The European Investment Bank (EIB) is providing €300 million (£266m) of financing for the development of energy efficient homes in Sweden.
Heimstaden Bostad will use the funds to develop eight residential properties with “high energy performance standards” in five cities, resulting in around 3,300 new affordable homes to rent.
The EIB says demand for social infrastructure, including housing, in on the rise in Sweden and the project will help address the “severe shortages” of residential units in the main cities.
It adds the project support national and European targets for energy efficiency and contributes to the reduction of carbon emissions.
EIB Vice President Alexander Stubb said: “We must not underestimate the importance of energy efficient housing in fighting climate change; our homes and office buildings are the biggest emitters of CO2, bigger even than cars.
“With the demand for affordable housing continuously on the rise in Sweden, I am glad that the EIB can contribute towards alleviating the issue – and doing so with sustainable housing units.”
Part of the investments include community services such as a new library and homes dedicated to elderly care.
Patrik Hall, CEO of Heimstaden added: “As a long term investor, to develop and manage affordable housing with high-energy performance standard is part of our DNA. This project will create value both from a social as well as from an environmental aspect and it is with great pleasure we proceed with this important project in co-operation with the EIB.”
