World Bank Approves $1.5 Billion Financing for India’s Low Carbon Transition
Ira Singh
1 July’23
In a significant move towards promoting sustainable development and reducing greenhouse gas emissions, the World Bank has approved $1.5 billion in financing to accelerate the development of India’s low carbon energy sector.The funding aims to support India’s efforts to adopt cleaner and more efficient technologies, ultimately contributing to the global fight against climate change.
“The program will support the successful implementation of the National Green Hydrogen Mission that aims to stimulate $100 billion in private sector investment by 2030,” said Auguste Tano Kouame, World Bank Country Director for India.
The program aims to scale up renewable energy supply by reducing costs and improving power grid integration, while helping India reach its committed 500 gigawatts (GW) of renewable energy capacity by 2030, according to sources.
The government plans to issue bids for 50 GW of renewable energy each year from FY23-24 to FY27-28, which will avoid carbon emissions of 40 million tons per annum by 2026, according to estimates.
The World Bank said, while India’s per capita energy consumption was only one-third of the global average, demand was expected to grow rapidly with the expansion of the economy.This calls for a phasing down of fossil-based energy sources in line with India’s goal of achieving net-zero by 2070, the statement added.
As the world grapples with the urgent need to address climate change, the World Bank’s investment in India’s low carbon transition sets a positive precedent for other nations to follow. It reaffirms the commitment of the global community to support developing countries in their pursuit of sustainable and resilient futures. By embracing cleaner technologies and sustainable practices, India is poised to become a shining example of how countries can successfully balance environmental stewardship with economic progress.