The LIFE Programme is the EU’s way of turning policy ideas into real-world impact. By funding projects that help businesses cut energy costs, support youth involvement in energy communities, and drive sustainability, it bridges the gap between ambition and action. But what does this look like on the ground? This article explores how LIFE projects are making a difference such as helping industries decarbonise, tackling funding barriers, and shaping a greener future for Europe.

Projects such as those funded by the LIFE programme are one of the European Union’s strategies to implement policy across the member states. Consortia of private companies, business representative organisations and government institutions team up from across the member states to jointly draft project proposals and to then submit them as part of a bidding process to win LIFE funding. Once a consortium successfully wins LIFE funding, the project can then be implemented over a period of some years. These projects serve as tools to help European industry to decarbonise and become more competitive through offering EU-funded services, resources and tools assembled by the consortia. Similarly, many LIFE-funded projects entail a policy driven component.

The operation of LIFE-funded consortia is an activity which YES-Europe engages in itself. As a youth organisation dedicated to the green energy transition, its members collaborate from across the continent to develop issues of policy, identify pain points and present solutions worth lobbying for. Through LIFE projects such as POWERYOUTH, YES-Europe is able to participate directly in the implementation of European policy on the ground, while making its own unique contribution. Tackling the barriers preventing youths from participating in energy communities.  A study released by the consortium highlights regulatory and information gaps as some of the primary barriers to youth participation, presenting fertile ground on which to sharpen policy initiatives.

Many projects, like POWERYOUTH, focus on fostering collaboration and providing tools to facilitate transitions in specific sectors or segments of society. Similarly, other initiatives under the programme address challenges faced by businesses in achieving energy efficiency. Led by Eurochambres, the representative for chambers of commerce across Europe, the EnergyEfficiency4SME (EE4SME) project represents one such example. 

With 23 consortium partners from across Europe, the project aims to assist a range of manufacturing companies and hotels to lower their energy bills by funding energy audits and offering financing support to implement energy efficiency projects. However, the project also entails two policy-driven economic studies based on a data collection exercise implemented by the project partners over the lifetime of EE4SME. The first economic study, commissioned by the Malta Business Bureau (MBB), a consortium member, was released in October 2023.

The project, as well as the report itself, is aimed at tackling the potential for decarbonisation arising from SMEs. Small and medium-sized enterprises (SMEs) represent 99% of businesses in the EU, as stated in the report, though only 64% are even taking action to save energy. The experience of organisations such as MBB to help businesses to decarbonise has led to several intriguing policy conclusions around the obstacles which SMEs face. Recognising that the implementation of renewable energy projects must also be preceded by a drive to reduce energy consumption, or to consume it more efficiently, it becomes pertinent to address the funding gap faced by industry. For energy efficiency, at the time of the EE4SME report, the European funding gap stood at €185 billion.

Nonetheless, various grants are offered by governments amongst the various member states of the European Union to help incentivise businesses to invest in energy efficiency. This efficiency does not merely refer to insulation or modifications to the building envelope, but also refers to any action which reduces emissions, including but not limited to upgrading to more energy efficient machinery, using less water, or making use of waste heat in the manufacturing process. These grants, however, can face low uptake by SMEs. 

A report commissioned by Malta’s Energy & Water Agency (EWA), the drafting of which was carried out by MBB, sheds light on some of the reasons why. The report, titled Energy Trends in Malta’s Manufacturing Industry reveals that many SMEs lack the human resource capacity to go through the bureaucratic process of understanding what funding is available and matching it to potential project ideas, and actually applying for it. The human resources and technical knowledge needed can sometimes be burdensome for SMEs struggling to survive on a day to day basis, particularly those which are not fully informed of the potential savings opportunities that might be available from energy projects. It is for this reason that projects such as EE4SME are awarded LIFE funding to provide advice to businesses to help them to bridge the gap.

Being aware of the European Union’s funding streams and the potential opportunities from taking advantage of energy audits, grants and funding are all key ingredients for a more competitive industry. At the same time, ensuring that the projects which are carried out to support businesses providing value for money to the European Union presents a challenge on its own. Such projects compete with one another to bid for project funding, and the internal capabilities of consortium members may not always reflect the real needs of industry. Nonetheless, the process and procedures behind such projects continue to be refined. If the LIFE programme is one of Europe’s strategies for policy implementation, it offers a dynamic arena with various case studies with resources and tools which may offer many policy insights, past, present and future.