The World Bank has approved $1.5 billion in financing aimed at accelerating India’s transition to low-carbon energy solutions. This funding marks the second phase of support to bolster the country’s renewable energy sector and foster the development of a robust green hydrogen market.
The financing, known as the second Low-Carbon Energy Programmatic Development Policy Operation, focuses on advancing India’s efforts to decouple economic growth from emissions growth. Key initiatives include promoting the production of green hydrogen and electrolysers, critical for green hydrogen production. The operation builds on the success of a previous $1.5 billion initiative approved in June 2023, which facilitated reforms such as waiving transmission charges for renewable energy and setting ambitious renewable energy tender targets.
According to Auguste Tano Kouame, World Bank Country Director for India, these operations aim to attract private sector investment in green hydrogen and renewable energy, thereby supporting India’s net-zero emissions target and creating clean energy jobs.
The World Bank’s continued financial support underscores its commitment to India’s low-carbon development strategy. By facilitating reforms and investments in green hydrogen and renewable energy infrastructure, the operation is expected to significantly enhance India’s renewable energy capacity and contribute to substantial emissions reductions. This initiative aligns with India’s energy security goals and supports the global push towards sustainable development.
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