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  • The EU bank EIB has signed a SEK 2.5bn (circa 230m) loan agreement with the City of Stockholm to support energy-efficient housing.
  • This investment will help provide 1500 new energy-efficient residential housing units in the Swedish capital.

Energy prices are on the rise, as is the demand for energy independence. At the same time, there is a need for modern, affordable, climate friendly housing in Sweden, and elsewhere. Therefore, the EU bank, EIB, supports this major housing project in the capital of Sweden, and the city’s urban development plans. The City of Stockholm and surrounding municipalities is home for nearly 25% of Swedes. It is also the largest urban agglomeration in the Nordic region. Increasing the stock of new public rental housing in existing urban areas, like in the capital of Sweden, will improve the social mix in Stockholm, a city that has been growing rapidly. Thereby, building these more than 1500 residential units will promote affordable housing. These new buildings, and renovation of a further 200 units, will contribute to the solutions for a complex demographic, social and economic situation in the biggest, economically strongest, and rapidly developing region of Sweden.

Cheaper energy bills

The high-quality and energy efficient housing accommodation with targeted high-energy efficiency standards will lead to lower operating- and energy costs. The project excels in environmental performance by targeting 25% lower energy efficiency levels than required for Near-Zero-Emissions-Buildings (NZEB). At the same time the new residential housing units, which constitute 95% of the project, are directly classified as Climate Action-components.

The housing units will be constructed by the three housing companies owned by the municipality and are complementary to private building and renovation activities. Swedish municipalities have a legal obligation to provide rental housing without discrimination, to ensure fair and equal treatment of all of its residents. As a result, Swedish municipalities are owners to a large stock of rental housing units, and therefore play an important role for the transition to energy efficiency.

EIB Vice President, Thomas Östros, responsible for Sweden, remarked: “Tackling climate change is a top priority for the EIB. Investing in energy efficiency is one of the most cost effective and rational ways to save energy. Therefore, we are pleased to support the City of Stockholm in their efforts to provide smart, sustainable and low-energy housing. This project is not only a step forward in sustainable urban development in Sweden, but should also lead to a reduction of energy consumption for the inhabitants, thereby lowering their bills.”

Treasurer of the City of Stockholm, Sofie Nilvall, noted: “The city of Stockholm values the longstanding relationship it has with the Bank, being a provider of long-term loans, which matches the funding needs of the City. The EIB part-financing contributes to the diversification of the City of Stockholm's borrowing portfolio, and enables the City of Stockholm to finance its urban development projects, which at the same time is good for the climate and for its citizens.’’

Policy context

The financing of this project is in line with the Bank's lending priorities on Energy Efficiency and Climate Action, and aligned with the Paris agreement. Further, the project contributes to Sweden's National Energy Climate Plan, as well as to the City of Stockholm’s Environmental and Climate plans. At the same time it supports the EU and national targets for energy efficiency. Notably, the project is aligned with the EU Energy Performance of Building Directive (EPBD) and Energy Efficiency Directive (EED), the EIB Energy Lending Policy 2019, and also aiming for alignment with the EU Taxonomy criteria for buildings’ new construction.   

Background information

About the European Investment Bank

The European Investment Bank (EIB) is the bank of the European Union, owned by the 27 EU Member States. It is active in some 160 countries and is the world’s largest multilateral lender for climate action projects. The Bank provides long-term financing for economically sustainable investments to contribute to the European Union’s political objectives. Ensuring a just transition for all is one of the EIB Group’s four overarching objectives in its Climate Bank Roadmap 2021-2025. The EIB’s ambition is to support €1 trillion of climate action and environmental sustainability investments in the decade to 2030, and align all its new operations with the goals and principles of the Paris Agreement.

About REPowerEU

REPowerEU is the European Commission’s plan to make Europe independent from Russian fossil fuels well before 2030, in light of Russia's invasion of Ukraine. The REPowerEU plan sets out a series of measures to rapidly reduce dependence on Russian fossil fuels, and fast forward the green transition, while increasing the resilience of the EU-wide energy system. It is based on: A) Diversifying, identifying alternative energy supplies. B) Saving Every citizen, business and organisation can save energy, C) accelerating clean renewable energy, speeding up the green transition and spur investments inti renewable energy.

About the City of Stockholm

For more information, please visit City of Stockholm