World Bank’s Bold $1.5 Billion Boost: A Strong Vote of Confidence in India’s Revolutionary Green Hydrogen Policies
The Indian government’s concerted efforts to build a robust ecosystem for green hydrogen and low-carbon energy have gained significant international support. According to the World Bank, these initiatives are confidence-inspiring, leading the financial institution to approve a second $1.5 billion development loan within a year. This action underscores a strong endorsement of India’s green energy strategies.
Last month, the World Bank extended a $1.5 billion loan to aid the development of India’s green hydrogen market, complementing an identical loan granted in June 2023. Government measures, such as subsidies for manufacturing electrolyzers and green hydrogen, have been instrumental in reshaping India’s energy sector, noted Surbhi Goyal, a senior energy specialist at the World Bank. “We saw a lot of actions taken by the government, especially on demand generation for green hydrogen, which gave us a lot of confidence,” Goyal told Mint. “Even other policy actions were quite aggressive.”
These loans are part of the World Bank’s development policy financing scheme, targeting three main pillars: promoting green hydrogen, boosting renewable energy for its production, and improving financial access for these projects. Key strategic policy interventions by the government include tenders by the Solar Energy Corporation of India (SECI) to set up electrolyzer and green hydrogen manufacturing. Additionally, the Carbon Credit Trading Scheme (CCTS) aims to ignite a domestic carbon credit market, bolstering financial access for low-carbon energy projects.
Providing a clear definition of green hydrogen in August 2023 was another pivotal move, according to Goyal, as it clarified what would be accepted as green hydrogen in India. Policy measures targeting demand for green ammonia and green hydrogen have also heightened investor confidence. Recently, SECI invited bids for the annual supply of 539,000 million tonnes of green ammonia for the fertilizer industry, while state-owned oil companies are also planning tenders to establish green hydrogen units at their refineries.
“The tenders have provided a strong demand signal, reaffirming India’s commitment to green hydrogen,” Goyal said. The World Bank will monitor several key performance indicators for these loans until June 2026, though interim targets have not been set.
Original Story https://www.livemint.com/news/india/world-banks-second-1-5-billion-loan-reflects-confidence-in-indias-green-hydrogen-policies-11720759311123.html
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