EU to make $21m climate-smart investment in Bangladesh, South Asia

The European Union (EU) has allocated a fund of $21.5 million to help accelerate climate-smart and inclusive infrastructure investments in Bangladesh and five other South Asian countries.

The five other countries are India, Bhutan, Maldives, Nepal, and Sri Lanka.

IFC, a global development institution, will implement the project under the programme, "Accelerating Climate-Smart and Inclusive Infrastructure in South Asia (ACSIIS)".

These six South Asian nations are set to benefit from the $ 21.5 million (EUR 18 million) funding from the EU, which will help to accelerate climate-smart, inclusive infrastructure investments in their regions, IFC said in a press release today.

ACSIIS is a five-year programme from 2021 to 2026 will help spur investments in energy, water, waste management, transport, logistics, and green buildings to benefit people and businesses in the countries.

ACSIIS would leverage $850 million of private sector investments in the region, it said.

The impact of Covid-19 on investments in infrastructure has been widespread and severe. Investment commitments in infrastructure with private participation in 2020 dropped by an unprecedented 52 percent from 2019 levels.

IFC estimates that South Asian countries can unlock more than $3 trillion of climate-smart investment opportunities by fully meeting the national targets under the Paris Agreement by 2030.

Attracting private capital for climate-smart infrastructure in a sustainable and inclusive manner will be critical for post-Covid-19 recovery in South Asia, said Hector Gomez Ang, regional director for South Asia at IFC.

The ACSIIS project will support a green and inclusive recovery in South Asia, said Ugo Astuto, ambassador of the European Union to India and Bhutan.

"We are happy to see the existing EU cooperation in India broadening into a regional intervention with multi-sector coverage, in line with the objectives of the EU Green Deal, to promote sustainable development, the fight against climate change and the transition to renewable energy."

"This initiative will make a positive contribution to sustainable connectivity, supporting the EU engagement in key sectors to build a greener future," he added.