World Bank Approves Funds Worth $1.5 Billion To Develop Low-Carbon Energy In India

Issuing an official release, the World Bank said that it plans to help promote the development of a market for green hydrogen and generate more finance for investments in low-carbon energy

The World Bank on Friday authorised more funding for developing low-carbon energy in India. The global lender’s board approved funds worth $1.5 billion to finance a second operation to help speeden up the development of low-carbon energy in the country. 

Issuing an official release, the World Bank said that it plans to help promote the development of a market for green hydrogen via the project. The lender further aims to keep developing renewable energy via the operations and also generate more finance for investments in low-carbon energy, reported Moneycontrol.

Elaborating on the development, Auguste Tano Kouame, World Bank Country Director for India, noted, “The World Bank is pleased to continue supporting India’s low-carbon development strategy which will help achieve the country’s net-zero target while creating clean energy jobs in the private sector. Indeed, both the first and second operations have a strong focus on boosting private investment in green hydrogen and renewable energy.”

Notably, in order to promote economic growth without contributing to an increase in emissions, renewable energy will need to be developed further in the country, particularly in hard-to-abate industrial sectors. This will require the augmentation of production of green hydrogen and consumption. Further, climate finance will also require some attention to help enhance the mobilisation of finance for low-carbon investments. 

The project titled, ‘Second Low-Carbon Energy Programmatic Development Policy Operation’ will provide backing to reforms that aim to increase green hydrogen production and electrolyzers.

The operation will also help support initiatives that work towards increase adaptation of renewable energy such as providing incentives for battery energy storage solutions and making revisions to the Indian Electricity Grid Code to refine renewable energy integration into the grid.

Notably, the global lender earlier authorised the $1.5 billion First Low-Carbon Energy Programmatic Development Policy Operation, which helped support removing transmission charged for renewable energy in green hydrogen projects. This operation marked the first in the series.