The European Commission is providing fresh funding worth €35 million (£31m) to support sustainable energy and green transport projects.
The funding will continue the work of the European Local Energy Assistance (ELENA) facility, implemented by the European Investment Bank (EIB), which provides grants for public and private projects, covering up to 90% of eligible project development costs.
Under the new agreement, the initiative will provide €30 million (£26.4m) for sustainable energy projects and €5 million (£4.4m) for sustainable transport.
This is expected to further stimulate investments in energy efficiency, especially in buildings, heat networks and street lighting.
Thomas Östros, EIB Vice President in charge of energy said: “Accelerating energy efficiency investments in all sectors is crucial, if we want to reduce carbon emissions and mitigate climate change.
“Over the past 11 years, ELENA has shown that sound technical support is important for investment mobilisation and project implementation. I warmly welcome the continued trust of the European Commission and I am confident that our experts will identify projects in which ELENA grants will make a real difference. It is joint efforts like these that pave Europe’s path to a sustainable future.”