The European Investment Bank (EIB) said that it approved €866 million ($1.2 billion) worth of loans to automakers in the European Union to produce cars with lower emissions.
The money is coming from a €7 billion ($9.4 billion) lending package planned to aid struggling European automakers. The bank expects to approve the lending package in the first half of this year. So far, €3.6 billion ($4.9 billion) in loans have been announced and more are expected to come.
Nissan’s European operations will receive €400 million ($540 million) to develop and build more fuel-efficient vehicles in Britain and Spain according to the EIB. Jaguar Land Rover will get €366 million ($494 million) to lessen its vehicle emissions. Volkswagen also had a loan approved for the company’s plant in India.
The planned loans are similar to U.S. loans available to car makers with a green initiative. The U.S. government approved $25 billion in loans to be made available to car companies for the development and production of cleaner, more fuel efficient vehicles.