The European Investment Bank (EIB) has committed to providing €350 million in loans to support renewable energy projects in Bangladesh, with the European Union contributing an additional €45 million in grants.

The projects aim to boost environmental sustainability and advance efforts to mitigate and adapt to climate change, in line with Bangladesh's efforts to attain the Sustainable Development Goals, according to a press release from the Ministry of Finance.

The announcement came on the sidelines of the Asian Development Bank's (ADB) 58th annual meeting, where Bangladesh strengthened development cooperation through a series of high-level bilateral meetings with key international financial partners.

On May 4, Finance Adviser Salehuddin Ahmed held a bilateral meeting with EIB President Nadia Calviño to discuss expanding the bank's support in Bangladesh's priority sectors.

The EIB, the EU's primary lending arm, has been working in Bangladesh since 2000 and has invested around €635 million in six ongoing projects involving health, water supply, transport, and communications.

Although its primary focus is on the EU member states, the EIB plays a significant role in EU development cooperation extended to over 160 countries, particularly in climate action, infrastructure, innovation, and SME development.

During the meeting, the finance adviser highlighted the urgent need for increased investment in human capital and infrastructure to help Bangladesh in its graduation from least developed country status and avoid the middle-income trap.

He urged the EU and its institutions to scale up concessional financing — meaning those offered on more favourable terms than those available on the open market — in key sectors.

Ahmed also met with officials from the Japan Bank for International Cooperation (JBIC), a long-time partner in Bangladesh's development.

JBIC's investments include the Detailed Area Plan (DAP)-II, the Ghorasal Polash urea fertiliser project, and the Meghnaghat power plant.

The Bangladesh delegation also held meetings with senior officials from the ADB, the OPEC Fund, and the Agriculture Innovation Mechanism for Scale.