JICA signs loan agreement with TCCL for climate change management project in India
Update: March 30, 2021 8:19 PM STI
Tokyo [Japan], March 30 (ANI): The Japan International Cooperation Agency (JICA) recently signed a loan agreement with the non-bank financial corporation Tata Cleantech Capital Limited (TCCL) for up to 10 billion Japanese yen for the ” Climate Change Management Project “in India.
“On March 25, JICA signed a loan agreement in the amount of up to 10 billion yen with Indian Non-Banking Financial Company, TCCL to help the company provide business loans through India which focuses on the production of renewable energy, electric vehicles (EV) as well as energy efficiency following the principles of the green loan “, according to a press release from the Japan International Cooperation Agency.
Green loans are loans with limited use for environmentally conscious projects.
This loan will be provided under JICA’s Private Sector Investment Finance Program and is co-financed with Sumitomo Mitsui Banking Corporation (SMBC).
India is currently the world’s third largest emitter of greenhouse gases (GHGs) and is expected to emit more GHGs as the economy grows rapidly.
“The The Indian government ratified the Paris Agreement in 2016, in which India has pledged to reduce GHG emissions relative to GDP by 33-35% by 2030. In order to meet the target, the government of India is promoting mitigation measures such as the installation of renewable energies (solar, wind, etc.), energy efficient equipment and electric vehicles, ”the statement 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 recognized for its integration into the coveted Green Bank Network, TCCL is the first Indian entity and 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 avoided annual carbon emissions of 15.1 MT, the statement added.
The statement further stated that the JICA loan would support TCCL to mitigate the impact of climate change by providing green finance, which will help reduce GHG emissions by India. (ANI)