World Bank OKs $1.5b for India’s low-carbon transition

This will boost the development of green hydrogen and renewable energy.

The World Bank’s board of executive directors approved $1.5b in financing for a second operation to support India’s move to develop low-carbon energy.

In a statement, the World Bank said the Second Low-Carbon Energy Programmatic Development Policy Operation aims to promote “the development of a vibrant market for green hydrogen, continue to scale up renewable energy and stimulate finance for low-carbon energy investments.”

This will support reforms to boost the production of green hydrogen and electrolyzers, which are critical for green hydrogen production, it said. This also backs reforms to boost renewable energy penetration, such as by incentivizing battery energy storage solutions and amending the Indian Electricity Grid Code to improve renewable energy integration into the grid, it added.

The financing includes a $1.46b loan from the International Bank for Reconstruction and Development and another $31.5m from the International Development Association.

Through reforms supported by the operation, the World Bank said at least 450,000 metric tonnes of green hydrogen and 1,500 megawatts of electrolysers will be produced annually from fiscal year 2025-2026. It is also seen to expand renewable energy capacity and support reductions in emissions by 50 million tonnes annually.

The operation will also support steps to further develop a national carbon credit market.

“The operation is helping in scaling up investments in green hydrogen and in renewable energy infrastructure. This will contribute towards India’s journey for achieving its Nationally Determined Contributions targets,” said Aurélien Kruse, Xiaodong Wang, and Surbhi Goyal, team leaders for the operation.

The operation is aligned with India’s energy security and with the World Bank’s Hydrogen for Development (H4D) Partnership, the financial institution said.