Washington DC and New Delhi — Six South Asian nations, including India, are set to benefit from a new USD$ 21.5 million (EUR 18 million) funding from the European Union (EU), which will help to accelerate climate-smart, inclusive infrastructure investments in their regions. IFC, the largest global development institution, focused on the private sector in emerging markets, will implement the project under the program, Accelerating Climate-Smart and Inclusive Infrastructure in South Asia (ACSIIS).
ACSIIS is a five-year program (2021-2026) to help spur investments in energy, water, waste management, transport, logistics, and green buildings to benefit people and businesses in Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka. ACSIIS would leverage USD$ 850 million of private sector investments in the region.
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 over US$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 EU’s support for the program could not come at a better time as it is vital to act now to unblock obstacles to spurring sustainable infrastructure projects. This program will leverage IFC’s experience and expertise in supporting climate-smart infrastructure development in the region,” he said.
The program will also support the development of climate-smart investments in agriculture, manufacturing, tourism, health, and education while focusing on key themes such as cities, gender, and green finance. The latest initiative builds on IFC’s previous partnership with the EU to support the Eco-Cities Program in India and other programs in the region.