Sweden received SEK 3 billion EU financing for the construction of affordable and energy efficient housing

The European Investment Bank (EIB) has signed a SEK 3 billion financing facility agreement with Heimstaden Bostad AB. The Swedish residential company will develop eight residential properties in five cities in Sweden, resulting in about 3,300 new affordable homes to rent. The project is backed by the Juncker Plan’s European Fund for Strategic Investments (EFSI).

The investments will support the large-scale construction of affordable housing, thus addressing the severe shortage of residential units in Sweden’s main cities. Part of the investments include community services such as a new library, as well as homes dedicated to elderly care. The new affordable housing units will also benefit from high-energy performance standards.

Alexander Stubb, Vice-President of the EIB, commented: “We must not underestimate the importance of energy-efficient housing in fighting climate change; our homes and office buildings are the biggest emitters of CO2, bigger even than cars. With the demand for affordable housing continuously on the rise in Sweden, I am glad that the EIB can contribute towards alleviating the issue – and doing so with sustainable housing units.”

The demand for social infrastructure, including housing, is on the rise in Sweden, not only for demographic reasons but also because of ongoing urbanisation: Swedish cities are among the EU’s fastest-growing cities. The project supports national and European targets for energy efficiency and contributes to CO2 emission reduction, thus supporting climate change objectives as well as diversification of energy supply objectives in the EU.

Original source: EIB
Published on 30 September 2019