The European Investment Fund and the Silk Road Fund on Monday launched a new fund to support the Belt and Road Initiative, as part of the effort to enhance cooperation under the existing cooperation framework.

The China-EU Co-Investment Fund, which is expected to provide 500 million euros ($540 million) once operational, is expected to support equity investment across Europe, according to an online announcement by the European Investment Bank on Monday.

The agreement to establish the China-EU Co-Investment Fund was signed at the 19th European Union China Summit in Brussels, according to the bank.

"The new China-EU Co-Investment Fund will build on the strong spirit of partnership between Europe and China," said Jonathan Taylor, European Investment Bank Vice President responsible for East Asia.

Creation of the China-EU Co-Investment Fund will help to further develop synergies between China's Belt and Road Initiative and the Investment Plan for Europe, the so-called "Juncker Plan", the European Union's strategy to mobilize 315 billion euros of new public and private investment across Europe, according to the bank.

While he paid a visit to Beijing earlier in March, Taylor said he was not sure what the initiative will be like in the future, but the bank is interested in getting involved in the China-led initiative, as long as projects fit into the screening criteria, referring to projects that are sustainable and are expected to generate long-term benefits.

The bank is considering co-financing a green transportation project with the Asian Infrastructure Investment Bank in an Asian country, according to Taylor, who did not provide further details on the matter.

The European Investment Bank plans to provide an additional 500 million euros of finance for environment and climate-related projects in China this year, according Taylor.