The Prime Minister of Bhutan, Dr. Lotay Tshering, is visiting the Luxembourg headquarters of the European Investment Bank to discuss possible financial and technical support for new solar and hydropower generation projects in the country.
In addition, the visit is intended to explore potential future EIB support for investment to scale up renewable energy, reduce energy use and cut carbon emissions, improve sustainable urban transport and adapt infrastructure to a changing climate.
“Bhutan is highly vulnerable to the impact of climate change and committed to scaling up energy access without increasing carbon emissions. Today’s fruitful discussions with experts at the European Investment Bank, a global leader in climate finance, will help to unlock renewable energy projects across Bhutan in the years ahead,” said Dr. Tshering.
EIB Vice President Kris Peeters, responsible for South Asia, welcomed Prime Minister Tshering, Foreign Secretary Choden and colleagues from the Royal Bhutanese Embassy and confirmed EIB’s ability to provide competitive long-term financing for climate action and infrastructure investment in Bhutan.
“The European Investment Bank works with partners across Asia and around the world to accelerate green energy, reduce carbon emissions and adapt to a changing climate. The EIB welcomes Prime Minister Tshering on this historic visit to the EIB headquarters and congratulates Bhutan on graduation from a Least Developed Country following successful completion of the UN criteria. Today’s discussions further strengthen our close cooperation with Bhutan and we look forward to supporting transformational sustainable investment in Bhutan in the years ahead,” said Peeters.
In January 2022, the Framework Agreement between the EIB and the Royal Government of Bhutan was signed and ratified.
According to the International Hydropower Association, in 2019 (most recent data available) Bhutan had installed hydroelectric capacity of 2,326 MW, which provided annual generation of 8.95 TWh. IHA said Bhutan’s hydropower potential is estimated at about 30 GW, of which 23.76 GW has been identified as economically feasible.
EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute toward EU policy goals. EIB Global is the group’s specialized arm dedicated to increasing the impact of international partnerships and development finance.
