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Japan is offering $ 90 million. ready to India to promote green projects




Japan will offer up to 10 billion yen ($ 90 million) in the form of a loan to an Indian financial institution in an attempt to stimulate lending to companies promoting environmentally friendly projects in the fight against climate change.

Under an agreement signed with the Japan International Cooperation Agency, Tata Cleantech Capital Ltd. will provide “green loans” to companies that focus on energy efficiency, renewables and electric vehicles across India, the world’s third-largest carbon emitter after China and the United States.

Photo taken on Dec. 15, 2019 shows a plenary meeting of the 25th Conference of the Parties (COP25) to the United Nations Framework Convention on Climate Change in Madrid. (Kyodo)

The March 25 agreement comes as India pledged to reduce greenhouse gas emissions by gross domestic product by 33 to 35 percent by 2030 from 2005 levels under the Paris Agreement, a UN carbon cap agreement in 2015.

US President Joe Biden has invited Japanese Prime Minister Yoshihide Suga, Indian Prime Minister Narendra Modi, Chinese President Xi Jinping and other world leaders to a climate summit he will virtually convene on April 22 and 23.

Tata Cleantech Capital – a joint venture between India’s leading financial provider Tata Capital and the World Bank-backed International Finance Corporation – has helped develop 9.8 million kilowatts of renewable energy and reduce 15.1 million tonnes of carbon dioxide.

JICA said in a press release that the loan will support the Indian lender to mitigate the impact of climate change by providing green finance, resulting in lower carbon emissions.

The loan is co-financed with Sumitomo Mitsui Banking Corp., a major Japanese lender, according to the government-backed development agency.

“JICA will continue to support initiatives to combat climate change around the world and will continue to mobilize funding for this sector,” he said.

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