The Green Climate Fund (GCF) has approved USD 200 million in concessional funding for the Asian Development Bank’s (ADB) new initiative—the India Green Finance Facility (IGFF). The partnership aims to catalyse large-scale public and private investment in high-impact and emerging clean energy sectors in India.
Key Features of India Green Finance Facility (IGFF):
| Component | Details |
| Total GCF Funding | USD 200 million (concessional finance) |
| Partner | Asian Development Bank (ADB) |
| Blended Finance Model | Lines of credit will be extended to national development finance institutions (DFIs) |
| Target Sectors | – Round-the-clock renewable energy- Green hydrogen- Compressed biogas (CBG)- Electric transport (rural focus)- Decentralised renewable energy |
| Risk-Sharing Facility | US $65 million for partial credit guarantees to support small CBG developers |
| Goal | Unlock financing for clean energy projects typically underserved by commercial lenders |
Significance:
- The IGFF will address financing gaps in innovative and underserved clean energy segments in India.
- It supports India’s broader energy transition goals by:
- Enabling access to low-cost capital.
- De-risking private sector participation.
- Encouraging climate-resilient infrastructure in rural and semi-urban areas.