The World Bank said on Friday it has approved $1.5 billion in financing to accelerate the development of India’s low carbon energy sector.
The financing will help India promote low-carbon energy by scaling up renewable energy, developing green hydrogen and stimulating climate finance for low-carbon energy investments, the bank said in a statement.
“The program will support the successful implementation of the National Green Hydrogen Mission that aims to stimulate $100 billion in private sector investment by 2030,” said Auguste Tano Kouame, World Bank Country Director for India.
The program aims to scale up renewable energy supply by reducing costs and improving power grid integration, while helping India reach its committed 500 gigawatts (GW) of renewable energy capacity by 2030.
The government plans to issue bids for 50 GW of renewable energy each year from FY23-24 to FY27-28, which will avoid carbon emissions of 40 million tons per annum by 2026.
That World Bank said that while India’s per capita energy consumption was only one-third of the global average, demand was expected to grow rapidly with the expansion of the economy.
This calls for a phasing down of fossil-based energy sources in line with India’s goal of achieving net-zero by 2070, the statement added.