EIB Commits €60m to Unlock €400m for SME Energy Efficiency

The European Investment Bank (EIB) is stepping up support for business decarbonisation across Europe with a €60 million investment into Solas Capital's new Solas Sustainable Energy Fund II (SSEF II), aiming to mobilise nearly €400 million for energy-efficiency projects targeting small and medium-sized enterprises (SMEs).

The move strengthens Europe's push to lower energy costs, cut carbon emissions and boost competitiveness among SMEs — widely regarded as the backbone of the EU economy.

Mobilising €400 Million for Green Upgrades

The EIB's €60 million commitment will anchor a co-financing platform expected to attract substantial private-sector capital.

The platform will support the rollout of technologies including:

• LED lighting systems

• Building insulation upgrades

• Heat pumps

• Rooftop solar installations

• Electric vehicle charging infrastructure

Projects will be deployed across multiple EU countries, targeting SMEs seeking to reduce energy consumption and operating costs.

"We are helping deliver real impact through energy efficiency as a service," said EIB Vice-President Ambroise Fayolle. "The result will be lower energy bills for companies and a stronger European economy."

Expanding the Energy-as-a-Service Model

The initiative builds on the "energy efficiency as a service" model, in which businesses shift from purchasing equipment outright to buying contracted energy services that deliver measurable savings.

This approach:

• Removes upfront capital barriers for SMEs

• Provides immediate, trackable energy savings

• Creates asset-backed, contracted cash flows for investors

• Supports Europe's energy security and transition goals

Sebastian Carneiro, CEO and Co-Founder of Solas Capital, said the partnership deepens collaboration with the EIB.

"Building decarbonisation infrastructure is a crucial pillar of the energy transition," Carneiro said. "The €60 million co-investment enables us to unlock much-needed infrastructure investments for SMEs while contributing to European competitiveness and energy security."

Building on Previous €30m Partnership

The new platform follows the EIB's €30 million investment in 2022 into the original €220 million Solas Sustainable Energy Fund (SSEF).

The expanded partnership reflects growing investor appetite for energy-efficiency debt instruments that combine climate impact with predictable returns.

The agreement was formally inaugurated at a signing ceremony in Luxembourg, bringing together partner banks and stakeholders to discuss the EIB Group's broader green financing and advisory strategy, including support from the European Investment Fund (EIF).

Part of €17.5bn EIB SME Energy Initiative

The financing platform is the latest project under the EIB Group Energy Efficiency for SMEs Initiative, launched last year with backing from the European Commission.

The initiative aims to provide:

• €17.5 billion in financing by 2027

• Support for up to 350,000 SMEs across Europe

In 2025 alone, the programme delivered:

• €6 billion in financing

• Support for up to 150,000 SMEs

That figure is double the amount provided in 2024, putting the initiative on track to surpass its original targets.

The Solar Impulse Foundation, a nonprofit promoting energy-efficiency "servitisation," is also supporting the initiative, which was first highlighted at COP29 in 2024.

Strengthening Europe's Competitiveness and Energy Security

By expanding access to proven, cutting-edge energy-saving technologies, the EIB and Solas Capital aim to help SMEs reduce operational costs while strengthening Europe's resilience to energy price volatility and supply disruptions.

The €60 million commitment signals continued momentum in aligning private capital with Europe's decarbonisation strategy — with SMEs at the centre of the green transition.