World Bank grants India 1.5 billion for clean energy shift.

By Oliver Townsend Jun 29, 2024
World Bank to give 1.5 billion dollars to India for clean energy transition.jpegOrginal image from: https://www.theweek.in/news/biz-tech/2024/06/29/world-bank-to-give-15-billion-dollars-to-india-for-clean-energy-transition.html

The World Bank has announced a significant investment of $1.5 billion into India to support the country’s transition towards clean energy. This funding will be used to accelerate the development of low-carbon energy sources, marking the second operation supported by the World Bank for this purpose. The first tranche of $1.5 billion was approved last year, showcasing a continued commitment to promoting sustainable energy practices in India.

Supporting Low-Carbon Energy Development

The Second Low-Carbon Energy Programmatic Development Policy Operation aims to drive reforms that will boost the production of green hydrogen and electrolysers, essential technologies for green hydrogen production. Additionally, the operation will focus on scaling up renewable energy sources such as solar and wind power. These initiatives are crucial for achieving India’s net-zero target and creating clean energy jobs in the private sector.

Key Reforms and Impact

The reforms supported by the operation are expected to result in the production of 450,000 metric tonnes of green hydrogen and 1,500 MW of electrolysers annually, starting from the next financial year. This will significantly increase renewable energy capacity and support a reduction in emissions by 50 million tonnes per year. Furthermore, the operation will pave the way for the development of a national carbon credit market, offering additional avenues for sustainable growth.

Financial Support and Partnerships

The funding for this operation includes a $1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a $31.5 million credit from the International Development Association (IDA). These financial resources, combined with the expertise and support of the World Bank, will play a crucial role in driving India’s clean energy transition and promoting a more sustainable future for the country.

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