Increasing resilience in European small businesses through energy efficiency

“SMEunited calls on all governance levels – the EU, Member States, regions – to implement targeted measures for SMEs to tackle the energy crisis,” stated Véronique Willems, SMEunited Secretary General, at the high-level event, organised jointly by the International Energy Agency (IEA) and the European Commission. 

“Currently, more and more SMEs report that their fixed price energy contracts come to an end, and they have to conclude new contracts with price increases up to 1000%. This leads to unpayable energy costs, and many SMEs decide to reduce or stop production. In addition, the shutdown and relocation of certain industrial activities have a negative impact on the SMEs in the value chain,” stressed Ms Willems. According to her, all the initiatives taken so far at EU level are highly necessary and measures have to be implemented as soon as possible. 

Ms Willems supported the importance of energy efficiency to work through the current challenges. She emphasised that the incentives to save energy and increase energy efficiency should be reinforced.

From this perspective, she raised 5 points. First, the targets to reach in the mid-term – by 2030 – must be set and small businesses must be able to take investment decisions to reach the targets now. Secondly, SMEs require neutral and clear information on available technologies and measures to reach these targets and improve their energy efficiency. Next, given many SMEs are over-indebted, appropriate instruments must be put in place to ensure access to finance. The National Recovery and Resilience Plans have to be reviewed and funds aiming at the green transition increased when already used. The same goes for InvestEU, where the SME window has already been oversubscribed and the Sustainability window is too complex to be accessed by SMEs. Fourth, entrepreneurs and their employees must acquire the necessary skills and energy management systems must be tailored to SME characteristics. Finally, Ms Willems refers to the Covenant of Companies for Climate & Energy as a source of information for SMEs to get ahead with their energy transition. 

The event aimed to highlight the support that can be given at EU, national and local levels to SMEs in their struggle with high energy prices and supply risks. Participants at the online meeting discussed how governments and small-sized enterprises can work together to increase energy efficiency, reduce energy bills and secure a sustainable energy supply.

Recording of the event is available here