COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Clean Energy Investment Strategy
Date: 2026-03-10
Institutions: Directorate-General for Energy, European Commission
Subjects: EU financing, EU investment, EU strategy, State aid, capital market, clean technology, climate change, energy efficiency, energy grid, renewable energy

EN 

  EN 

   EUROPEAN COMMISSION  Strasbourg, 10.3.2026  COM(2026) 116 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Clean Energy Investment Strategy                                                                              
 
 
1 

INTRODUCTION 

The  clean  energy  transition  is  vital  for  Europe’s  strategic  autonomy,  competitiveness,  and 
sustainable prosperity. Decarbonisation is an opportunity for economic growth and employment 
across  Europe.  As  the  Draghi  report1  highlights,  turning  our  ambitions  into  reality  requires 
unprecedented  levels  of  investment  and  in  particular  a  more  integrated  approach  to  mobilising 
public and private capital.  

The Commission estimates2 that to achieve our energy transition objectives and secure affordable, 
efficient, and clean energy for all Europeans, investment levels in the energy sector must reach 
approximately  EUR  660  billion  annually  between  2026  and  2030,  rising  to  EUR  695  billion 
annually from 2031 to 2040. This is a substantial increase compared to the EUR 240 billion annual 
average  observed  between  2011  and  2021.  These  investments  need  to  include  supply  side 
(generation), demand (energy efficiency), and infrastructure (grids).  

The European Investment Bank (EIB) Group is a cornerstone financier of Europe’s clean 
energy transition, combining lending, guarantees, investment and advisory support to accelerate 
the shift to a secure, competitive and low-carbon energy system. In this context, the Group intends 
to  deliver  more  than  EUR  75  billion  of  financing  over  the  next  3  years  in  support  of  the 
objectives of the energy transition and this Clean Energy Investment Strategy, drawing on 
the full range of financial products and advisory services at its disposal.  

Moreover, European initiatives such as Connecting Europe Facility-Energy (CEF), the Recovery 
and  Resilience  Facility  (RRF)  and  REPowerEU  chapters  have  helped  accelerate  investments.  
However, there are still barriers to the pace and scale of private capital mobilisation across clean 
energy  segments.  While  Europe  delivers  regulatory  predictability  and  policy  stability  for  long-
term  institutional  capital  mobilisation,  lengthy  permitting  and  grid  connection  processes  slow 
deployment and increase risks. Fragmented markets - with divergent rules, standards, and planning 
practices - raise transaction costs and hinder scaling up.  In many areas, the full system value of 
clean energy investments is not reflected, thus reducing their attractiveness to private investors. 
Recent  evidence  suggests  that  in  certain  sectors  the  investment  growth  is  slowing  and  even 
reversing.      

Private capital is available and must be mobilised 

However, the scale of the investment needed for the energy transition far exceeds public funding 
capacity  from  national  budgets,  the  Multi-Annual  Financial  Framework  (MFF)  and  the  EIB 
Group.  Public funds must be deployed not as a primary funding source, but as a strategic lever to 
crowd in this broader mix of banking and capital market finance, ultimately lowering the overall 
cost of the transition. This is particularly important in an energy system increasingly driven by 

1 https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en . 
2 All figures related to investment needs in this document, unless stated otherwise, are based on the modelling for the 
2040 Impact Assessment (SWD/2024/63 final). 

1 

 
 
 
upfront capital expenditure. Moreover, public support can help spread the costs of the transition 
over the lifetime of assets, preventing short-term price peaks. 

Meeting the scale and scope of investment needs is dependent upon diversifying funding sources 
to fully mobilise institutional capital, venture capital and private equity, as well as more traditional 
sources. Looking ahead, the success of the Savings and Investments Union will be essential for 
establishing the deep and liquid capital markets necessary to this effect.  

This strategy aims to facilitate the mobilisation of private investment in the energy sector by 
improving the link between available private capital and Europe’s pipeline of energy projects. An 
estimated  EUR  33.7  trillion  in  assets  are  under  private  management  in  Europe  3.  Institutional 
investors (e.g. insurers and pension funds) control over EUR 12 trillion4 of assets in Europe and 
seek the long-term stable returns that energy projects can provide with an appropriate framework 
in place. 

The Clean Energy Investment Strategy  complements EU initiatives, as well as Member States’ 
actions aimed to reduce risk and uncertainty, and create stable, attractive investment conditions, 
thereby reinforcing Europe’s competitiveness and energy security. 

2  UNLOCKING  PRIVATE  CAPITAL  AT  THE  SCALE  NEEDED  TO  DELIVER  THE  ENERGY 

TRANSITION 

This Clean Energy Investment Strategy is therefore designed to promote the mobilisation of private 
capital,  targeted  de-risking  of  investments,  and  a  structured  cooperation  with  the  financial 
community.  

SUPPORTING ACCESS TO CAPITAL MARKETS FOR ENERGY INFRASTRUCTURE 

Increased and accelerated investments into grids and networks, the backbone of the energy system, 
is  essential  for  European  competitiveness  and  security.  The  Draghi  report  warns  that  simply 
investing in clean electricity generation is not enough; parallel efforts to strengthen and modernise 
network infrastructure and system integration, including through innovative and digital solutions,  
are essential to ensure a successful energy transition. Yet, current financing mechanisms fail to 
mobilise capital at the required scale and speed.  

To  bridge  these  gaps,  complementing  the  recent  European  Grids  Package,  the  Commission,  in 
close  coordination  with  the  EIB  Group,  will  implement  a  targeted  approach  to  transform  the 
financial  rights  to  future  cashflows  associated  with  energy  assets  into  liquid,  investment-grade 
securities. 

Furthermore, legislative programmes, as well as other  reforms to the prudential framework for 
insurers undertaken under the review of the Solvency II Delegated Regulation, will play a central 

3 EFAMA Asset Management in Europe (16th Edition, 2024) & EFAMA: Our Industry in Numbers (Live Data Page) 
4 EIOPA: EIOPA and the EU Institutions - European Insurance and Occupational Pensions Authority 

2 

 
 
 
role  in  unlocking  private  capital.  By  reducing  the  cost  of  long-term  equity  investments  and 
securitisations  and  recognising  the  risk-reducing  effect  of  EU  or  national  guarantees  in  capital 
requirements, these reforms can encourage investments in clean energy. Insurers will be required 
to integrate forward-looking climate scenarios into their risk management, which should further 
support a gradual shift of investments towards clean energy. 

Action 1: Strengthening Grid Operator Balance Sheets 

To  ensure  operators  (DSOs  and  TSOs)  can  finance  massive  infrastructure  upgrades  while 
maintaining  high  credit  ratings,  a  suite  of  facilities  tailored  to  different  operator  needs  will  be 
deployed: 

a) Strategic Infrastructure Investment Fund (SII Fund) 

Many  crucial  energy  transition  projects  fail  to  reach  financial  closure  due  to  equity  gaps  that 
specialized  funds,  or  private  investors  cannot  cover  alone.  To  address  this,  the  Strategic 
Infrastructure Investment Fund (SII Fund) will act as an Equity Platform facilitating targeted 
Co-Investment alongside infrastructure funds. 

The EIB Group will make a commitment with an indicative amount of up to EUR  500 million, 
providing the necessary anchor capital to invest in specific energy infrastructure projects. This 
collaborative model allows private managers to leverage the EIB’s long-term investment horizon 
and technical expertise, ensuring that large-scale private equity is mobilised into the most critical 
segments of the European energy network. 

Co-investments  allow  for  targeted  support  to  those  projects  or  companies  that  lack  funding  or 
struggle  to  raise  sufficient  capital  to  complete  their  investment  plans.  This  ensures  the 
maximisation of the EIB Group’s impact, through targeted strategies addressing clearly defined 
policy priority areas, which would be difficult to equal through the traditional generalist strategies 
available in the market. 

b) The Operator Securitisation Facility 

Building upon the EIB Group’s established role in financing European energy infrastructure, the 
Commission and the EIB Group intend to collaborate on an Operator Securitisation Facility (OSF). 
This initiative would aim to complement existing EIB instruments by evaluating off-balance sheet 
financing structures that could convert future regulated revenue streams into immediate liquidity. 
The  primary  objective  is  to  assess  how  institutional  capital  can  be  effectively  mobilized  while 
ensuring that physical assets remain under public ownership. By aligning financing durations with 
the long lifecycle of grid assets, the OSF could help mitigate refinancing risks and lower the total 
cost of capital, supporting grid development without placing undue pressure on energy tariffs. To 
accommodate  diverse  market  needs  and  operator  profiles,  the  proposed  framework  remains 
flexible. While large-scale grid operators may utilize standalone issuances, the facility is also open 
to  exploring  pooling  together  different  grid  operators  as  one  potential  option  among  others, 
particularly for smaller entities. 

3 

 
 
c) Hybrid Bonds  

The EIB supports investments by regulated utilities through the purchase of hybrid bonds5. The 
participation of the EIB Group as anchor investor provides a positive signal to other investors and 
boosts interest in the fundraising process.  It  also strengthens the financial position of operators 
because the instruments used are treated as equity, which is beneficial for their balance sheets.  

Action  2:  Supporting  access  to  finance  for  operators  via  the  loan  securitisation  and 
intermediated lending for small operators  

The  Commission  will  explore  with  the  EIB  how  to  better  support  access  to  finance  for  grid 
operators  by  freeing  up  banks’  lending  capacity,  allowing  banks  to  grant  new  loans  to  grid 
operators without direct reliance on public subsidies or state budgets, while crowding‐in private 
institutional capital. 

The goal is to incentivise commercial banks to grant new loans to grid operators,  including by 
providing support to promote securitisation of existing loan portfolios, in compliance with the EU 
securitisation framework, so that the participant banks use the freed-up balance sheet capacity to 
extend new loans to grid operators. The EIB Group could contribute to the initiative via its existing 
products, including securitisation – contingent on demonstrated demand.  

Additionally,  recognising  that  the  EU  DSO  landscape  consists  of  a  large,  diverse  number  of 
operators  with  different  sizes,  legal  environments  and  regulatory  regimes,  regional  and  local 
commercial  banks  can  play  an  important  role  to  overcome  the  fragmentation  of  the  sector  and 
support project aggregation for small operators. Following the recent announcement of the first 
Growth for Energy operation6,  the EIB will scale up this initiative, based on the specificities and 
needs of each Member State. This initiative will strengthen local banking networks’ capacity to 
lend to small operators. 

DE-RISKING VIA STRATEGIC USE OF PUBLIC FUNDS  

Public capital has a vital role to play in lowering risks and mobilising private finance for the clean 
energy transition. The MFF has been a key tool for de-risking clean energy investments, providing 
crucial  public  funding,  including  through  the  InvestEU  programme,  the  flagship  investment 
programme of the European Union. InvestEU supports clean energy investments in a transversal 
manner through guarantees, enabling investment in projects and enterprises targeting all stages of 
development, including start-ups to scale-up stage as well as deployment. So far, InvestEU has 
mobilised more than EUR 57 billion in energy related investments.   

5 Hybrid bonds are treated in part as equity, allowing operators to increase their debt capacity, and therefore investment 
capacity, without breaching credit limits or diluting existing ownership and control. 
6 In this operation, the EIB covers a percentage of the commercial bank risk exposure to loans for eligible energy 
projects at the municipal utility level, allowing the bank to allocate less capital to each sub-loan, increasing its lending 
capacity, see https://www.eib.org/en/press/all/2025-469-eib-and-commerzbank-join-forces-for-eur1-2-billion-energy 
4 

 
 
 
The  Commission  proposal  for  the  next  MFF  reaffirms  continued  support  for  clean-tech 
manufacturing  and its supply chain7 and energy transition projects, including at the R&I stage, 
amongst others by strengthening financial instruments to mobilise private investment. Financing 
for investments in energy is available notably under the NRPPs, the ECF, Horizon Europe and 
under the Connecting Europe Facility (CEF)  – Energy the budget  of which has been increased 
fivefold to c.a. EUR 30 billion. The Euratom Research and Training Programme will continue to 
be a key instrument to support nuclear research and innovation. 

In June 2025, the Commission adopted the Clean Industrial Deal State Aid Framework (CISAF).8 
setting  the  criteria  the  Commission  will  apply  for  assessing  Member  States  aid  proposals  for 
financial support to achieve the Clean Industrial Deal objectives and net-zero transition. CISAF 
will  enable  swift  aid  granting  for  projects.  It  contributes  to  EU  resilience  by  accelerating 
independence  from  fossil  fuels  imports,  industry  decarbonisation  and  new  clean  tech 
manufacturing investments, while preserving Single market integrity.  

The Commission encourages Member States to make use of CISAF to accelerate clean energy, 
non-fossil flexibility measures and capacity mechanisms, industrial decarbonisation measures, and 
contribute  to  de-risk  investment  in  these  priority  areas  via  dedicated  investment  funds.  The 
Commission  estimates  that  CISAF  could  mobilise  investments  within  the  range  of  three-digit 
billions  if  Member  States  continue  to  put  in  place  similar  schemes  as  those  set  up  under  the 
Temporary Crisis and Transition Framework (TCTF).9 

As  part  of  the  Clean  Industrial  Deal,  the  Commission  has  also  set  out  a  Recommendation  for 
designing  cost-effective,  simple  and  timely  tax  measures  that  stimulate  investment  in  clean 
technologies and industrial decarbonisation.10 

Action 3: De-risking innovative clean energy generation technologies and long-duration storage  

The International Energy Agency estimates that around 35% of the emission reductions required 
by 2050 will rely on technologies that are not yet available on the market.11 Success of the 
transition is structurally dependent on innovation — on bringing forward a new generation of clean 
energy technologies capable of delivering affordable, reliable and decarbonised energy at scale. 
The Commission proposes the following actions to support innovation:  

7 In line with the Net-Zero Industry Act and Critical Raw Materials Act Regulations 
8 For further background see: https://competition-policy.ec.europa.eu/about/contribution-clean-just-and-competitive-
transition/clean-industrial-deal-state-aid-framework-cisaf_en.  
9 Commission Staff Working Document accompanying the Clean Industrial Deal State aid Framework, (SWD(2025) 
850 final, 4.11.2025), p.22. 
10 Commission Recommendation of 2.7.2025 on tax incentives to support the Clean Industrial Deal and in light of the 
Clean Industrial Deal State aid Framework (C(2025 4319 final) 
11 International Energy Agency, Net Zero by 2050 – A Roadmap for the Global Energy Sector, 2021. 

5 

 
 
 
a)  Bring next generation of clean energy technologies to commercialisation  

The Commission in cooperation with the EIB Group will step up support to private investments in 
innovative clean, energy technologies (e.g. long-duration energy storage (LDES), floating wind, 
floating solar, ocean energy (wave and tidal), and airborne wind energy; novel forms of renewables 
deployment like agrivoltaics, advanced bio-based renewable solutions, carbon capture and storage 
(CCS) and carbon capture utilisation and storage (CCUS)) and for the expansion of established 
technologies into new markets with specific development risks (e.g. geophysical uncertainties for 
geothermal projects). This could include strengthening or extending existing mechanisms, such as 
venture debt and equity operations that can be eligible for support from the InvestEU programme. 
It will also explore investing in funds focused on clean energy technologies, including LDES. 

Furthermore, the de-risking of clean technologies, especially where we depend on high-risk third 
country providers, such as for solar inverters, needs to be reinforced at national and EU level. It is 
essential to perform a thorough analysis of cybersecurity risks for all deployments considered for 
financing, and define appropriate risk mitigation measures, when needed.  

The strengthened and extended Emissions Trading System will increase economic incentives for 
clean  energy  technologies  thus  reducing  financial  support  requirements.  The  Horizon  Europe 
programme and the Innovation Fund will continue to provide relevant grant support. For instance, 
under the work programme 2026-27 of Horizon Europe, the Commission is launching a EUR 600 
million flagship Call to support the Clean Industrial Deal and accelerate the technological maturity 
and  market-readiness  of  advanced  cleantech  and  industrial  decarbonisation  demonstrators. 
Furthermore,  under  the  upcoming  Strategic  Roadmap  for  Digitalisation  and  AI  in  Energy,  the 
Commission will launch an action on digitalisation of permitting to support the development of a 
pilot digital permitting portal with GenAI tools.  

b)  Small Modular Reactors / Advanced Modular Reactors (SMRs/AMRs) 

Several SMR concepts, including advanced modular and Generation IV designs, are progressing 
towards demonstration within this decade. The Commission is adopting today a Strategy for the 
development and deployment of SMRs in Europe12. If these technologies are to reach the stage of 
commercialisation  in  the  early  2030s,  we  must  address  the  financing  challenges  due  to  higher 
technology and deployment risks.  

The EIB Group will support, through venture debt and other financial products, the de-risking of 
investments in line with the SMR strategy, and the associated fuel cycle facilities and supply chain, 
which can be eligible for support also under the InvestEU programme13. 

12 Commission Communication “Future development and deployment of small modular reactors (SMRs) in Europe”, 
COM(2026) 117. 
13 The InvestEU guarantee cannot be used for operations focussing on the decommissioning, operation, adaptation or 
construction of nuclear power stations. 

6 

 
 
 
c)  Support scale up of new clean energy technologies through the Scale Up Europe Fund 

As part of the EU Startup and Scaleup Strategy published in May 2025, the Commission launched 
a privately managed and co-financed Scaleup Europe Fund to bridge the financing gap for deep-
tech  and  disruptive  scale-up  companies.  Energy  corporate  venture  funds  and  other  potential 
interested  investors  in  innovative  clean  energy  can  already  join  the  existing  Trusted  Investors 
Network in view of becoming investment partners in the European Innovation Council, which the 
Scale Up Europe Fund will complement. 

d)  Strengthen energy efficiency financing  

The  Commission  together  with  the  EIB  Group  is  working  on  strengthening  the  InvestEU 
Sustainability Guarantee Product, managed by the EIF. This increased capacity, together with the 
introduction  of  new  opportunities  through  co-investments,  will  consequently  allow  for  further 
access to the product for the decarbonisation and energy efficiency of SMEs.  

In line with the Affordable Energy Action Plan, the Commission and the EIB Group will launch 
in 2026 a pilot scheme aiming at leveraging EUR 500 million of financing to also accelerate the 
offer  and  uptake  of  “energy  efficiency  as  a  service”  models,  alongside  specialised  investment 
funds and with the potential support of the InvestEU Advisory Hub. This will complement the 
current EIB Group support to energy services, and to decarbonisation solutions for SMEs. 

In  the  next  MFF,  strengthening  energy  efficiency  is  to  be  supported  under  the  new  European 
Competitiveness  Fund.  An  energy  efficiency  Accelerator  instrument  could  use  ECF  tools  (e.g. 
combination of grants, repayable support, advisory services like project development assistance). 
It will support aggregation of investment projects, including for heating and cooling, to increase 
their access to capital markets, facilitating the development of a tradable energy efficiency market.  

The  EIB  Group  can  play  a  key  role  by  proposing  a  consolidated  offer  of  funding  (e.g.  loans, 
guarantees and grants), including through its own resources.  

Union support could be channelled through the ECF InvestEU instrument and instruments such as 
the Energy Efficiency for SMEs Initiative, and could take the form of repayable support, advisory 
support and grants.  

e)  Ensuring synergies and maximising effective public funding for the clean energy transition 

Member States also use national funds to derisk clean energy investments; however, the lack of 
coordination  amongst  them  can  lead  to  inefficiencies.  Harnessing  existing  frameworks  like  the 
Energy  Union  Task  Force  and  the  Energy  Transition  Investment  Council  (see  Action  4),  the 
Commission will facilitate the exchange of information and cooperation  among Member States 
regarding the deployment of their national public financing schemes (e.g. via national promotional 
banks). The aim is to provide political guidance on common priorities and optimise resource uses, 
prevent duplication in research and development and cross-border projects and encourage cross-
border cooperation, best practices sharing and pilot projects. 

7 

 
 
AN UPGRADED INVESTMENT DIALOGUE & STRATEGIC FUNDING 

Action 4: Establish an Energy Transition Investment Council  

The  Commission  will  establish  the  Energy  Transition  Investment  Council,  comprising 
representatives from investment (including institutional investors) and other financial institutions, 
Member States and high-level Commission officials. It will serve as a dedicated energy-focused 
platform for strategic feedback, helping to ensure that EU policies and funding align with investor 
needs and support long-term private investment in the energy sector, building on the experience 
of  the  Investors  Dialogue  on  Energy  established  in  2022.  It  will  ensure  its  activities  proceed 
without overlapping or impinging upon the future governance structures of the ECF. It will also 
encompass an innovation  and market  uptake dimension in  coordination with  the SET  Plan and 
explore potential synergies with the T-Med Investment Platform. 

The Energy Transition Investment Council will have a sub-group made up representatives of the 
EIB Group, International Financial Institutions (IFIs), National Promotional Banks and Institutions 
(NBPIs) and other national public banks to discuss the role of these institutions in strengthening 
the financing flows for energy projects and enhancing mobilisation of private capital.   

3  CONCLUSIONS AND WAY FORWARD  

Investing  in  the  clean  energy  transition  means  investing  in  our  security,  competitiveness  and 
sustainability.  This Strategy and its target  actions  aim to help  mobilise large-scale institutional 
private  capital,  based  on  the  recognition  that  additional  private  investment  in  the  clean  energy 
transition is needed for European competitiveness, security and decarbonisation.  

The Strategy builds upon the existing policy and financial framework. The European Union has a 
robust  and  predictable  legal  framework,  and  its  policy  agenda  is  clearly  set.  The  forthcoming 
energy and climate framework for the decade ahead will further clarify the scope and nature 
of the necessary investments. The Commission will present an Energy-System Needs Assessment 
for the Clean Transition (ENACT) and the post-2030 legislative package in Q4 2026, that will 
be based on a comprehensive impact assessment, to update the size and nature of the investment 
needs and provide further granularity and insights to support the decision making of investors and 
public administrations.    

Future National Energy and Climate Plans should distinguish clearly the contribution of public 
funding and the opportunity for private investments. This will help improve the understanding 
of public funding opportunities and private investment across Member States, ensuring targeted 
resource use. The MFF 2028-2034 and national public support schemes will be critical as a lever 
to unlock private finance.  

The successful implementation of the Clean Energy Investment Strategy necessitates the strategic 
alignment of EU funds and enabling policies, alongside collective engagement of EU institutions, 
Member  States,  institutional  capital  and  private  financial  entities.  The  EIB  Group  is  a  key 

8 

 
 
partner in the implementation of this Strategy intending to make an overall commitment of 
EUR 75 billion of financing over the next three years in support of the objectives of the energy 
transition  and  the  strategy.  The  InvestEU  programme  will  amplify  the  firepower  of  the  EIB 
Group and other implementing partners regarding high-risk operations.  

The Strategy can truly deliver when it is fully and effectively implemented. The Commission will 
execute and monitor progress toward the Strategy goals through the Energy Transition Investment 
Council  which  provides  a  structured  partnership  with  the  investment  community.  The  first 
meeting  of  the  Energy  Transition  Investment  Council  will  be  convened  by  the  European 
Commission in Q2 2026. Progress will also be monitored within the context of the Energy Union 
Task Force. 

The scale of the investment  challenge is  significant.  But  so is  the private capital  available that 
could be mobilised for the energy transition. Accelerating the investment pace is paramount 
for  the  EU  to  increase  its  competitiveness  and  deliver  on  the  Clean  Industrial  Deal  and  the 
Affordable Energy Action Plan. 

9