ADB-led India Green Finance Facility to Catalyze Clean Energy Investment Through GCF Partnership
SDG 7: Affordable and Clean Energy
SDG 13: Climate Action
Institutions: Ministry of New and Renewable Energy
The Green Climate Fund approved a $200 million India Green Finance Facility (IGFF) under a program led by the Asian Development Bank, aimed at accelerating India's clean energy transition. The facility will mobilize climate finance for emerging technologies and embed gender-responsive green lending in state-owned development finance institutions (DFIs). Key program components include concessional credit lines to DFIs for on-lending to both public and private sector borrowers in decarbonization sectors, such as energy, transport, industry, and agriculture, and a risk-sharing facility (RSF) to provide guarantees for small-scale projects, enabling local financial institutions to invest with reduced risk.
The initiative integrates technical assistance, policy engagement, and capacity building to institutionalize climate finance practices. A portion of the funding, $187 million in loans and $13 million in grants, will be directed to implementing institutes, while co-financing from other sources is expected to substantially increase overall impact.
Relevant question for policy stakeholders: How can Indiaβs DFIs effectively deploy IGFF mechanisms - such as concessional finance and risk-sharing - to scale clean energy solutions (e.g., green hydrogen, electric transport), while ensuring gender-responsive financing and building institutional capacity?
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https://www.adb.org/news/adb-and-gcf-partner-launch-clean-energy-financing-program-india