The European Commission has given state aid approval to an investment fund supporting sustainable urban regeneration in Northwest England. The project is being promoted through a financial instrument, the Joint European Support for Sustainable Investment in City Areas initiative (JESSICA), in cooperation with the European Investment Bank (EIB) in order to further the EU’s policy on cohesion. The decision clarifies the guiding principles for the assessment of similar support measures that several Member States are currently considering. The Northwest Regional Development Agency has established and notified to the Commission a £100m Holding Fund, the Northwest Urban Investment Fund, which will be managed by the EIB. The fund will provide debt and equity investment to promoters and other private investors for urban regeneration projects and sustainable development initiatives in the Northwest’s urban areas. Under the fund, private investors will finance at least 50 per cent of each project’s costs. Each project must also have a business plan to ensure public investment will be repaid.