The World Bank’s Board of Executive Directors has approved a $1.5 billion financing package to support India’s efforts in accelerating low-carbon energy development. This funding aims to boost the country’s green hydrogen market, scale up renewable energy, and stimulate investments in low-carbon energy projects.
The World Bank’s Board of Executive Directors has approved $1.5 billion in financing to support India’s acceleration of low-carbon energy development. Announced on June 29, this second development policy operation aims to further advance the country’s green hydrogen market, scale-up renewable energy, and stimulate funding for low-carbon energy investments.
India, noted for its fast-growing economy, seeks to decouple economic growth from emissions through extensive renewable energy deployment, especially in industrial sectors. This requires significant green hydrogen production and climate finance mobilization.
This operation, part of a series, backs reforms to enhance green hydrogen and electrolyzer production, incentivize battery energy storage, and amend the Indian Electricity Grid Code to integrate renewable energy more effectively. It follows the initial $1.5 billion operation approved in June 2023, which supported renewable energy initiatives and established a framework for a national carbon credit market.
Results from the reforms are expected to include the production of at least 450,000 metric tons of green hydrogen and 1,500 MW of electrolyzers annually from FY25/26 onwards, increased renewable energy capacity, and a 50 million ton-per-year reduction in emissions. The operation will also foster the development of a national carbon credit market.
The financing for this initiative consists of a $1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a $31.5 million credit from the International Development Association (IDA).
