A London-based bank is providing €7 million (£5.9m) for the roll out of cleaner buses in the Serbian city of Novi Sad.

A loan agreement has been signed between the European Bank for Reconstruction and Development (EBRD) and the Public Transport Company of Novi Sad, which will allow the firm to buy new buses that run on compressed natural gas (CNG).

That’s in comparison to the use of diesel buses, which are significantly more polluting than using CNG.

The CNG-powered buses will replace part of the old diesel bus fleet and serve the busiest urban bus routes in the city and are expected to help reduce carbon emissions by at least 70%.

The EBRD is also supporting the city in improving the energy efficiency of the iconic building SPENS, a sports and business centre and is looking to step up its green investments.