Team Europe Initiative on Green Energy Transition (TEI GET), which was launched on Wednesday, will spend Tk 93.78 billion (EUR 930.6 million) on sustainable and renewable energy in Bangladesh.
Co-chaired by EU Delegation and Germany, EU member states and like-minded partners will implement the new initiative, according to a virtual event held on Wednesday.
Some 88 per cent of the fund will be made available as credit and the rest as grant assistance. The fund will be used in the areas of an effective sustainable energy market, optimised grid infrastructure and renewable energy integration into the grid.
This holistic approach covers generation, transmission, distribution and utilisation.
The approach follows two main directions - one is the progressive decarbonisation of the energy sector and the greenhouse gas emission reduction and the other relates to the universal access to affordable, reliable, sustainable and modern energy services.
The European initiative aims at supporting Bangladesh to build a power system that leads to maximum coverage of the country's energy demand through renewable energy.
It also intends to reduce CO2 emissions, energy consumption and demand through energy efficiency.
Speaking at the event, Ambassador of the EU Delegation Rensje Teerink highlighted the collective experience of Europe in the area of development of renewable energy.
"It pulls resources together and provides an opportunity to combine the most appropriate mix of implementing modalities to obtain maximum results. It shows that multilateralism works," she said.
Speaking on the occasion, German Ambassador Peter Fahrenholtz said, "The Team Europe approach stands for impact, innovation and overall coherence. It sends a strong message of European partnership and solidarity. It supports a sustainable recovery from the devastating impact of the pandemic."
The State Minister for Power, Energy and Mineral Resources Nasrul Hamid welcomed the European initiative.
"We are reviewing our Power System Master plan so that, under the leadership of the prime minister, Bangladesh continues to keep its CO2 emissions to a minimum level despite its tremendous economic growth," he added.