SDG 7: Affordable and Clean Energy | SDG 13: Climate Action | SDG 17: Partnerships for the Goals
Institutions: Ministry of Finance
The New Development Bank (NDB), established by the BRICS nations, recently hosted a high-level seminar in Mumbai to strategically discuss financing pathways for India’s sustainable energy transition. The event emphasized the dual challenge India faces: meeting rising energy demand while simultaneously adhering to its Net-Zero 2070 target and reducing carbon emissions.
The seminar acknowledged India’s significant policy achievement of reaching 50% non-fossil fuel electricity capacity ahead of its 2030 target. To build upon this success, experts stressed the urgent need for substantial investments in critical clean energy infrastructure, including solar, wind, green hydrogen, battery storage, and smart grids.
Multilateral Development Banks (MDBs) like the NDB play a vital role by mobilizing resources, enabling low-cost technology transfer, and promoting climate-smart investments. The NDB specifically committed to meeting its strategic goals of allocating 40% of its total financing to climate projects and 30% in local currencies, ensuring competitive and diversified financing essential for India’s equitable and affordable clean energy shift.
NDB Vice President and Chief Risk Officer, Dr. Rajiv Ranjan, highlighted the bank is on track to meet these financing goals. Representing the Government of India, the Director of the Department of Economic Affairs stressed the need for MDBs to continue to mobilize resources for the transition. Industry leader NTPC Limited emphasized that competitive financing is crucial for its evolution into an integrated energy company focused on renewables, hydro, and nuclear.
Policy Relevance
The seminar reinforces the policy consensus that financing, technology transfer, and long-term policy clarity are the cornerstones of India’s energy transition. The NDB’s commitment to local currency financing is key for mitigating exchange rate risks for domestic developers. The acknowledged success of reaching the 50% non-fossil fuel capacity goal provides a strong mandate for the Ministry of Finance to push MDBs for even greater investment commitments, focusing on the emerging sectors of green hydrogen and battery storage.
Relevant Question for Policy Stakeholders: How will the Ministry of Finance ensure that the NDB’s commitment to financing 30% of projects in local currency translates into competitive interest rates and risk mitigation for domestic green hydrogen and battery storage projects?
Follow the full news here: New Development Bank Seminar Discusses Ways to Finance India’s Sustainable Energy Transition