A new finance deal between an EU and Chinese bank is expected to generate up to €1bn (£874m) of investment into energy, water, transport and green industry projects.

The European Investment Bank (EIB) and Eximbank have agreed a €300m (£262m) loan package, with the rest to be raised by other financiers. 

The initiative is expected to support a range of long-term projects that can reduce greenhouse gas emissions and improve climate resilience in China, such as wind farms, biomass energy, sustainable transport and water infrastructure.

Jonathan Taylor, EIB Vice President for East Asia siad: “Tackling climate change and reducing pollution is a global challenge and the EIB, as the EU Bank, is committed to supporting the Paris Climate Agreement.

“[The deal] reflects the shared commitment of China and Europe to reduce energy use, cut emissions and protect the environment.”