Energy efficiency is at the centre of EU and global efforts to achieve climate neutrality, and to reduce greenhouse gas emissions across all sectors. The Еnergy Efficiency First principle is one of the five pillars of the European Union energy strategy, and according to the IEA, energy efficiency is the single largest measure to avoid energy demand in their “Net Zero Emissions by 2050 Scenario”. At COP28, 133 governments pledged to double the global rate of energy efficiency improvements by 2030. But even though energy efficiency receives significant attention in government policies, regulations, and energy-saving programmes, in practice it often remains overlooked. Many decisions, projects, and assets are planned and financed without fully exploring cost-effective energy efficiency measures, locking in unnecessarily high energy demand for years to come.

Improving energy efficiency not only plays a crucial role in addressing climate change and conserving resources, it can also create more local jobs, boost productivity and innovation, enhance competitiveness of businesses, improve air quality, and ensure energy security. By optimizing energy use in industries, buildings, and transportation, organizations can lower operational expenses, reduce environmental impact, and help build more resilient economies.

The need to scale-up investments into energy efficiency is increasingly being recognized but this involves both optimizing the use of available public funds, as well as increasing private finance flows. Financial institutions are pivotal to turn this problem around and help channel resources towards energy-efficient technologies and infrastructure. To achieve this, it is crucial to strengthen the market for energy efficiency and stimulate demand, ensuring that the investment returns – whether in industry, services, or residential sectors – are better understood and recognized. Embedding energy efficiency considerations into investment strategies overall can also drive and scale sustainable finance for net-zero goals. UNEP FI has been actively involved in a number of initiatives to promote energy efficiency finance, collaborating with investors, banks, insurers, and other key stakeholders. More information about key resources and ways for financial institutions to get involved is provided below. 

 

Get involved

For financial institutions: Join the European Energy Efficiency Financing (EEEFIN) Coalition

UNEP FI is supporting the European Energy Efficiency Financing Coalition – a platform for the European Commission, EU Member States, financial institutions, and industry to collaborate on energy efficiency financing. Building upon the successful work of the Energy Efficiency Financial Institutions Group (EEFIG), the Coalition seeks to provide an updated and effective framework for energy efficiency financing, linking policy makers both at the European and national level with financial market players, whose participation is vital to finance the EU energy transition and fill the investment gap, with specific action-oriented initiatives on national markets. The Coalition welcomed its first 49 financial institutions (FI) members in October 2024. Banks, investment firms, asset managers, and insurance companies doing business in at least one EU country interested in joining the Coalition are invited to send an expression of interest by 30 September 2025.

For PRB and EEEFIN Coalition members: Join our capacity-building workshops on energy efficiency finance (Europe focus)

UNEP FI is hosting a dedicated workshop series on financing energy efficiency, delivered under the Principles for Responsible Banking (PRB) Implementation Support Programme. Designed for banks, the webinars offer a deep dive into the current challenges of financing energy efficiency in the European context, along with practical tools to address them. The series explores commercial and residential real estate, and financing energy efficiency in SMEs, featuring relevant policy updates, interactive discussions, and case studies. By participating, institutions gain practical insights and strategic guidance to better integrate energy efficiency finance into their operations and navigate emerging market trends. The series is open to both PRB and EEEFIN Coalition members. To learn more about UNEP FI’s work on energy efficiency or get involved, please contact Ana Bachurova.

 

Resources
The Circular Economy as an Enabler for Responsible Banking series (2024) helps banks consider circular economy solutions as part of their climate transition plans to achieve net-zero emissions or climate mitigation targets, though a reduction of their financed emissions and through transition finance strategies. Includes a Buildings and Construction sectoral supplement.
The publication Banking on Green Buildings (2024), written in partnership with the GlobalABC, explores how banks can play a key role in making buildings more energy efficient and contribute to their climate and resource efficiency goals, including those made under the Principles for Responsible Banking.
The report Climate Target Setting for Real Estate Sector Financing (2023) was developed by members of the Net-Zero Banking Alliance (NZBA) to assist banks by outlining the choices they make when setting climate-related targets for financing in particular sectors of the real economy. This includes key considerations in relation to the scope, portfolio metrics, data, and scenarios, emerging practices, common challenges and policy, data, and other gaps.

The Principles for Responsible Banking (PRB)’s Guidance on Resource Efficiency and Circular Economy Target Setting (2023) includes a common pathway to impact and core indicators to guide good practices in the banking sector, measure progress, and foster active collaboration to drive results and improve resource efficiency for energy, water, and waste.
Some notable Energy Efficiency Financial Institutions Group (EEFIG) resources include: