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Back You are here: Home Politics Funding & Incentives E.U. provides $195 million loan for climate mitigation projects in India

Funding & Incentives

E.U. provides $195 million loan for climate mitigation projects in India

E.U. provides $195 million loan for climate mitigation projects in India
Representatives from the European Bank and Exim Bank agree on the framework loan. (Photo from the E.I.B.)

The European Investment Bank and Exim Bank have signed a 150 million euro ($195 million) loan to support climate mitigation projects in India.

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The framework loan will finance renewable energy projects such as small hydro, wind, solar geothermal and sustainable biomass. It will also back energy efficiency projects like cogeneration, district heating, and industrial modernization.

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The agreement will contribute to the E.U.-India Strategic Partnership which is aimed at expanding the European Union’s presence in India and helping the South Asian country promote energy security and address climate change.

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“This loan would contribute to environmental sustainability, a key priority for the E.U. and the E.I.B.,” said the E.I.B..

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It is the second time that the E.I.B. has partnered with Exim Bank, India’s leading export finance institution, for this kind of loan. The first framework loan was signed in December 2008.

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According to the E.I.B., lending operations outside Europe is part of the region’s cooperation policy with third countries. For the past 20 years, the bank has been providing loans in Asia and Latin America. The current mandate covering the period 2007 to 2013 stated that the E.I.B. can lend up to 3.8 billion euro ($4.93 billion).

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In 2011, the E.U. created a dedicated 2 billion euro ($2.6 billion) Climate Change Mandate for the bank to support climate change mitigation and adaptation projects across the regions. Additionally, in 2007, a 4.5 billion euro ($5.85 billion) financing facility was established to support investments in renewable energy, energy efficiency, and related climate change mitigation and adaptation projects in other sectors in emerging countries. There are no specific amounts allotted for each country under these mandates and facilities. – EcoSeed Staff

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