The cash pot will allow Skanska to pay for energy saving ideas for clients upfront and then recoup the savings later to replenish the fund.

A Skanska spokesman said: “We often come up with energy saving ideas for clients but they can be reluctant to fund the upfront costs.

“We are putting our money where our mouth is and taking on the risk upfront.

“The central aim is to green how and what we build for our clients.”

Skanska has teamed up with CO2Sense, the not-for-profit, low-carbon specialist that already operates similar deferred pay back schemes for companies, to administer the process.

The contractor’s project and bid teams will shortly be invited to apply for seed funding of up to £25,000 from the Green Fund to invest in environmental solutions that are attractive to current or new clients.

A ‘Green Steering Committee’ made up of senior management will review the applications and invite successful teams to Dragon’s Den-style presentations to discuss their ideas further.

Potential ideas include any innovative product, technology, service or process that will reduce carbon, use less energy, water and raw materials, or produce less waste.

Cecilia Fasth, Executive Vice President at Skanska UK, said: “Green solutions often need investment to get them off the ground, producing cost savings over time. This has historically been the stumbling block to many good ideas not being implemented.

“Skanska’s new Green Fund will provide projects and bid teams with the seed capital to invest in green solutions that are attractive to clients, provide a return on investment and can be applied to the wider business and construction industry.”