The European Investment Bank (EIB) has committed an investment of $230m to financially aid hydropower, wind, geothermal and photovoltaic renewable energy projects across Central America.
As a part of a joint initiative with the Central American Bank for Economic Integration, the programme is expected to provide over $500m of investment in projects in six central American countries – Honduras, Nicaragua, El Salvador, Guatemala, Costa Rica and Panama.
European Investment Bank Latin America vice president Magdalena Álvarez Arza said that a considerable investment was needed to harness the potential of renewable energy and more efficient energy use to reduce carbon emissions and provide energy essential for economic growth.
"The European Investment Bank is committed to supporting long-term investment in sustainable energy around the world and enabling low-carbon energy investment in Central America," Arza added.
"We have a strong track record of partnership with the Central American Bank for Economic Integration and look forward to continuing this cooperation to benefit investment in the region."
The investment initiative is aimed at reducing regional dependence on fossil fuel imports and to cut down green house gas emissions from energy production.
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By GlobalDataBoth public and private sector investment in both renewable energy and energy are allowed under the programme.
Central American Bank economic integration executive president Dr. Nick Rischbieth noted, "As the principal source of multilateral funding in the region, and as the financial arm of the central american integration, we are most pleased with the expansion of our cooperation with EIB in the framework of our shared goal of promoting renewable energy and energy efficiency investments as drivers of sustainable and balanced growth in our beneficiary member countries."
