Delivering Europe’s clean energy transition will require massive annual investments, estimated at €660 billion until 2030 and rising to €695 billion between 2031 and 2040. Although significant progress has been made, the current pace and scale of investment must increase to ensure the continent’s economy relies on secure, affordable, and clean energy.
In response, the European Commission adopted a Clean Energy Investment Strategy (COM/2026/116) aimed at mobilizing additional private investment for clean energy. Public funding remains important as a catalyst, but the transition will primarily depend on leveraging private capital. Public financing can de-risk projects, spread costs over time, and attract institutional investors to fund clean technologies, energy efficiency, and modern infrastructure such as electricity grids.
The European Investment Bank (EIB) Group plans to provide over €75 billion in financing over the next three years to support the objectives of the strategy. Commissioner for Energy and Housing Dan Jørgensen emphasized that scaling investments and strategically leveraging private capital are essential for Europe’s competitiveness, security, and decarbonization. EIB Group President Nadia Calviño highlighted that investments in clean energy lower bills, create jobs, and reduce dependence on fossil fuel imports, strengthening EU energy sovereignty.
The strategy focuses on four main measures. First, it aims to improve access to capital markets for electricity grid operators, including equity support through a proposed Strategic Infrastructure Investment Fund with an indicative €500 million commitment from the EIB. Second, it seeks to enhance lending for grid operators by increasing banks’ loan securitization and intermediated lending, particularly for smaller operators. Third, targeted public funds will de-risk innovative clean energy technologies and energy-efficiency projects, including small modular nuclear reactors and energy efficiency as a service models, supported through a €500 million pilot scheme. Fourth, an Energy Transition Investment Council will be established to align public policy with investor needs and encourage long-term private investment in the energy sector.
The upcoming energy and climate framework for the next decade will clarify the full scope of required investments. Complementing this, the EU’s 2028–2034 long-term budget and national support schemes will act as strategic levers to de-risk projects, reduce financing costs, and ensure public funds amplify, rather than replace, private investment in Europe’s clean energy transition.
