The European Investment Bank, the European Union's long-term financing institution, has concluded a £100 million (EUR 160 million) in financing arrangement with Barclays Bank PLC to support small-scale affordable energy saving schemes in U.K. homes.
The finance will go towards small-scale energy projects linked to the UK Government's Affordable Warmth Programme to help households reduce excessive spending on heating by supporting investment to modernise old and inefficient heating systems. The initiative is targeted to improve heating standards in over one million households throughout the U.K. in the coming six years.
The scheme is being launched by Transco, the regulated national gas network operator, in co-operation with UK local authorities, Housing Associations and banks and leasing houses. Through the proposed operation, the EIB will contribute to the Government's initiative by further improving the financial conditions offered to final beneficiaries.
EIB Vice President Peter Sedgwick said: "The Affordable Warmth initiative will not only improve living standards and health, it will also create employment opportunities and have a positive impact on regional development areas where housing standards are generally poorer. The investments will contribute to Government energy efficiency programmes and help meet the UK's targets for reduction in CO2 emissions. Barclays is well placed to promote the proposed energy efficiency scheme."
The financing arrangement with Barclays is in the form of an EIB global loan - line of credit - for supporting small-scale investment schemes. The loan continues the long-standing financing relationship between the EIB and Barclays.
The European Investment Bank finances capital investment furthering EU integration, in particular: regional development, trans-European networks in transport, telecoms and energy, industrial competitiveness and integration, small and medium sized enterprises, environmental protection, energy security, and health and education projects. It also operates outside the EU within the framework of the EU's co-operation external policy. Owned by the EU Member States, the EIB raises its funds on capital markets (AAA issuer). In 2000, the EIB lent some EUR 36 billion, of which EUR 3.3 billion (some £ 2.1 billion) in the UK.