The European Investment Bank (EIB) has provided the second installment of a €270 million (£227m) funding to a Viennese firm for energy efficiency measures.

The cash will help Wiener Wohnen – an apartment management company believed to be the largest in Europe – improve the thermal energy efficiency of municipal housing.

Initial funding under the 2011-2014 investment programme was provided two years ago followed by the second agreement of €120 million (£101m) signed yesterday.

The financial support will enable a start to be made on 124 projects, with the efficiency measures expected to significantly reduce heating costs and easing the financial burden for tenants.

EIB Vice-President Wilhelm Molterer said: “On the issue of energy efficiency, we in the EU still have a great deal to do. We still have a long way to go to exhaust the great potential that exists for saving energy. The municipal residential construction sector in particular can make a substantial contribution towards achieving a better energy balance.”

The EU aims to improve energy efficiency and reduce carbon emissions by 20% by the end of the decade.