The European Investment Bank (EIB) has signed a financing facility agreement with residential firm Heimstaden Bostad AB to develop sustainable housing in Sweden.
The SEK 3bn (€300m) agreement, which is backed by the Juncker Plan’s European Fund for Strategic Investments, will see Heimstaden Bostad develop residential facilities in five Swedish cities, producing a total of around 3,300 affordable housing units. The programme, which was devised to address the current shortage of affordable urban housing in Sweden, will include provision for supported housing for the elderly and community facilities such as libraries.
Heimstaden Bostad CEO Patrik Hall said: “As a long term investor, to develop and manage affordable housing with high energy performance standard is part of our DNA. This project will create value both from a social as well as from an environmental aspect and it is with great pleasure we proceed with this important project in cooperation with the EIB.”
Alexander Stubb, Vice President of the EIB, said: “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 [do] so with sustainable housing units.”
The project is focused on building sustainable housing; and will operate in line with the EU’s targets for energy efficiency and emissions reduction. Each facility will be constructed to meet high energy performance standards.
European Commission Vice President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, who is also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “Providing financial support for the construction of affordable homes underlines the importance of the Juncker Plan’s social impact. Heimstaden Bostad will also ensure that these homes [are] highly energy efficient in line with our climate action objectives, so this is a win-win.”