The leaders from both sides agreed to collaborate to support a payment security mechanism that will utilize both government and private funds. This collaboration aims to expedite the procurement of electric buses manufactured in India to aid in reducing carbon emissions in the transport sector.
US President Joe Biden and Indian Prime Minister Narendra Modi have approved a collaborative investment fund of up to USD 1 billion to facilitate India’s swift transition towards developing and implementing green technologies.
In alignment with this objective, the US Development Finance Corporation and India’s National Investment and Infrastructure Fund have traded letters of intent (LoIs), pledging to allocate up to USD 500 million each to establish a Renewable Infrastructure Investment Fund. This move progresses the resolution formed during Modi’s trip to Washington in June of this year.
Furthermore, both parties have agreed to collectively endorse a secure payment framework, encompassing governmental and private investments, to hasten the procurement of Indian-made electric buses. This strategy aims to minimize the carbon footprint in the transportation sector. The fund aims to lessen capital costs and quicken the initiation of greenfield renewable energy ventures, battery storage facilities, and emerging green technologies in India.
These LoIs represent Washington’s dedication to financially back climate initiatives. Consistently, New Delhi has maintained that the developed nations should financially contribute significantly before urging the Global South to enhance carbon reduction efforts, which encompasses a quicker transition away from fossil fuels.
India, boasting one of the world’s most extensive solar energy initiatives, has recently intensified its emphasis on battery storage to expedite its journey towards net-zero carbon emissions by 2070. Large-scale battery storage will enable India to capitalize on the swift growth of solar and wind energy resources.
Moreover, green hydrogen has become another crucial area of focus as the nation accelerates its carbon reduction strategy. The government has allocated INR 3,760 crore to bridge the viability gap funding for a proposed 4,000 MWh battery storage capacity, projected to be completed by 2030-31.
Earlier in the year, an INR 19,744 crore assistance for the Green Hydrogen Mission was sanctioned, envisioning a production volume of five million tonnes annually, coupled with an associated renewable capacity of 125 gigawatts.