In a decisive move to catalyze the growth of India’s low-carbon energy sector, the World Bank has sanctioned $1.5 billion in financing. The funding is intended to aid India’s efforts in scaling up renewable energy, promoting green hydrogen, and sparking climate finance for low-carbon energy investments.
A Green Investment for a Greener India
According to the World Bank, the program will foster the implementation of the National Green Hydrogen Mission which aims to draw $100 billion in private-sector investment by 2030. The mission encapsulates India’s vision for a sustainable future, using green hydrogen as a key factor in its energy strategy.
Auguste Tano Kouame, World Bank Country Director for India, highlighted the significance of this investment, stating, “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.”
Towards a Carbon-Low Energy Landscape
The program’s prime objective is to augment renewable energy supply by reducing costs, enhancing power grid integration, and supporting India in its ambitious goal of achieving 500 gigawatts (GW) of renewable energy capacity by 2030.
The Indian government’s approach is aggressive yet achievable, with plans to issue bids for 50 GW of renewable energy annually from the fiscal year 2023-24 to 2027-28. This proactive strategy is projected to avert carbon emissions of 40 million tons per year by 2026.
The Path Towards Net-Zero
Despite India’s per capita energy consumption being only one-third of the global average, the World Bank expects demand to surge with the economy’s expansion. Consequently, this necessitates the phasing down of fossil-based energy sources, aligning with India’s objective of achieving net zero by 2070.
The World Bank’s significant investment is a clear indicator of international support for India’s robust renewable energy goals and the country’s commitment to a greener, sustainable future.
