Government of Goa and Power Finance Corporation come together to pioneer subnational Blended Finance Facility for Climate Action – EQ
In Short : The CMD of IREDA (Indian Renewable Energy Development Agency) reveals plans to establish a retail subsidiary and enhance rooftop solar financing. This initiative signals a strategic move to expand renewable energy services, particularly focusing on decentralized rooftop solar projects and broader accessibility in the retail sector.
In Detail : Power Finance Corporation (PFC), leading NBFC, power sector PSU and the largest renewable energy financier in India, has signed a Memorandum of Understanding (MoU) to support the climate ambitions of the state of Goa. The support extended would be under the Blended Finance Facility being set up by Government of Goa in partnership with The World Bank. The Government of Goa is setting up the sub-national Blended Finance Facility in partnership with the World Bank, aiming to foster low-carbon, climate-resilient development.
Under the MoU, PFC will utilize innovative blended finance mechanisms to fund key climate projects such as renewable energy, green hydrogen, electric vehicles, waste-to-wealth technology and nature-based solutions, thus contributing to Energy Transition. The Government of Goa will facilitate the successful implementation of the facility by identifying and developing a pipeline of climate projects, and promoting policy decisions and facilitating stakeholder collaboration to take those projects forward. PFC and the Government of Goa will pool resources and expertise, aiming to advance sustainable development. The agreement thus pioneers blended financing facility in India and seeks to attract private sector investment in climate initiatives, thus contributing to India’s ambitious net-zero goals.
The agreement has been signed at the two-day India Climate and Development Partners’ Meet in Goa today, February 20, 2024, in the presence of the Chief Minister of Goa, Dr. Pramod Sawant.
Speaking about the MoU, CMD, PFC, Smt. Parminder Chopra said: “India is committed to achieving ‘Panchamrit’ and Net Zero emissions by 2070; and PFC is going to play a pivotal role in aligning with the government’s commitment to Net Zero, through this milestone initiative in the area of blended financing for achieving energy transition.”
The collaboration between PFC and the Government of Goa marks a historic milestone in green financing, under which PFC will lend its financial expertise to drive climate initiatives and catalyze energy transition through emerging technologies. The initiative is an innovative partnership between Government of Goa and the World Bank on the one hand and leading financial institutions PFC, SIDBI and NABARD on the other, to finance climate action priorities.
