04 Jul 2023
In a major boost to India's zero carbon mission, the World Bank sanctioned a $1.5 billion loan to finance the country's development of low-carbon energy. The Bank said that the financing is aimed at helping India scale up renewable energy, developing green hydrogen and stimulating finance for low-carbon energy investments.Auguste Tano Kouame, World Bank Director for India, stated that India demonstrates a strong commitment to achieving net-zero emissions by 2070, and the approved loan programme is designed to assist the nation in realising this ambitious target.
"India is very committed to achieving net-zero by 2070. This programme that we approved for $1.5 billion called Low Carbon Development Policy Operation is to support India's transition to its net-zero goals," Kouame said.
One of the main pillars of the World Bank's financing initiative is to bolster the advancement of green hydrogen in India. The programme will actively support the Indian government's efforts in encouraging the adoption of green hydrogen, which can be utilised in various sectors such as transportation, industry, and power generation, significantly reducing carbon emissions.
Recognising the crucial role of renewable energy in India's decarbonisation journey, the World Bank's financing will also focus on boosting the demand and supply of clean energy sources. By incentivising the development and deployment of renewable energy projects, the programme aims to enhance the capacity and affordability of sustainable energy solutions across the country.
Also Read: India's hydrogen market to surge: Morgan Stanley projects $19 billion opportunity by 2030
To accelerate the transition to a low-carbon economy, the World Bank's loan programme will facilitate the establishment of a carbon market in India. This market mechanism will enable the trading of carbon credits and foster private sector investments in renewable energy projects.
The enthusiasm surrounding green hydrogen is not limited to India alone. Many countries worldwide are recognising its potential as a key enabler of decarbonisation and are actively exploring its development. Additionally, the COP27 summit also provided a comprehensive framework for countries to collaborate and advance green hydrogen technologies as part of their climate mitigation strategies.
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