The European Investment Bank (EIB) and several French commercial banks have agreed to lend €250 million (£206.6m) for the development of biomass-to-energy and waste recycling and recovery projects in France.
The agreement will allow the nation to use forest or agriculture-based biomass as well as household and commercial waste to generate electricity, biogas and heat.
The cash will also be used to support work on renovating and extending urban heating systems.
Two energy recovery projects have already been approved for financing this year – which will have the capacity to treat around 173,000 tonnes of waste in total every year.
The EIB said in a statement: “The signing of this agreement… is fully in keeping with the European Union’s 2020 Strategy, which is aimed at developing secure, competitive and sustainable energy supplies and also contributes to the EU objectives of sustainable growth and job creation.”