Energy efficiency in Italy is getting a boost, thanks to a €50 million loan.

The European Investment Bank (EIB) and BPER Banco Group are providing the cash for energy-saving projects to be implemented by businesses in the country.

The EIB has signed an agreement with Emilian banking group under the Private Finance for Energy Efficiency (PF4EE) EU instrument and the LIFE Programme, a joint initiative between the EIB and the Commission.

The scheme aims to generate at least €1 billion in additional energy efficiency investment in Europe.

Miguel Arias Cañete said: “I welcome the agreement to make €50 million available to Italian small businesses and unlocking investment in renewable energy and energy efficiency will create local jobs, protect the environment and strengthen economic growth. This is a great opportunity for Italian small businesses and I really home they will seize it.”

Last week the European Parliament and the Council struck an “informal deal” to change energy efficiency labels on household products to make them clearer.

Improved energy efficiency in the UK has helped offset low carbon policy costs on energy bills, saving £290 a year on average.