World Bank approves ₹12,300 crore for India's low-carbon energy sector
The World Bank announced it had approved just above ₹12,300 crore to accelerate the development of low-carbon energy technology in India.
In a statement, the bank said its funding – $1.5 billion – would be used to scale up renewable energy supply, develop green hydrogen and stimulate climate finance for low-carbon energy investments.
Auguste Tano Kouame, World Bank Country Director for India, said the program would support implementation of the National Green Hydrogen Mission, which aims to stimulate $100 billion in private sector investment by 2030.
In an interview earlier this month, the World Bank's president, Indian-born Ajay Banga, had said the bank needed to create a "different playbook" for emerging markets. Bang had suggested roping in private capital to aid energy transitions in developing markets, pointing out that an energy transition would require trillions of dollars and the bank's funds were limited.
India is pivoting to renewables and clean energy as the country seeks to build energy security, reduce it oil import bills and acquire technology and capacities to become the world's hub for emerging technologies such as batteries and hydrogen.
India's green hydrogen production capacity is estimated to grow to at least 5 MMTPA by 2030, and companies such as Larsen & Toubro have signed electrolyzer agreements to strengthen their presence in the sector.
Experts believe India is well suited for green hydrogen production because an abundance of renewable sources – solar and wind – offer companies cheap power that can be utilized to generate hydrogen fuel.