French energy group EDF and asset management firm Amundi have set a target to raise €1.5 billion (£1.2bn) together to fund energy efficiency and renewable projects.

They are to create a joint management company to raise the cash from institutional and retail investors and manage funds intended to finance the projects on behalf of third parties.

The firms stated: “EDF and Amundi aim to offer the market new funds dedicated to the production of renewable energy and business-to-business economies, including electro-intensive industries.”

Renewable energy projects that will be funded include wind, solar as well as small hydro.

The creation of the management firm is subject to approval from the relevant regulatory authorities, the companies said.