The World Bank has sanctioned $1.5 billion to strengthen Bharat’s efforts in advancing low-carbon energy initiatives. This financing, part of a second operation, aims to create a robust market for green hydrogen, escalate renewable energy deployment, and stimulate investments in low-carbon energy, as per a statement released on Saturday.
Bharat, renowned as the world’s fastest-growing large economy, continues its rapid expansion. To decouple economic growth from emissions, there is an urgent need to scale up renewable energy, particularly in challenging industrial sectors, the statement highlighted.
The programmatic operation will support reforms aimed at enhancing green hydrogen production and critical technologies like electrolysers. This marks the second initiative in a series of similar endeavours.
In June 2023, the World Bank approved the first $1.5 billion Low-Carbon Energy Programmatic Development Policy Operation, which facilitated transmission charge waivers for renewable energy in green hydrogen projects. It also paved the way for launching 50GW of renewable energy tenders annually and establishing a legal framework for a national carbon credit market.
“The World Bank remains committed to bolstering India’s low-carbon development strategy, crucial for achieving net-zero targets and fostering job creation in clean energy sectors,” remarked Auguste Tano Kouame, World Bank Country Director for India. “Both operations prioritize enhancing private sector investments in green hydrogen and renewable energy.”
The reforms backed by this initiative are expected to ramp up green hydrogen production to 450,000 metric tons and electrolysers to 1,500MW annually starting FY25-26. Moreover, it aims to significantly augment renewable energy capacity and slash emissions by 50 million tons annually.
“This operation supports Bharat’s ambitious goals for developing a robust green hydrogen market alongside expanding renewable energy infrastructure,” affirmed Aurélien Kruse, Xiaodong Wang, and Surbhi Goyal, Team Leaders for the operation. “It aligns with India’s Nationally Determined Contributions and enhances energy security.”
The financing package comprises 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), underscoring the World Bank’s commitment to Bharat’s sustainable energy future.
