The European Investment Bank (EIB) has approved a €350 million framework loan to support renewable energy initiatives in Bangladesh, marking a significant step in the country’s transition towards sustainable development.

According to a statement released by Bangladesh’s Finance Ministry on Monday, the financing will be bolstered by a €45 million grant from the European Union (EU).

The funds will support projects focused on environmental protection, climate change mitigation, and adaptation efforts, aligning with Bangladesh’s development goals amid increasing climate vulnerabilities.

The announcement came during a series of high-level bilateral meetings at the 58th Annual Meeting of the Asian Development Bank (ADB). On Sunday, Finance Adviser Dr Salehuddin Ahmed met with EIB President Nadia Calviño to discuss expanded cooperation and future investments.

Since 2000, the EIB has invested approximately €635 million in six major projects in Bangladesh in health, water, transport, and communication. Although the bank primarily finances projects in EU member states, it plays a crucial role in delivering EU development assistance globally.

During the talks, Dr Ahmed urged the EU and its institutions to enhance concessional and grant-based support, particularly in areas vital for Bangladesh’s graduation from least developed country (LDC) status and to avoid the middle-income trap.

The Finance Adviser also met with officials from the Japan Bank for International Cooperation (JBIC), which has historically backed key infrastructure and industrial projects in Bangladesh, including power and fertilizer plants.