Japan International Cooperation Agency (JICA) signed a Loan Agreement for a maximum amount of JPY 10 billion with Indian Non-Banking Financial Company, Tata Cleantech Capital Limited (TCCL) to support the company to offer loans to businesses across India that focus on renewable energy generation, electric vehicles as well as energy efficiency following the Green Loan Principles . This loan will be provided through Private Sector Investment Finance scheme of JICA and is co-financing with the Sumitomo Mitsui Banking Corporation.
India is the world’s third largest emitter of greenhouse gas (GHG) at present and is projected to emit more GHG as the economy grows rapidly. The Government of India has ratified Paris Agreement in 2016, in which India promised to decrease the emission of GHG per GDP by 33%-35% before 2030. In order to achieve the target, the Government of India is promoting mitigation measures such as installation of renewable energy (solar power, wind power etc.), energy efficient equipment, and EV.
TCCL, a joint venture between Tata Capital Limited (Tata Group) and IFC (World Bank Group) is a first of its kind Private Sector Green Investment Bank with focus on climate finance and advisory services. Internationally recognized by its induction in the coveted Green Bank Network, TCCL is the premier Indian entity and first Private Sector Climate Finance Institution to be part of this network. TCCL has contributed to the development of 9.8 GW renewable energy which has averted annual carbon emissions of 15.1 MT.
JICA’s loan will support TCCL to mitigate the impact of climate change by offering green finance, which will contribute to decrease the emission of GHG in India. It will also contribute to SDGs (Sustainable Development Goals) Goals 7 and 13. JICA will continue its support for climate change initiatives in the world and continue to mobilize private finance for this sector.
“This partnership will enable us to accelerate the pace of transition to clean energy in India. Our focus will be on funding and supporting projects across renewable energy, e-mobility and energy efficiency sectors by channelising climate finance in India to mitigate climate change impact,” said Manish Chourasia, managing director, Tata Cleantech.