The Green Climate Fund has approved 200 million US dollars to support a new program led by the Asian Development Bank aimed at driving large-scale public and private investment in high-impact and emerging clean energy sectors in India. The funding will be directed towards the India Green Finance Facility, a blended finance initiative designed to attract investment from India’s leading development finance institutions and the private sector into advanced clean energy technologies.
Through this facility, the Asian Development Bank will work with qualifying national development finance institutions by providing them with lines of credit. These institutions will be responsible for identifying and developing a pipeline of clean energy projects. The program will focus on areas such as round-the-clock renewable energy, green hydrogen, compressed biogas, electric transport in rural areas, and decentralized renewable energy solutions.
A key feature of the India Green Finance Facility is the establishment of a 65 million US dollar risk-sharing facility, which will provide partial credit guarantees to smaller developers, particularly in the compressed biogas sector. This is intended to make it easier for such developers to secure affordable financing from commercial lenders who often perceive these projects as high-risk. This marks the first collaboration between the Asian Development Bank and the Green Climate Fund in India.
ADB Director for Energy Transition Pradeep Tharakan, stated, “This is a significant milestone in helping India transform its energy systems to meet its net zero emission target by 2070. While India has made tremendous progress in scaling up wind and solar energy, it is now seeking to decarbonize hard to abate sectors such as industry, agriculture, and transportation.”
Hemant Mandal, GCF Director for Asia and Pacific, mentioned, “The GCF is proud to support IGFF. This partnership reflects our commitment to driving innovative, high-impact solutions that tackle climate change and promote inclusive, sustainable development.”
The initiative is expected to not only accelerate the adoption of emerging clean energy technologies but also strengthen the capacity of Indian financial institutions to scale up climate action. The Green Climate Fund, the world’s largest climate fund, approved this support during its 42nd Board meeting held on 1 July. The Asian Development Bank, established in 1966 and owned by 69 members, works to promote inclusive, resilient, and sustainable growth across Asia and the Pacific through innovative financial solutions and partnerships.
Subscribe to get the latest posts sent to your email.
