JICA signs loan agreement with TCCL for 'Climate Change Management Project' in India
Mar 30, 2021
Tokyo [Japan], March 30 : Japan International Cooperation Agency (JICA) recently signed a loan agreement with the Non-Banking Financial Company, Tata Cleantech Capital Limited (TCCL) for a maximum amount of 10 billion Japanese yen for the "Climate Change Management Project" in India.
"On March 25, JICA signed a Loan Agreement for a maximum amount of JPY 10 billion with Indian Non-Banking Financial Company, TCCL to support the company to offer loans to businesses across India that focus on renewable energy generation, electric vehicles (EV) as well as energy efficiency following the Green Loan Principles," according to a press release by Japan International Cooperation Agency.
Green Loans are loans that are limited for use in environmentally conscious projects.
This loan will be provided through the Private Sector Investment Finance scheme of JICA and is co-financing with the Sumitomo Mitsui Banking Corporation (SMBC).
India is the world's third-largest emitter of greenhouse gas (GHG) at present and is projected to emit more GHG as the economy grows rapidly.
"The Indian government has ratified Paris Agreement in 2016, in which India promised to decrease the emission of GHG p+er GDP by 33-35 per cent before 2030. In order to achieve the target, the government of India is promoting mitigation measures such as the installation of renewable energy (solar power, wind power etc.), energy-efficient equipment, and electric vehicles," the release said.
TCCL, a joint venture between Tata Capital Limited (Tata Group) and IFC (World Bank Group) is a first of its kind Private Sector Green Investment Bank with a focus on climate finance and advisory services.
Internationally recognised by its induction in the coveted Green Bank Network, TCCL is the premier Indian entity and the first Private Sector Climate Finance Institution to be part of this network. TCCL has contributed to the development of 9.8 GW of renewable energy which has averted annual carbon emissions of 15.1 MT, the release added.
The release further stated that JICA's loan will support TCCL to mitigate the impact of climate change by offering green finance, which will contribute to decreasing the emission of GHG in India.
