World Bank approves $1.5 billions loan to support India's green hydrogen push

The World Bank has approved a $1.5-billion loan to help India accelerate its low-carbon energy development.

The funds will be used to promote a market for green hydrogen, electrolysers, and increased renewable energy penetration, it said in a statement on Friday.

This is the second round of funding from the World Bank towards India's green energy push.

In June 2023, the World Bank approved the $1.5-billion First Low-Carbon Energy Programmatic Development Policy Operation to accelerate India’s development of low-carbon energy.

The fresh funding will help India expand green hydrogen production and consumption as well as for a faster development of climate finance. This will boost the mobilisation of finance for low-carbon investments, according to the multilateral financing agency.

“The Second Low-Carbon Energy Programmatic Development Policy Operation – the second in a series of two operations similar in size – will support reforms to boost the production of green hydrogen and electrolysers, critical technology needed for green hydrogen production,” the World Bank said in a statement.

The development comes in the backdrop of India’s ambitious energy transition targets. The Centre has set a target of achieving 500 GW of installed renewable energy capacity by 2030 and reaching net zero by 2070. Further, the Centre also launched the ₹17,000-crore National Green Hydrogen Mission to promote manufacturing of electrolysers and green hydrogen.