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World Bank Approves $1.5 Billion for India

1 Jul 2024

Green Energy Transition, with a Focus on Hydrogen

In a monumental step towards a sustainable future, the World Bank has approved $1.5 billion in financing to bolster India's green energy transition. This operation, the second in a series, aims to accelerate the development of low-carbon energy in India, focusing on green hydrogen, renewable energy, and private sector participation.

Key Areas of Focus

  1. Green Hydrogen Market Development: The financing will promote a vibrant market for green hydrogen, a clean fuel produced using renewable energy.

  2. Scaling Renewable Energy: Efforts will continue to scale up solar and wind power installations.

  3. Stimulating Low-Carbon Investments: The operation will stimulate finance for low-carbon energy investments, attracting private sector involvement.

Significant Expected Outcomes

  • Green Hydrogen Production: At least 450,000 metric tons of green hydrogen annually from FY25/26 onwards.

  • Electrolyzer Installation: 1,500 MW of electrolyzers per year from FY25/26.

  • Renewable Energy Capacity: A substantial increase in renewable energy capacity.

  • Emissions Reduction: Support for emissions reductions of 50 million tons per year.

Building on Previous Success

This operation builds on the foundations laid by the $1.5 billion First Low-Carbon Energy Programmatic Development Policy Operation approved in June 2023. Key initiatives from the first operation included:

  • Waiving Transmission Charges: For renewable energy in green hydrogen projects.

  • Renewable Energy Tenders: Launching 50 GW of renewable energy tenders annually.

  • National Carbon Credit Market: Creating a legal framework for a national carbon credit market.

Strategic Importance

Auguste Tano Kouame, World Bank Country Director for India, emphasized the operation's importance: "The World Bank is pleased to continue supporting India's low-carbon development strategy, which will help achieve the country's net-zero target while creating clean energy jobs in the private sector."

Private Sector Involvement

Both operations have a strong focus on boosting private investment in green hydrogen and renewable energy. The private sector’s crucial role in driving this transition is recognized, with significant interest shown in the first tenders under the National Green Hydrogen Mission’s incentive scheme.

National and Global Alignment

The operation aligns with India’s energy security goals and the World Bank’s Hydrogen for Development (H4D) Partnership, a global initiative supporting low-carbon hydrogen development in emerging economies.

Financial Package

The financing package includes a $1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a $31.5 million credit from the International Development Association (IDA).


This substantial investment by the World Bank underscores the global importance of India's transition to a low-carbon economy. The focus on green hydrogen and renewable energy highlights their crucial role in mitigating climate change while supporting economic growth. As India strides towards a sustainable future, this operation marks a pivotal moment in the global fight against climate change.

By focusing on these critical areas, India is poised to become a leader in the green energy revolution, driving global efforts to combat climate change and promote sustainable development.

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