The European Investment Bank (EIB) is investing €50 million (£36m) to develop renewable energy projects in the region.
Its first project will boost green technologies in France.
It signed an agreement with financing firm Omnes Capita, which will manage the Capenergie 3 fund.
It will focus on wind, solar, hydropower and heat networks, which will be developed by SMEs in the sector.
The project is part of the Investment Plan for Europe which aims to finance energy production with a global capacity of more than 500MW and expects to create more than 1,000 jobs.
EIB Vice President Ambroise Fayolle said: “Our first equity participation in this fund has a two-fold objective: to ensure the success of Capenergie 3’s first fund-raising while attracting other European and global investors.
“The growing competitiveness of renewable energy creates new investment opportunities that must be seized.”
The Capenergie 3 fund aims to leverage a total of €1 billion (£0.7bn).