In a recent bid by the European Union to implement climate-smart and inclusive infrastructure, it has allocated $21.5 million across six South Asian countries (Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lank), which is to be implemented by IFC through their Inclusive Infrastructure in South Asia program. The program is a five-year program (From 2021 to 2026) that focuses on investing in energy, water, waste management, transport, logistics, and green building.
To ensure sustainable progress of this development goal, the implementing partners plan on utilizing private sector investment to an amount of $850 million for the region. This comes in light of recent statistics that show private sector participation in infrastructure investment dropped by 52% in 2020 from 2019 and the estimation of IFC that projects the potential to unlock $3 trillion of climate smart investment in the region.
The initiative is expected to create sustainable connectivity through infrastructure and ensure green growth for the region, which is especially crucial for achieving climate goals.
Source: The Daily Star