Published by Global Banking & Finance Review®
Posted on February 12, 2026
2 min readLast updated: March 1, 2026
Add as preferred source on GoogleThe EU plans new funding facilities to boost energy infrastructure, with EIB mobilizing private investments to meet climate goals.
By Kate Abnett
BRUSSELS, Feb 12 (Reuters) - The European Union and its lending arm, the European Investment Bank, are preparing a suite of new funding facilities to support energy infrastructure investments, a draft document seen by Reuters showed.
The plans are being developed as EU leaders face pressure to reduce energy costs for households and European industries who say hefty bills mean they cannot compete globally.
A draft European Commission strategy, seen by Reuters, outlined plans for the EIB to mobilise more private investment in the energy sector - where investments in power grids and energy-saving renovations fall short of levels needed to meet EU climate and energy goals.
Under a planned loan securitisation scheme, the EIB would facilitate the transfer of existing loans from banks' balance sheets - freeing up lending capacity for new loans. Currently, some banks' concentration limits prevent them from lending more to power grid operators, the document said.
A second facility would provide off-balance sheet financing by turning the value of grid operators' future revenue streams into upfront cash, so they can access more finance for large infrastructure upgrades.
"Many operators frequently face liquidity constraints and limited room for traditional debt," the draft said.
Another scheme would increase EIB guarantees to banks so they can lend to small energy distribution grid operators. It would also help small operators club together to form joint ventures, to standardise financing terms that are usually off-limits to small players.
The draft document did not specify the size of the new facilities, which could change before the Commission is due to publish the plan in March, with some facilities expected to be implemented this year and others next year.
A spokesperson for the EIB declined to comment on the document, but said: “The EIB stands ready to work closely with the European Commission to accelerate investments in Europe's energy security and green transition."
A Commission spokesperson declined to comment.
The EIB invested 33 billion euros in energy projects in Europe last year, a record high.
(Reporting by Kate Abnett; editing by Philippa Fletcher)
Energy infrastructure refers to the physical systems and structures that generate, transmit, and distribute energy, including power plants, transmission lines, and distribution networks.
The European Investment Bank (EIB) is the lending arm of the European Union, providing financing for projects that promote EU policy objectives, including sustainable energy and infrastructure.
Off-balance sheet financing refers to a method of financing that does not appear on a company's balance sheet, allowing for improved financial ratios and less apparent debt.
A loan securitisation scheme is a financial process where existing loans are pooled together and sold as securities to investors, providing liquidity to lenders.
EIB guarantees are financial assurances provided by the European Investment Bank to banks, enabling them to lend more to smaller operators in the energy sector.
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