Green Climate Fund clears $100-mn line of credit for Nabard plan
The programme would help develop the market for solar rooftop financing to meet the government of India’s ambitious target of 40 GW of rooftop solar power by 2022.
The Green Climate Fund (GCF) on Wednesday approved the proposal submitted by Nabard for the ‘line of credit for solar rooftop segment for commercial, industrial and residential housing sectors’ with a GCF loan support of $100 million. The proposal is the first private sector facility proposal sanctioned by GCF to India and will be executed through Tata Clentech Capital (TCCL). The approval came during its 19th board meeting held in Songdo, South Korea. The programme aims to provide concessional loan assistance to solar rooftop PV systems with a programme outlay of $250 million, creating the power generation capacity of 250 MW. The programme would help develop the market for solar rooftop financing to meet the government of India’s ambitious target of 40 GW of rooftop solar power by 2022.
The programme will endeavour to create energy access for most vulnerable areas and MSMEs with poor energy access scenario to create better livelihood opportunities, a note issued by Nabard said. Nabard has been accredited as the direct access entity (DAE) of the Green Climate Fund for channelising resources under this fund. It aims to use GCF resources for projects and programmes aimed at climate-resilient and low-emission development. The GCF has been designated as an operating entity of the financial mechanism of the UNFCCC and aims to support developing countries to limit or reduce greenhouse gas emissions and to adapt to the impacts of the climate change.