NaBFID Clean Energy Project
India
Proposed
Clean Energy and Energy Efficiency
Quick Facts
More About This Project
India has embarked on an ambitious program of decarbonization of its economy through focus on increasing renewable energy capacity as evident through the country’s climate commitments that have progressively tightened over the past decade. Simultaneously, with electricity demand rising rapidly, the policy emphasis has shifted from pure capacity addition toward grid integration and storage. Considering the scale and long-term nature of financing required, financial institutions such as National Bank for Financing Infrastructure and Development (NaBFID) are critical to the Government of India’s decarbonization efforts because of their capacity to appraise and supervise implementation of energy infrastructure projects and the ability to provide long-term funding.
The Loan will provide funding to NaBFID to support and expand its lending for clean energy projects in India. The partnership with NDB will enhance NaBFID’s exposure in the global market and expertise in clean energy for the sustainable development of infrastructure, aligning with India’s Nationally Determined Contribution targets.
The proposed Loan will increase financing for clean energy and energy efficiency. The Project supports energy security and reduction in carbon emissions by increasing renewable energy generation capacity. Additionally, positive spillover effects include reduced health and environmental externalities, such as lower air and water pollution.
The Project contributes primarily to United Nations Sustainable Development Goal (“SDG”) 7 on Affordable and Clean Energy, as well as SDG 13 on combating climate change and its impacts.