European Union Pledges €1.3 Billion to Drive Renewable Energy Growth in Bangladesh

The European Union electrifies its sourcing. The European Union will allocate €1.3 billion to boost the use of renewable energy in Bangladesh's industry. The decision will directly affect the textile industry, the most important industry for the territory and responsible for 80% of Bengali exports.

The injection was announced at the end of April at a convention held in the capital, Dhaka, by Michal Krejza, director of the European Commission's cooperation unit. This investment is part of a larger Brussels program, called I've got the Power, which seeks to boost renewable energy in different countries.

"The European Union will invest €1.3 billion so that Bangladesh not only accelerates the adoption of renewable energy, but also helps to stabilize the political landscape through fair and free elections," said the representative, according to statements reported by different media in the country.

The European Union will channel these funds through a larger program to boost electrification

Beyond the announcement, different authorities from both countries have recently met to define the priority projects that will benefit from the investment plan. Bangladesh's objectives are that this injection will help to increase the use of renewable energies in the country by up to 3%.

In the medium term, in fact, the Asian country is immersed in a strategy to reach 15% implementation of these energy sources by 2030, and 100% by 2050. Renewable energy systems will thus gradually replace traditional combustion methods in factories.

The main challenge for this transition is precisely the financing of this change. Suppliers often work with different customers, who do not usually account for a majority of the production of the facilities, so they do not have an incentive to invest in the facilities.