World Bank bankrolls India’s low-carbon energy transition

The World Bank has approved US$1.5 billion to help India promote low-carbon energy by building up renewable energy, developing green hydrogen, and bolstering climate finance for low-carbon energy investments.

As the economy of India is expanding, energy demand in the country is also growing rapidly. To help India promote low-carbon energy by building up renewable energy, developing green hydrogen, and bolstering climate finance for low-carbon energy investments, the World Bank has approved US$1.5 billion in financing.

Mr. Auguste Tano Kouame, World Bank Country Director for India said, “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.”

The World Bank’s financing program aims to enlarge the renewable energy supply. It will lead to a reduction in costs, and improvement in grid integration and will help India to achieve its committed 500 GW of renewable energy capacity by 2030. 

The government of India plans to issue bids for 50 GW of renewable energy each year during the period FY23-24 to FY27-28. This will circumvent carbon emissions of 40 million tons per annum by 2026.

The financing program will support policies for a National Carbon Credit Trading scheme to launch a national carbon market. A national carbon market is vital for providing a level playing field between low-carbon energy and fossil fuels.

The program will also support policy actions for the issuance of US$6 billion in sovereign green bonds by 2026. India issued its first sovereign green bond in January 2023.