The European Commission introduces its new clean energy investment strategy to mobilize private capital, aiming to bridge a €660 billion annual funding gap for the energy transition.
How the EU Commission aims to close a €660 billion/year gap
As the old adage goes, from words to deeds is a long road. The energy transition is no exception: a wide gap still separates political ambition from the capital needed to make it happen. This divide is further deepened by an uncertain scenario that frightens investors. To provide new certainties, on March 10, the European Commission presented its clean energy investment strategy (Clean Energy Investment Strategy), a plan to finance the transition by mobilizing private capital.
The goal? To close that gap of approximately €660 billion per year until 2030, necessary to support the decarbonization of the energy system. “To make the most of our energy sources, Europe needs a radical change in its energy system and infrastructure,” explains the EU Executive in its press release.
The clean energy investment strategy
The strategy will help reduce project risks and mobilize private financing for grids, innovative technologies, and energy efficiency.
To achieve the mentioned milestones, the Commission has outlined four main lines of action focused on: infrastructure, technological de-risking, energy efficiency, and institutional cooperation. The European Investment Bank (EIB) Group plays a cross-cutting role, committing to provide over €75 billion in funding over the next three years to support the strategy’s objectives.
Grid infrastructure
Grid infrastructure represents the backbone of the energy system. That’s why the strategy introduces specific tools to support Transmission System Operators (TSOs) and Distribution System Operators (DSOs). These include an equity platform where the European Investment Bank will commit approximately €500 million to co-invest in critical infrastructure projects alongside private investors.
Furthermore, the EIB will act as a reference investor for the purchase of hybrid bonds, which are treated as equity, improving operators’ borrowing capacity. An Operator Securitization Facility (OSF) is also planned, a tool to transform future regulated revenue streams into immediate liquidity, attracting institutional capital without losing public ownership of assets.
De-risking for innovation
The new strategy aims to accelerate the commercialization of innovative but not yet mature technologies through targeted investments in sectors such as long-duration energy storage (LDES), floating wind and solar, ocean energy, and carbon capture (CCS/CCUS). The communication also mentions the use of venture debt and other financial products to reduce risks associated with the development of the modular nuclear supply chain, along with a privately managed fund to bridge the financing gap for deep-tech companies in the energy sector.
Energy efficiency
Regarding energy efficiency – an essential but often underestimated aspect – the Commission announces the launch of a pilot project in 2026 to mobilize €500 million. The initiative will allow companies, especially SMEs, to implement efficiency solutions without upfront costs, repaying them through the savings achieved. The creation of an Energy Efficiency Accelerator is also planned within the next EU budget to aggregate investment projects and facilitate their access to capital markets.
Cooperation
The clean energy investment strategy proposes establishing, in the second quarter of 2026, the Energy Transition Investment Council (ETIC): a permanent dialogue platform among the Commission, Member States, EIB, and institutional investors to align EU policies with the needs of the financial market.
