According to the press release, the loan would be granted through a private sector investment finance program of JICA and co-financed with the Sumitomo Mitsui Banking Corporation.
JICA loan would help Tata Cleantech mitigate the impact of climate change by providing green finance, which would help reduce emissions of greenhouse gas emissions in India. It will also contribute to Sustainable Development Goals 7 and 13.
“This partnership will allow us to accelerate the pace of the transition to clean energy in India. We will focus on funding and supporting projects through renewable energy, electric mobility and energy efficiency sectors by channeling climate finance in India to mitigate the impact of climate change, ”said Manish Chourasia, Managing Director of Tata Cleantech.
Under the Paris Agreement, India has pledged to reduce the greenhouse gas emissions intensity of its GDP from 33% to 35% by 2030 and is promoting mitigation measures such as that the installation of renewable energies, energy-efficient equipment and electric vehicles to achieve the goal.
Tata Cleantech is a joint venture between Tata Capital and International Finance Corp that focuses on climate finance and advisory services. In 2019, he had secured a $ 100 million line of Green Climate Fund develop a rooftop solar energy market in India.