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To contribute to the design of the energy service companies (ESCOs)' environment in the Mediterranean countries, mainly focusing on the constraints this company's environment face and the actions that can fulfil its needs and aims, taking also into consideration the opportunities and threats emerging from the energy liberalization and climate change.

The methodology that was followed (based in a large part on the context of two projects targeted to the Mediterranean region and funded by the European Commission) incorporated four steps, the desk analysis for energy efficiency potential in the Mediterranean, the data collection, the assessment of the constraints and the final assessment of the ESCOs' environment.

Provides information regarding the current status of ESCOs' development, in the dimensions of the ESCOs' environment (political/legal, economical/financial, social/cultural and technological), both in the European Union (EU) (Cyprus, France, Greece, Italy, Malta and Spain) and non‐EU (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and Turkey) Mediterranean countries.

There are no papers investigating the activation environment of ESCOs in a coherent and integrated way in the Mediterranean. This paper provides to decision makers a supportive framework for policy design and formulation of policy priorities for ESCOs development in the region.