Europe’s SMEs set to accelerate low-carbon tech adoption through €200 million deal

The European Investment Fund (EIF) has taken a significant step toward accelerating the continent’s green transition, unveiling a €200 million guarantee agreement with BNP Paribas Leasing Solutions. This move is set to improve access to sustainable asset financing for small and medium-sized enterprises (SMEs) across France, Germany, Italy, and Spain—regions where the appetite for green innovation continues to grow, yet financing often falls short.

As the EU’s specialist arm for SME support, the EIF operates within the broader European Investment Bank Group. Its mission? To unlock capital by working through intermediaries—banks, leasing firms, and microcredit providers—who can channel support where it’s needed most. In this case, businesses are poised to invest in green mobility, renewable energy, and energy-efficient infrastructure, but lack the financial muscle to do so.

This deal is particularly noteworthy because it is backed by the EU’s InvestEU programme—a flagship initiative pooling multiple EU investment mechanisms under a single €26.2 billion budget guarantee. The aim? To catalyse at least €372 billion in public and private investment across sectors critical to the EU’s long-term competitiveness: climate, innovation, and digital transformation.

This is not just another finance deal—it’s the EIF’s largest multi-country guarantee focused on the energy transition. It’s also the first collaboration of its kind between the fund and BNP Paribas Leasing Solutions under the InvestEU umbrella, signalling growing momentum behind strategic public-private alliances.

Crucially, this guarantee is designed to address a persistent gap in the European financing landscape: Many SMEs and small mid-caps want to decarbonise, adopt cleaner tech, or electrify their vehicle fleets, but they’re too often constrained by conventional credit barriers. This partnership aims to change that narrative by boosting access to leasing options tailored to sustainable investments.

EIB vice president Ambroise Fayolle said: “This guarantee agreement with BNP Paribas Leasing Solutions fulfils the core mission of both the EIF and the EIB Group: accelerating innovation and competitiveness for European SMEs while promoting sustainable economic development through tailored financial solutions.”

BNP Paribas Leasing Solutions’ chief executive Neil Pein said: “We are proud to be part of this strategic partnership that will provide essential financing to SMEs and small mid-caps.

“This initiative aligns perfectly with our commitment to empowering European businesses with the financial tools they need to grow, innovate, and contribute to a more sustainable economy.”

The urgency behind such initiatives is only intensifying. According to BloombergNEF, the world must invest $8 trillion annually in climate tech by 2050 to stand a realistic chance of hitting net-zero targets. Yet the current trajectory is falling short.

Data from PwC paints a sobering picture: global investment in climate tech dropped from £62 billion in 2023 to just £44 billion in 2024. That’s a steep decline at a time when the opposite is needed.

Against this backdrop, the EIF–BNP Paribas agreement stands out not only for its scale and ambition but also for its timing. As financial institutions and governments search for scalable, high-impact ways to drive climate action, mechanisms like InvestEU—designed to de-risk and mobilise capital—will be pivotal.