ADB and GCF Launch $200m India Green Finance Facility for Clean Energy Investment
Key Ideas
  • The Green Climate Fund and Asian Development Bank collaborate on a $200 million program to boost clean energy investments in India.
  • The India Green Finance Facility will focus on sectors like green hydrogen, electric mobility, and compressed biogas using blended finance mechanisms.
  • A risk-sharing facility of $65 million will aid smaller clean energy developers, particularly in the compressed biogas space, to access affordable funding.
  • This initiative is a significant step towards helping India achieve its 2070 net zero emission target by decarbonizing hard-to-abate sectors like industrial, agricultural, and transport.
The Green Climate Fund (GCF) and the Asian Development Bank (ADB) have partnered to launch a new $200 million program to accelerate clean energy investments in India. The program, known as the India Green Finance Facility (IGFF), aims to mobilize public and private investment into new clean energy technologies. IGFF will support sectors such as green hydrogen, electric mobility, and compressed biogas through blended finance mechanisms. One of the key highlights of the initiative is a risk-sharing facility of $65 million, which will provide partial credit guarantees to assist smaller clean energy developers in accessing affordable funding, particularly in the compressed biogas space. By leveraging lines of credit through India's Development Finance Institutions, IGFF will focus on projects related to round-the-clock renewables, green hydrogen, decentralized renewable energy, compressed biogas, and electric mobility in rural areas. This collaboration marks a crucial milestone in India's energy transition journey towards achieving its 2070 net zero emission target. The partnership between GCF and ADB demonstrates a commitment to driving innovative solutions for climate change and sustainable development. The project, approved during GCF's 42nd Board Meeting, sets a model for market-based climate action in developing countries, showcasing the potential for impactful climate finance initiatives.
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