GCF, ADB Launch $200 Mn Green Energy Facility in India

The Green Climate Fund (GCF), a climate fund to support developing countries in their efforts to combat climate change, has approved $200 million for a new Asian Development Bank (ADB)-led program.

Sharing the goals of this program, ADB said, this program aims to unlock large-scale public and private investment in high-impact and emerging clean energy sectors in India. GCF, one of the key climate fund providers, approved the funding at its 42nd Board meeting on 1 July.  The concessional funding will support ADB’s India Green Finance Facility (IGFF), a blended finance program that aims to crowd-in investment in emerging clean energy technologies from India’s leading development finance institutions (DFIs) and from the private sector.

Through this facility, ADB will seek to support lines of credit with qualifying national DFIs, which will be responsible for developing the pipeline of projects. Using GCF and ADB resources, the IGFF will extend lines of credit to India’s leading DFIs to accelerate funding for technologies such as round-the-clock renewable energy, green hydrogen, compressed biogas, electric transport in rural areas, and decentralized renewable energy solutions.  

IGFF created a $65-million risk-sharing facility This will provide partial credit guarantees to help smaller developers access affordable finance for compressed biogas projects, which commercial lenders often overlook due to inherent risks. The IGFF creates a blueprint for how concessional finance can catalyze sustained, market-driven transformation in developing countries.

About The Project

As ADB’s first partnership with the GCF in India, the IGFF will catalyze the uptake of emerging clean technologies across India and strengthen the ability of the nation’s financial institutions to scale up climate action.

“This is a significant milestone in helping India transform its energy systems to meet its net-zero emission target by 2070. While India has made tremendous progress in scaling up wind and solar energy, it is now seeking to decarbonize hard to abate sectors such as industry, agriculture, and transportation,” said ADB Director for Energy Transition Pradeep Tharakan. 

“The GCF is proud to support IGFF. This partnership reflects our commitment to driving innovative, high-impact solutions that tackle climate change and promote inclusive, sustainable development,” said GCF Director for Asia and the Pacific Hemant Mandal.