The fund will help India boost its green hydrogen and other renewable energy generation capacity oriented to its net-zero commitments
The World Bank has cleared $1.5 billion to help India accelerate the development of low-carbon energy, focusing on promoting green hydrogen, scaling up renewable energy, and stimulating finance for low-carbon investments. This support is aimed at decoupling economic growth from emissions growth by expanding green hydrogen production and consumption and fast-tracking climate finance.
The Second Low-Carbon Energy Programmatic Development Policy Operation aims to boost green hydrogen production and increase renewable energy integration. In June 2023, the $1.5 billion First Operation supported renewable energy transmission charges waiver, 50 GW annual renewable energy tenders, and a national carbon credit market framework.
The proposed reforms aim to produce 450,000 metric tons of green hydrogen and 1,500 MW of electrolysers annually from FY25/26. It will also help increase renewable energy capacity, reduce emissions by 50 million tons per year, and establish a national carbon credit market. The initiative is fully aligned with the Government of India’s energy security goals.