The Private Finance for Energy Efficiency (PF4EE) instrument is a joint agreement between the European Investment Bank (EIB) and the European Commission, which aims to address the limited access to adequate and affordable commercial financing for energy efficiency investments.

The instrument targets projects which support the implementation of National Energy Efficiency Action Plans or other energy efficiency programmes of EU Member States. The instrument’s two core objectives are to:

• Make energy efficiency lending a more sustainable activity within European financial institutions, considering the energy efficiency sector as a distinct market segment
• Increase the availability of debt financing to eligible energy efficiency investments

The instrument is managed by the EIB and funded by the Environment and Climate Action (LIFE) programme, which earmarked € 80 million to fund the credit risk protection and expert support services. The PF4EE instrument therefore provides:

• Portfolio-based credit risk protection provided as collateral (Risk Sharing Facility)
• Long-term financing (EIB Loan for Energy Efficiency) 
• Expert support services for financial intermediaries (Expert Support Facility)

The programme is running in the Czech Republic, Spain, France, Belgium, Italy, and Portugal, where SMEs can access the loans for energy efficiency measures through participating local banks/financial intermediaries. The programme expects to continue rolling out in other countries as and when local financial intermediaries sign up.