- Commitment will fund climate businesses and climate-mitigating initiatives in India over the next five years
- Builds on over $1billion of climate finance committed by CDC across its markets over the last four years
- Commitment forms part of CDC’s Climate Change Strategy, demonstrating its ambition to invest for climate mitigation, adaptation and resilience
CDC Group, the UK’s development finance institution (DFI) and impact investor, is today announcing its ambition to invest up to US$1 billion in climate funding to India over the next five years (2022-2026). The commitment will fund climate mitigating projects and businesses in India and enhance national efforts to align with the Paris agreement.
Over the last four years, CDC has invested over US $1 billion in climate finance across Africa and South Asia. Today’s announcement builds on CDC’s existing US $1.99 billion portfolio in India, further demonstrating the DFI’s commitment to helping mobilise and accelerate climate investment in the country and showcases CDC’s Climate Change Strategy in action.
Over the next five years, CDC will provide financial capital to stimulate key sectors, businesses and local initiatives that are at the forefront of innovations to help tackle climate change and help mitigate its effects in India.
The adverse effect of climate change is already apparent across the globe, but climate-risk factors for emerging economies like India remain disproportionately greater. According to the Indian Government’s ‘Assessment of Climate Change over the India Region’ report, India is expected to undergo a three to four times increase in frequency and intensity of heatwaves, cyclones and water stress such as flooding and drought, by the end of the twenty-first century. Meeting this challenge calls for collaboration and greater investment to fund climate-supportive solutions that can enhance the lives of millions of people.
Alex Ellis, British High Commissioner to India, said: “I’m delighted to see this significant new investment into climate-related projects in India over the next five years – building on an already strong portfolio of work across India, spanning over three decades. The UK is increasing the flows of finance, both public and private, into green projects ahead of the COP26 climate conference in Glasgow and beyond. This will be our last best chance to set the world on the path that will limit global warming to 1.5 degrees. India is already taking impressive action, including through the 450GW renewables target.”
Srini Nagarajan, Managing Director and Head of Asia at CDC, said: “CDC recognises the scale of the climate action needed to address the complex risks already felt by business and communities across India. We are pleased to be making this $1 billion commitment to help accelerate transformative climate resilience and adaptation in the country over the next five years. As the UK’s DFI, CDC remains committed to fostering a stronger partnership with India and channel our patient and long-term capital toward innovative projects that will boost green and inclusive growth, and create new jobs and livelihood opportunities across India’s diverse and growing population.”
As an investor in India for over 30 years, CDC has a strong track record of making long-term investments that support green growth and promote climate resilience and adaptation in the country.
Key climate finance investments in India:
- Founded Ayana Renewable Power in 2018. CDC’S US $100 million commitment to date has helped to mobilise further capital to accelerate green energy capacity for India’s long-term economic development.
- An investment in CropIn, to support digitised farm management processes that enhances local farmers’ ability to meet the challenge of climate change and increased their income by 25 per cent in the first year of using the technology.
- A $30 million pioneering directed green lending facility to Tata Cleantech Capital that enhances water and energy efficiency, and reduces greenhouse gas emission in India.
- A commitment of $10 million in direct investment in Roserve to support the wastewater treatment and increase water efficiency in India.
Notes to Editors
The announcement was made as part of the 11th Economic and Financial Dialogue (EFD) between the UK and India. The joint statement, signed by Chancellor of the Exchequer Rishi Sunak, and Finance Minister Nirmala Sitharaman, is available here.