The EU yesterday announced it has earmarked almost €9bn for investment in green energy projects in Europe's most remote and economically deprived regions and has invited businesses and local governments to apply for the cash.

The investment is available as part of the EU's cohesion policy for 2007 to 2103 and is to target €4.8bn at developing renewable energy and €4.2bn at improving energy efficiency and energy management in regions such as eastern Europe, southern Europe and south west England.

A further €63.8bn is also available to support research and development projects, a significant part of which is to focus on research on renewable energy.

EU commissioner for regional policy Danuta Hübner said that the regions would have a critical role to play in ensuring that Europe meets its target of cutting emissions by 20 per cent by 2020. "I see huge potential for creating sustainable jobs and growth through devising innovative technologies that help reduce our carbon footprint," she said. "The sooner regions act, the sooner they can benefit from a low-carbon lifestyle."

She pointed to initiatives such as the Danish project to turn the island of Samsø into a carbon neutral commnunity as an example of the type of scheme that would be eligible for financial support from the EU.

A spokeswoman for Hübner's office said that the majority of the €9bn had not yet been assigned and that the EU was inviting applications for support from local governments, businesses and public private partnerships. She said that green energy projects in regional areas could apply for the funding by submitting their plans to their local development agencies.