The European Investment Bank (EIB) has committed €1 billion (£0.84bn) to Banque des Territoires for energy efficient social housing.
The new credit line complements the French bank’s Eco loan product, which aims to make the thermal renovation of social housing widely available.
It supports the European Commission’s goal of a 55% reduction in greenhouse gas emissions across the EU by 2030 and doubling the annual energy renovation rate for residential and non-residential buildings by 2030.
The French National Energy and Climate Plan is also targeting the renovation of 500,000 homes a year, including 100,000 social homes.
The new scheme is expected to help finance the renovation of around 70,000 social housing units across France, helping reduce the primary energy use of buildings by at least 40%.
EIB Vice President Ambroise Fayolle said: “To help make the European Union the world’s first net zero greenhouse gas emissions economy by 2050, we must invest in making homes more energy efficient and particularly in eliminating thermal sieves.
“As the EU climate bank, the EIB has mobilised together with its partners the Alliance for Social Housing and Banque des Territoires to support affordable and sustainable housing.”