Investing in Europe’s healthcare energy transition

(This article was published by Healthcare Business International on 14 August 2025 and is available in English only.)

Healthcare generates about 5% of global carbon emissions, with hospitals among the most energy-intensive buildings. Ageing infrastructure, high energy costs, and strict EU decarbonisation targets make upgrades essential, but tight budgets mean the key challenge is not just what to improve, but how to fund it.

For-profit hospitals such as Ramsay Santé, Elsan, and Fresenius Medical Care are increasingly using ESG-linked financing tied to outcomes like CO₂ reduction, patient satisfaction, and staff wellbeing. Private equity firms are also incorporating ESG into healthcare investments. For example, Luxembourg-based CVC Capital Partners arranged a €1 billion loan for Finnish hospital provider Mehiläinen, with the funding conditional on meeting targets to improve care quality and reduce carbon emissions. The firm has also pledged to align a large share of its investment portfolio with science-based emissions reduction goals. Other PE firms, including Ardian, KKR, Nordic Capital, and Primo Capital, have structured ESG-linked loans or funds connecting financing to environmental and social KPIs.

Andrey Maramzine, Chief Sustainability Officer at BNP Paribas Leasing Solutions, says Europe needs innovative approaches to financing green infrastructure. He highlights the Product-as-a-Service (PaaS) model, which enables customers to access products via subscription, for example leasing heat pumps or energy systems through flexible agreements, allowing sustainable upgrades without relying solely on public funding.

HBI spoke with Maramzine to learn more about the PaaS model and explore the investment opportunities in Europe’s green healthcare infrastructure.

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