SBI and AFD Join Forces with €100 Million Credit Line to Accelerate India’s Green Transition – EQ
In Short : The State Bank of India (SBI) and the French Development Agency (AFD) have signed a 100 million euro Line of Credit agreement to strengthen green financing in India. The collaboration will support renewable energy and sustainable infrastructure projects, accelerating India’s transition to clean energy while promoting climate resilience and low-carbon growth through expanded financial access.
In Detail : The State Bank of India (SBI) has partnered with the French Development Agency (AFD) to sign a 100 million euro Line of Credit agreement aimed at boosting green financing in India. This agreement reflects the growing commitment of both institutions toward climate action and sustainable growth by expanding financial access to renewable energy and infrastructure projects.
The partnership will provide significant support to India’s clean energy transition, with funding targeted at projects that contribute to reducing carbon emissions and improving energy efficiency. By enabling investments in solar, wind, and other renewable sources, the Line of Credit is expected to accelerate the shift from fossil fuels to sustainable alternatives.
SBI, as India’s largest public sector bank, plays a critical role in financing large-scale infrastructure and energy projects. With AFD’s financial support, the bank aims to strengthen its portfolio of green projects and extend credit facilities to developers engaged in climate-friendly initiatives.
AFD, an international development finance institution, has been actively supporting sustainable projects worldwide. Its collaboration with SBI underlines the shared vision of France and India in addressing global climate challenges and fostering low-carbon development. The Line of Credit is a step toward strengthening bilateral cooperation in sustainability.
The agreement also emphasizes the importance of financial institutions in enabling climate action. By providing affordable financing options, SBI and AFD hope to make renewable projects more viable and attract greater participation from the private sector. This is expected to create long-term impacts across multiple industries.
India has set ambitious renewable energy targets as part of its climate commitments under the Paris Agreement. Partnerships like this bring additional resources and global expertise, helping India to scale up investments in solar parks, wind farms, electric mobility, and energy-efficient technologies.
Beyond energy, the Line of Credit will also support sustainable infrastructure projects, including waste management, water treatment, and urban transport. These investments will not only cut emissions but also improve the quality of life in urban and semi-urban areas.
The SBI–AFD collaboration is also designed to encourage knowledge exchange and capacity building. Along with financial assistance, the institutions will work on sharing best practices, technical expertise, and project management skills to ensure efficient and impactful deployment of funds.
This agreement marks a significant step in India’s journey toward a low-carbon economy. By combining domestic financial strength with international development support, the partnership between SBI and AFD is set to accelerate India’s green growth, reinforce sustainability, and contribute to global climate goals.
