Magazine : 
World Bank Approves $1.5 Billion to Boost India's Low-Carbon Energy Sector
The World Bank has approved $1.5 billion in financing to support India's transition to low-carbon energy, marking a significant investment in the country’s renewable energy and green hydrogen sectors. Announced on June 29, this funding represents the second phase of the Low-Carbon Energy Programmatic Development Policy Operation.
According to a World Bank blog post, the financing will assist India in scaling up renewable energy projects, developing green hydrogen capabilities, and stimulating climate finance for low-carbon energy investments. This initiative builds on the $1.5 billion granted in June 2023 under the First Low-Carbon Energy Programmatic Development Policy Operation, which notably supported the waiver of transmission charges for renewable energy in green hydrogen projects.
The newly approved funds aim to bolster the market for green hydrogen, a crucial element in India’s low-carbon strategy. The focus will include the development of green hydrogen and electrolyzers, essential for its production, alongside incentivizing battery energy storage solutions and amending the Indian Electricity Grid Code to better integrate renewable energy.
The World Bank emphasized the importance of decoupling India's economic growth from emissions, highlighting the need for substantial renewable energy expansion, particularly in hard-to-abate industrial sectors. To achieve this, the plan targets the production of at least 450,000 metric tons of green hydrogen and the installation of 1,500 MW of electrolyzers annually starting FY 2025-26.
Beyond hydrogen, the operation supports increasing renewable energy capacity and cutting emissions by 50 million tons per year. It also aims to advance the development of a national carbon credit market, crucial for incentivizing low-carbon investments.
The World Bank’s investment underscores the necessity of transitioning to sustainable energy sources to mitigate climate change impacts. By fostering green hydrogen production and renewable energy expansion, the initiative seeks to position India as a leader in low-carbon technologies and support its commitment to reducing emissions.
This substantial financing is part of broader global efforts to enhance climate resilience and foster sustainable development, aligning with India's goals of reducing greenhouse gas emissions and promoting cleaner energy alternatives.
Read More News :
India Surges in Mobile Phone Exports, Catching Up with China and Vietnam
Stocks To Focus: BEL, IREDA, ITC, Tata Steel, GAIL, IREDA, BoB
