CDC Group, the UK’s development finance institution and impact investor, has announced a $30 million facility to Tata Cleantech Capital Limited (TCCL), through CDC’s directed green lending facility. This first of its kind facility will facilitate TCCL to offer loans to businesses across India that focus on e-mobility solutions as well as water and energy efficiency, to help ease the effects of climate change.
India is the world’s fourth-largest emitter of greenhouse gas emissions and is amongst the top ten water consuming countries in the world (World Resource Institute, 2017). CDC’s facility will boost efforts to avoid greenhouse gas emissions by increasing the deployment of energy efficiency and e-mobility solution. Moreover, this will also enable the reduction of freshwater consumption by funding water efficiency and wastewater treatment projects to reduce water stress. The objective is to support climate change mitigation in India.
While India’s resource efficiency sector is in its budding stage, the demand for resource efficiency services and products is increasing exponentially. CDC’s facility targets to address the financing barrier by directing lending to specific sub-sectors, incentivizing the rapid deployment of capital at scale. The facility will further validate the bankability of resource efficiency solutions to customers and investors alike, helping catalyze the growth of the market.
CDC’s facility to TCCL contributes to the accomplishment of UN Sustainable Development Goals 6 (Clean Water and Sanitation), 7 (Affordable and Clean Energy), 12 (Responsible Consumption and Production), and 13 (Climate Action).
Manish Chourasia, Managing Director, Tata Cleantech Capital Limited, said: “We are delighted to have CDC Group partner with TCCL in its journey to mobilize climate finance in India. TCCL will help develop the nascent cleantech sectors viz E-mobility, Energy Efficiency and Water Efficiency in India through CDC’s directed green lending facility. We look forward to deploying the CDC facility to fill in the market gap in the above sectors while pursuing a developmental agenda with sustainability at its core”
Srini Nagarajan, Managing Director and Head of Asia at CDC, said: “This pioneering facility is the first of its kind for CDC and helps address some of the most important climates and resource challenges India is experiencing. Our partnership with TCCL will enhance resource availability and efficiency for people across the country, helping to boost CDC’s long-term objective of supporting climate-resilient communities and businesses. Looking forward, we are keen to invest more of our long-term capital in target green sectors that will drive India’s transition to a net-zero carbon future.”
Geoffrey Manley, Director, and Head of Energy Access and Efficiency at CDC noted: “We are pleased that our facility to TCCL can provide flexible and long-term capital that will play an essential role in funding climate change adaptation and mitigation initiatives in India. We are excited that CDC’s innovative directed green lending facility will enable TCCL to provide funds quickly and at scale, to local green businesses that are doing their part in helping India take active steps to combat climate change.”