IFC to invest in cleaner Indian air

International Finance Corporation is to invest US$20 million in the newly established Nereus India Alternative Energy Fund.

India, the world’s third largest source of carbon dioxide emissions, continues to draw funding to clean up its air.

International Finance Corporation (IFC), the private sector investment subsidiary of the World Bank, is to invest US$20 million in the newly established Nereus India Alternative Energy Fund. With a capital of US$250-million, Nereus is India’s first fund dedicated to renewable energy and will focus on supporting renewable and clean energy companies. It is based in Mauritius.

IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world. It promotes sustainable private sector development.

IFC said supporting India’s first renewable energy-dedicated fund sends a positive message to the fund investment community and the climate fund sector. It noted that investing in Nereus can help it mobilise investors and address the chronic power gap situation in India.

By 2030, India’s share of global emissions is expected to increase by 60%, the largest percentage increase of any nation.

This projected outcome reflects the disadvantages of India’s heavy reliance on coal-based power plants. IFC believes there is an opportunity to shift from coal-based power to one based on renewable energy.

Having IFC as an investor should also ensure strict adherence to European standards and guidelines for quality assurance at the fund and portfolio levels. Nereus’ portfolio focuses on the development, construction and operation of power generation facilities.