On Friday, the World Bank revealed its approval of $1.5 billion in financing aimed at expediting the development of India’s low-carbon energy sector. This financial support serves to bolster India’s efforts in advancing renewable energy, facilitating the growth of green hydrogen, and stimulating climate finance for low-carbon energy investments, according to a statement released by the World Bank.
A pivotal component of this program is its contribution to the successful implementation of the National Green Hydrogen Mission, which strives to attract a substantial $100 billion in private sector investment by 2030, as stated by Auguste Tano Kouame, the World Bank Country Director for India.
By reducing costs and enhancing power grid integration, the initiative seeks to escalate the supply of renewable energy while assisting India in achieving its committed target of 500 gigawatts (GW) of renewable energy capacity by 2030.
In line with its ambitions, the Indian government has planned to issue bids for 50 GW of renewable energy annually from fiscal year 2023-24 to fiscal year 2027-28. This strategic move is expected to prevent carbon emissions of approximately 40 million tonnes per year by 2026.
Highlighting India’s unique energy landscape, the World Bank noted that the country’s per capita energy consumption currently stands at a mere one-third of the global average. However, with the economy rapidly expanding, the demand for energy is projected to surge significantly.
Consequently, a gradual reduction in fossil-based energy sources becomes imperative, aligning with India’s ambitious objective of achieving net-zero emissions by 2070, as emphasised in the statement.