solar Impulse Foundation, it will support the establishment of pilot projects, which will serve as proof of concept. Some of them are expected to change the way businesses operate, particularly through an approach known as “servitisation” or energy efficiency as a service.

In this servitisation model, companies pivot from selling products to selling outcomes. For example, rather than buying energy efficient heating or lighting equipment, SMEs pay for the warmth or light they need, while the provider of these services retains ownership of the equipment. This allows businesses to implement energy efficiency measures without the usual upfront costs, thereby turbocharging the transition.

“Studies show that small and medium-sized businesses find it much harder to invest in energy efficiency than large companies,” said Ambroise Fayolle, EIB Vice President in charge of climate action. “At the same time SMEs generate about 60% of Europe’s emissions, and unless we help them to become more efficient, it will be impossible to achieve EU climate goals. Our initiative will support a host of energy efficiency measures, contributing to a more sustainable future.”

The European Investment Bank Group will partner with the Solar Impulse Foundation, who has developed the “Solar Impulse Efficient Solution” label and promotes a portfolio of 1600+ certified clean technologies. The SIF will in particular bring its network, market knowledge and pioneering spirit to the initiative.

 “Implementing efficient solutions that reduce the use of energy and resources allows to decrease GHG emissions, but also to save huge amounts of money and increase the profit margin of a company. However, even though the operational costs are much lower, high initial investments often limit their use. This is what we aim to address today by partnering with the European Investment Bank and introducing "efficiency as-a-service" models for small and medium businesses. An approach that enables stakeholders to access clean technologies without prohibitive investments. By working with the EIB, we’re breaking down financial hurdles and fast-tracking the adoption of much needed energy efficient technologies,” said Bertrand Piccard, Initiator and Chairman of the Solar Impulse Foundation. 

 The European Commission will support the joint initiative in the context of its InvestEU programme.

The Commission’s Director General for Energy, Ditte Juul Jørgensen, said: “The EU has been intensifying its efforts to promote energy efficiency. The Commission is pleased to work with the European Investment Bank and the Solar Impulse Foundation to facilitate further investments in energy efficiency and help SMEs to reap the benefits of the clean energy transition. This is essential to ensure the competitiveness of our industry and to achieve our climate and energy targets. This further contributes to the global goal of doubling energy efficiency improvements by 2030, as agreed at COP28. The successful launch of the European Energy Efficiency Financing Coalition is a proof to this end. I also look forward to the 10th Anniversary IEA Global Annual conference on Energy Efficiency, which will be co-hosted by the European Commission next year.”