The World Bank has approved $1.5 billion to help India move towards low-carbon energy. This funding is aimed at promoting green hydrogen, expanding renewable energy, and attracting private investments in low-carbon energy.
Key Areas of Focus:
In the second phase of the Low-Carbon Energy Program, efforts are focused on developing the green hydrogen market, promoting renewable energy sources like solar and wind power, and attracting private sector investments in low-carbon energy projects. The initial phase, authorized in June 2023, facilitated various initiatives including waiving transmission charges for renewable energy in green hydrogen ventures, aiming to procure 50 GW of renewable energy annually through tenders, and establishing a legal framework for a national carbon credit market.The World Bank’s support will help India produce at least 450,000 metric tons of green hydrogen annually and install 1,500 MW of electrolyzers per year from FY25/26. This will also lead to a significant increase in renewable energy capacity and reduce emissions by 50 million tons per year.
World Bank Country Director for India, Auguste Tano Kouame, emphasized that this support will help India reach its net-zero target and create clean energy jobs. The financing 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).
This investment highlights the importance of India’s transition to a low-carbon economy and the potential of green hydrogen and renewable energy in fighting climate change while supporting economic growth.
