Energy Efficiency Investments in EU Firms: Key Insights and Drivers

European businesses are increasingly investing in energy efficiency to reduce costs and mitigate environmental impacts, but smaller firms face significant obstacles, including lack of finance, skills, and regulatory uncertainty. According to a new report by the European Investment Bank, energy costs are a major driver of investment in energy efficiency, with nearly 50% of EU firms citing energy costs as a major barrier in 2024. Large firms lead in energy efficiency investments, but smaller firms spend more of their turnover on energy and are more vulnerable to energy shocks.

Key Takeaways:

• Concerns over energy costs drive firm investments in energy efficiency, with 49.6% of EU firms citing energy costs as a major barrier in 2024.
• Large firms invest significantly more in energy efficiency, with 60% of large firms investing in 2024 compared to 40% of small and medium-size firms.
• Smaller firms, despite spending more of their turnover on energy, invest less in energy efficiency and are more vulnerable to energy shocks.
• Targeted support can boost investment in energy efficiency, with policy intervention increasing the likelihood of investment by 15-19 percentage points.
• Policy support, such as tailored financing, advisory services, and simplified energy audits, can help overcome obstacles to investing in energy efficiency, particularly for small firms.
• Lack of finance, skills, and regulatory uncertainty continue to hinder investment in energy efficiency, particularly for smaller firms.

Statistics:

• 49.6% of EU firms cited energy costs as a major barrier to investment in 2024.
• 60% of large firms invested in energy efficiency in 2024 compared to 40% of small and medium-size firms.
• 12,000 EU firms and 800 US firms participate in the EIB Investment Survey.
• 15-19 percentage points increase in the likelihood of investment in energy efficiency is achieved through policy intervention.

Sources:

• European Investment Bank report
• EIB Investment Survey data
• European Investment Bank (2024) Energy Efficiency Investments by EU Firms.