The European Investment Bank (EIB) has unveiled a new investment of €50 million (£42.9m) to improve the energy efficiency of Spanish and Portuguese homes.
The move follows a partnership with the Unión de Créditos Inmobiliarios, a joint venture between Banco Santander and the BNP Paribas Group.
The funding will help grant new green and sustainable loans to individuals that are investing in building renovations.
The investment is estimated to result in a total energy saving of 57.3GWh a year, which represents a carbon dioxide reduction of 10,269 tonnes a year.
EIB Vice President Ricardo Mourinho Félix said: “Around 75% of buildings currently have low energy efficiency and, more critically, almost 85-95% of them will still be in use by 2050.”