The Japan International Cooperation Agency (JICA) recently signed a loan agreement with the non-bank financial corporation Tata Cleantech Capital Limited (TCCL) for up to 10 billion Japanese yen for the “Climate Change Management Project” in India. “On March 25, JICA signed a loan agreement of up to 10 billion yen with Indian non-bank finance company TCCL to help the company provide loans to Indian companies focused on power generation. renewable, electric vehicles (EVs) as well as energy efficiency in accordance with the principles of green loans, ”according to a press release from the Japan International Cooperation Agency.
Green loans are loans with limited use for environmentally friendly projects. This loan will be provided through JICA’s Private Sector Investment Finance Program and is co-financed with Sumitomo Mitsui Banking Corporation (SMBC).
India is currently the world’s third largest emitter of greenhouse gases (GHGs) and is expected to emit more GHGs as the economy grows rapidly. “The Indian government ratified the Paris Agreement in 2016, in which India pledged to reduce GHG emissions relative to GDP by 33-35% by 2030. In order to meet the target, the Indian government promotes mitigation measures such as the installation of renewable energies (solar energy, wind power, etc.), energy-efficient equipment and electric vehicles, ”the statement said.
TCCL, a joint venture between Tata Capital Limited (Tata Group) and IFC (World Bank Group) is the leading private sector green investment bank focused on climate finance and advisory services. Internationally recognized for its integration into the coveted Green Bank Network, TCCL is the first Indian entity and the first private sector climate finance institution to be part of this network. TCCL has contributed to the development of 9.8 GW of renewable energy, which has avoided annual carbon emissions of 15.1 MT, the statement added.
The statement further states that the JICA loan will help TCCL mitigate the impact of climate change by providing green finance, which will help reduce GHG emissions in India. (ANI)
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