The European Union recently pledged $21.5 million to six South Asian nations (Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka) to implement climate-smart and inclusive infrastructure. IFC will carry out this project as part of its Inclusive Infrastructure in South Asia program.
The initiative, which runs for five years (from 2021 to 2026), focuses on making investments in green construction, waste management, transportation, and energy. The implementing partners intend to use $850 million in private sector funding for the area to assure the achievement of this development target over the long term. In light of recent data showing a 52% decline in private sector infrastructure investment from 2019 to 2020 and an estimate from the International Finance Corporation (IFC). The implementing partners intend to use $850 million in private sector funding for the area to assure the achievement of this development target over the long term.
This is in light of recent data showing a 52% decline in private sector infrastructure investment in 2020 compared to 2019 and an IFC estimate that the area has the potential to generate $3 trillion in climate-smart investment. The project is anticipated to provide green growth for the area and build sustainable connections through infrastructure, both of which are essential for reaching climate targets.
