World Bank Gives Nod for $1.5 Billion Financing for India’s Low Carbon Energy Sector

The World Bank has approved the financing to gear up the development of India’s low carbon energy sector.

In a rather good move, the World Bank has given its approval for $1.5 billion in financing in order to develop India's low-carbon energy sector. The monetary funds would not only promote low-carbon energy by scaling up renewable energy, but it would also be useful to develop green hydrogen and stimulate climate finance for low-carbon energy investments.

Official statement

The World Bank Country Director for India, Auguste Tano Kouame, said in his official 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."

The program aims to scale up renewable energy supply by cutting costs and improving power grid integration. By doing so, India could reach its committed 500 gigawatts (GW) of renewable energy capacity by 2030. Post-funding, the government too has plans to issue bids for 50 GW of renewable energy each year from FY23–24 to FY27–28. They would aid in avoiding carbon emissions of 40 million tons per annum by 2026.

While the World Bank mentioned how India's per capita energy consumption was only one-third of the global average, energy demand would increase with the rapid expansion of the economy. Hence, fossil-based energy sources need to be phased down in order to match India's goal of achieving net-zero by 2070, the statement added.

World Bank funds

Meanwhile, not just India, but the World Bank recently approved $700 million in financing for two operations in Sri Lanka, the worst-ever economic crisis nation, to implement foundational reforms.

The new Country Partnership Framework (CPF) for Sri Lanka, which covers the years from 2024 to 2027, will focus on structural reforms to protect human capital and the most vulnerable population.

"The extent of the crisis in Sri Lanka is unprecedented, but offers a historic opportunity for deep reforms to reset the country's economic storyline," Faris H. Hadad-Zervos, World Bank country director for Sri Lanka, said in a statement.