Enabling the decarbonisation of industries in Occitanie and beyond  

Regional industries are under growing pressure to reduce energy use and emissions while maintaining competitiveness. For many small and medium sized enterprises, the main obstacle is not a lack of ambition but a lack of capital, technical and financial expertise, and time to manage complex decarbonisation projects. This reality led to the creation of Fiteo, a pioneering initiative launched in 2021 by the Regional Energy and Climate Agency of Occitanie (AREC Occitanie). 

Fiteo was designed to help companies invest in energy efficiency and low-carbon technologies without needing to mobilise their own capital. Rather than leaving firms to navigate technical assessments, funding opportunities and administrative procedures alone, AREC Occitanie plays a central enabling role at every stage of the process. 

An innovative financial solution 

Fiteo is a third-party financing mechanism that turns complex decarbonisation ideas into concrete investments. It builds solutions for companies that cannot easily finance projects on their own. Instead of taking out loans or using internal resources, AREC Occitanie finances the investment directly and remains owner of the installed equipment.

“For many companies, the barrier to decarbonisation is not ambition but complexity. Local and regional Energy Agencies have a key role to play in removing that barrier by structuring projects, securing finance and enabling investments that strengthen both performance and competitiveness.”

— Stéphane Péré, Vice-President for Industrial Decarbonisation & Director General of AREC Occitanie (FR)

This de-risks the investment for the company by enabling them to repay it over time through a leasing or service contract, with payments broadly aligned with the energy savings achieved.

The process starts with the company, which identifies a need such as reducing energy costs or modernising equipment. AREC Occitanie works with the beneficiary to define the project and takes on the full development burden. Specialised technical partners then carry out feasibility studies and design appropriate solutions to ensure real and measurable savings. 

Once the technical basis is established, AREC Occitanie builds the financial architecture. Several types of partners are mobilised:  

• Public funding bodies are involved to reduce the overall cost of the project. AREC Occitanie identifies available subsidies and integrates them into the financing plan.  

• Financial institutions and banks provide long-term debt. The agency negotiates directly with these partners to secure appropriate financing conditions.  

• Complementary financial mechanisms can also be activated when relevant, such as the use of carbon compensation schemes or targeted support from local authorities. 

The innovation of Fiteo lies in its capacity to aggregate and coordinate a wide range of partners around each project while providing confidence to investors. As a neutral and trusted public actor, AREC Occitanie brings together technical expertise, public support and private financing into a single coherent framework, ensuring that projects are both technically robust and financially viable. 

This integrated approach allows companies to benefit from the combined expertise of engineers, financiers and public authorities without having to handle the complexity of these interactions themselves. For many beneficiaries, this support is decisive. Without Fiteo to structure the project, assemble the financing and manage the process from start to finish, these decarbonisation investments would simply not be feasible. 

Lessons learned and how to reproduce it 

A key insight from the implementation of Fiteo is that enabling structures matter as much as financing. Simply offering capital does not guarantee investment. Companies need practical support to navigate technical and administrative complexity and to access diverse funding sources. 

Several lessons from Fiteo worth considering to enable similar approaches:  

1. A trusted intermediary unlocks value: Regional energy agencies with a public mandate and technical capacity can bridge the gap between public incentives, private capital and company needs. 

2. Combine technical and financial support: Projects often stall due to uncertainty and complexity rather than cost alone. Integrating engineering expertise with financial structuring is essential to move from ideas to implementation. 

3. Build flexibility into project structures: Each company’s situation is unique. Tailored financing arrangements and adaptable support frameworks are key to success. 

4. Simplify regulatory and administrative requirements: Streamlined procedures at national and EU level would make replication faster and more cost-effective. 

This best practice is extracted from our publication ‘Sustainable Regions in Action‘. Discover more best practices here!