Release date: 10 January 2024
Location
Description
The project consists in a climate fund focusing on India that supports decarbonisation and circular economy.
Additionality and Impact
The operation contributes to the development of renewable energy infrastructure in India, as well as decarbonisation efforts in other sectors. It will thereby contribute to India's Intended Nationally Determined Contribution ("INDC").
The Fund has a focus on investments which will produce electricity from renewable energy sources (solar photovoltaic and associated transmission lines), addressing market failures of negative climate and environmental externalities through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation).
The individual projects are expected to have an excellent economic return, considering the economic value of the electricity generated. Therefore, projects under this operation are expected to generate a strong social benefit by producing clean and renewable power at a cost reasonably below the economic cost of fossil-fuel based alternatives in the country.
While the Fund only represents a small fraction of the overall investment needed, its contribution remains highly valuable and necessary. Its funding will serve as a catalyst for further progress in renewable energy and infrastructure projects that might otherwise be delayed or insufficiently supported by the market. The EIB's commitment to the Fund will be vital in unlocking the potential of this large sector and advancing India's sustainable development goals. The EIB will ensure the Fund will implement industry best practices in terms of governance and impact measurement standards.
Objectives
The fund will invest in greenfield projects (directly into assets / platforms) in India. Supported sectors include renewable energy (generation / transmission / distribution), transport decarbonisation (EV infrastructure), industrial decarbonisation (energy efficiency), digital infrastructure, water treatment and waste recycling / management.
Sector(s)
Proposed EIB finance (Approximate amount)
USD 60 million (EUR 54 million)
Total cost (Approximate amount)
USD 300 million (EUR 270 million)
Environmental aspects
The Fund will be required to have an environmental and social policy and the appropriate management systems in place so as to comply with the EIB's social requirements. The assessment of the environmental, climate and social impacts and risks will be part of the standard due diligence process that the fund will have to carry out for each portfolio company and any underlying investment and, thereby ensuring that the portfolio and these investments are in compliance with national law and in line with the principles and standards of relevant EU environmental legislation as well as the EIB's Environmental and Social Standards.
Procurement
The EIB will require the promoter to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement.
Status
Signed - 25/07/2025