The European Investment Bank (EIB) has signed an agreement to lend €250 million (£216m) for renewable energy projects in Germany.

The financing will allow Deutsche Kerditbank (DKB) to mobilise a total investment volume of €500 million (£431m), half of which will be provided for green projects.

Ambroise Fayolle, EIB Vice President responsible for operations in Germany said: “As part of its climate strategy, the EU bank is committed to dedicating at least a quarter of its loans to strengthening environmental protection.

“We can substantially reduce energy consumption in Germany and Europe if we manage to boost the use of renewable energy and considerably improve energy efficiency in the building sector. Both approaches are crucially important for sustainable environmental protection.”

Germany is said to have seen an increase in demand for domestic energy efficiency projects last year.