- The World Bank approved $1.5 billion to accelerate India’s low-carbon energy expansion, focusing on green hydrogen and renewable energy.
- The plan targets the production of 450,000 metric tons of green hydrogen and 1,500 MW of electrolysers annually from FY25/26 and aims to integrate more renewable energy into the grid.
- The operation supports India’s goal of reducing emissions by 50 million tons annually and developing a national carbon credit market.
The World Bank approved $1.5 billion to accelerate India’s low-carbon energy expansion. This funding, part of the Second Low-Carbon Energy Programmatic Development Policy Operation, aims to develop a green hydrogen market, expand renewable energy, and stimulate low-carbon investments.
India’s rapid economic growth makes emissions reduction vital. The plan will scale up renewable energy, especially in hard-to-abate sectors, and increase green hydrogen production. This operation supports reforms for green hydrogen production and electrolysers. It also focuses on renewable energy by promoting battery storage and updating the Indian Electricity Grid Code for better integration.
In June 2023, the World Bank approved a $1.5 billion plan to support renewable energy and green hydrogen. The plan included waiving transmission charges and setting a path for 50 GW of annual renewable energy tenders. It also laid the groundwork for a national carbon credit market.
World Bank Country Director for India, Auguste Tano Kouame, said, “This funding supports India’s low-carbon strategy, aiming for net-zero targets and creating clean energy jobs.”
The new operation targets the production of 450,000 metric tons of green hydrogen and 1,500 MW of electrolysers yearly from FY25/26. It will also increase renewable energy capacity and cut emissions by 50 million tons annually. Additionally, it supports developing a national carbon credit market.
The operation aligns with India’s energy security goals and the World Bank’s Hydrogen for Development (H4D) Partnership.
Team leaders Aurélien Kruse, Xiaodong Wang, and Surbhi Goyal noted that the operation boosts investments in green hydrogen and renewable energy, aiding India’s climate targets.
The financing includes 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).