EU grants India EUR 200 million loan for climate projects
- 31 August 2011
NEW DELHI: India is to receive a EUR 200 million loan from the European Union (EU) to help finance the country’s low carbon energy projects, which will boost the local economy and help accelerate a Clean Revolution in India.
The loan will back private sector projects focused on climate change mitigation and renewable energy development, with the objective of making long-term finance available for such investments.
Money will go to those Indian projects which generate electricity, especially those in the solar photovoltaic, biomass and onshore wind industries.
As well as boosting the local economy, once funded, these projects will also greatly improve the quality of life for local communities, through reducing the costs of imported energy, increasing domestic energy production, and cutting airborne pollutants and greenhouse gases (GHGs).
The finances will be made available by the European Investment Bank (EIB) and released to India’s largest bank, ICICI Bank, marking the first ever cooperation between the two leading financial institutions.
Although the framework loan will be granted under the EIB’s Energy Sustainability and Security of Supply Facility (ESF), a EUR 4.5 billion program which aims to support EIB’s strategy of promoting renewable energy and energy efficiency in non-EU countries, it will also support the EU-India Strategic Partnership, which among its shared values and goals, endeavors to curb climate change.
EIB will make sure that all of the projects being supported are economically and financially feasible, technically ready and conform to the Bank’s environmental and social requirements.
Citing the grant as a huge encouragement, Aditi Dass, Director of Technology Programmes, The Climate Group India said: “Such financial supports are extremely critical for a country like India, which is slowly making advancements towards integrating the right amount of renewable energy into the country’s energy mix and unlocking a Clean Revolution.”