EU: Pact to Finance Energy Efficiency

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The Joint Declaration on Financing Energy Efficiency, signed today by Energy Commissioner Kadri Simson and the Energy Ministers of the 27 EU Member States, represents a strong commitment to energy efficiency. This initiative, taken on the sidelines of the TTE Council, underlines the need to mobilize private investment for energy efficiency and to create a sustainable, long-term financing framework. The Declaration marks the first step towards setting up the European Coalition for Financing Energy Efficiency, a form of trilateral cooperation between the Commission, Member States and financial institutions.

Coalition Objectives and Structure

The main aim of the Coalition is to create a favorable market environment for energy efficiency investments and to increase the private financing needed to achieve the EU’s energy and climate objectives for 2030 and 2050. The Coalition will be organized around three main axes: a political level to define strategic orientations, a group of experts to provide technical knowledge, and national hubs, which will be specific working groups developed at national level to identify financing solutions adapted to each market. These hubs will play a crucial role in tailoring energy efficiency financing strategies to the specific needs of each member state.

The role of EEFIG and UNEP FI

The Coalition builds on the achievements and legacy of the Energy Efficiency Financial Institutions Group (EEFIG), created by the Commission and the United Nations Environment Programme Finance Initiative (UNEP FI). EEFIG served as a joint platform for cooperation and dialogue with financial institutions on energy efficiency, and provided the Commission with concrete studies and recommendations on the way forward for financing energy efficiency. UNEP FI will remain a privileged partner of the Coalition, contributing its expertise and global network.

Next steps and potential impact

An official launch event for the European Coalition for Financing Energy Efficiency is planned for early 2024. In the meantime, the Commission will launch a call for participation for financial institutions and other relevant stakeholders in the field of energy efficiency financing. This initiative is a giant step towards achieving the EU’s energy and climate objectives, by mobilizing essential financial resources and creating a framework conducive to investment in energy efficiency projects across Europe.
The signing of this Joint Declaration and the formation of the European Coalition for Energy Efficiency Financing mark a decisive turning point in Europe’s energy transition. With a strong commitment to energy efficiency and sustainable financing, the EU is positioning itself as a leader in the fight against climate change and the promotion of a greener, more sustainable economy.

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