The EIB signed a EUR 400m loan to Renault on 27 May, as the car maker prioritises research and development for a new generation of environmentally-friendly and affordable cars.

Philippe de Fontaine Vive, EIB Vice President, hailed the agreement, saying that “cutting edge technologies are a beacon for the future in terms of sustainable development and competitiveness. By supporting innovation, (the EIB) is preparing the future for the European automobile industry.”

Renault will apply the funds loaned towards research into improving their range’s ecological credentials. There will be a programme to explore the options of making the vehicles significantly lighter by using different materials, as well as improving aerodynamics.

The company is also seeking to develop new concepts for next generation engines with a view to putting them into service in the future, reducing the environmental impact of the engine manufacturing process, and is in the processn of finalising a new, low-emissions supermini to replace the current Twingo.

The project is another example of the EIB’s commitments to innovation and environmental sustainability, and further information about it can be found here.