The World Bank’s Board of Executive Directors approved $1.5 billion in financing on June 29th to accelerate India’s development of low-carbon energy.
The financing will help with India’s promotion of low-carbon energy by accelerating the use of renewable energy, developing green hydrogen, and stimulating climate finance for low-carbon energy investments.
“India’s energy consumption is one third of the global average, but its energy demand is expected to grow rapidly as the economy expands, and this requires subsidising fossil-based energy sources, in line with India’s 2070 net-zero goal,” said the World Bank in a statement.
The First Low-Carbon Energy Programmatic Development Policy Operation, which is the first in a series of two envisaged operations, will support India in developing green hydrogen, the World Bank added.
“The World Bank remains committed to supporting India’s low-carbon transition by complementing public financing and enabling private sector investments,” said Auguste Tano Kouame, World Bank Country Director for India.
The programme is the Bank’s first step in its comprehensive support for the energy transition in India, which is aligned with the Indian government’s energy security strategy.
The loan is provided by the International Bank for Reconstruction and Development (IBRD), and is facilitated by the UK’s one billion dollar backstop, which targets boosting the World Bank’s climate change financing to India.
