Sweden: City of Malmö to build thousands of energy-efficient homes with EIB financing of €225 million

This article is published in association with European Investment Bank.

• EIB lends City of Malmö in southwestern Sweden SEK 2.6 billion to construct 13 residential buildings.
• Project to add over 1,500 energy-efficient apartments in Sweden’s No. 3 city.
• EIB credit advances EU’s urban and climate goals.

The European Investment Bank (EIB) will lend the Swedish city of Malmö SEK 2.6 billion (around €225 million) to build energy-efficient homes. The project will add more than 1,500 apartments in the city while advancing European Union climate goals and helping Sweden achieve its own energy-efficiency targets.

The City of Malmö’s municipal housing company, MKB Fastighets AB, will use the EIB loan to construct 13 residential buildings with a total of 1,547 apartments. The construction will proceed in phases, with the final homes expected to be completed by 2029. The new residences will meet energy efficiency standards that exceed Sweden’s benchmark.

“This investment underscores our strong commitment to supporting sustainable and inclusive urban development across Europe,” said EIB Vice-President Thomas Östros. “By providing long-term financing for initiatives like this, we help cities like Malmö, known as the City of Parks, lead the way in tackling climate change while improving the quality of life for their residents.”

Malmö, located in southwestern Sweden, is the country’s third-biggest city with a population of about 360,000 that is growing faster than the national average. It plays a vital role in the regional economy including through links to Denmark via the Öresund Bridge and collaboration with the Danish capital Copenhagen through a joint shipping port.

The residential buildings are being constructed in various locations across the city and feature apartments with mainly 1 to 4 rooms.

”It is crucial that we find ways to reduce climate impact from our new housing projects,” said MKB Fastighets AB Chief Executive Officer Marie Thelander Dellhag. “The financing from EIB confirms that our projects meet the high standards that are necessary to reach our climate goals. Efficient energy usage and climate ambitions are key factors in making MKB and Malmö more sustainable.”

The new credit marks the EIB’s seventh loan to the City of Malmö and builds on a partnership that began in 1995. The operation is fully aligned with EU legislation on the energy performance of buildings and on energy efficiency.

“The financing facility from EIB is an important tool in meeting the funding needs of our growing city,” said City of Malmö Head of treasury Claes Ramel. “It adds to the funding platform of the City of Malmö as well as confirms the high environmental standards of the investments. Thanks to this, the available amount of funding to the City of Malmö is also unusually large.”

Background information

EIB

The EIB finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030, as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

The EIB Group signed nearly €3 billion in financing for 32 projects in Sweden in 2023, a record high, with more than three quarters of these commitments channelled to climate action and environmental sustainability investments. For more details about our projects in Sweden and their impact, please visit the country page for Sweden.

City of Malmö

Malmö is Sweden’s third-largest city—a young, global, and growing urban hub. The population has increased steadily over the past 30 years, and today, over 360,000 people call Malmö home. Half of Malmö’s residents are under 35 years old, and its inhabitants have roots in over 180 countries.

The City of Malmö is one of the frontrunners in Europe’s climate transition, leading the way to climate-neutral cities in Europe. Malmö has also signed the Climate City Contract 2030, where 48 Swedish cities, representing more than half of Sweden’s population, are joining forces for the climate transition from local to global levels. This initiative serves as a tool to enable investments in climate and sustainability measures in cities.

The City of Malmö’s organization employs approximately 29,000 people across about 400 different professions. These dedicated employees provide daily services to Malmö’s residents, businesses, associations, and visitors.