Five leading investment banks are arranging a $5bn (€3.7bn) loan to support of an energy efficiency programme devised by the Clinton Climate Initiative, an environmental scheme launched last year by former US president Bill Clinton to tackle global warming.

ABN Amro, Citigroup, Deutsche Bank, JPMorgan Chase and UBS have each agreed in principle to arrange $1bn of financing, which will be repaid plus interest by municipal governments and building owners with savings made from reduction in energy costs through the programme.