On 3 July 2025, the Asian Development Bank (ADB) in partnership with the Green Climate Fund (GCF) announced a $200 million pledge to establish the India Green Finance Facility (IGFF)—designed to unlock large-scale financing for emerging low-carbon energy sectors in India.
The concessional funding will support ADB-led credit lines with India’s national development banks, enabling investment in cutting-edge clean technologies, including Round-the-clock renewable power, Green hydrogen, Compressed biogas, Electric mobility in rural areas and Electric mobility in rural areas.
A highlight of the initiative is a $65 million risk-sharing facility, providing partial credit guarantees to give smaller biogas developers access to loans they’d otherwise struggle to secure. The IGFF marks ADB’s first collaboration with GCF in India, embodying a model for harmonising concessional capital to steer private investment into climate-critical sectors.
The Green Climate Fund—the world’s largest climate fund—formally approved the contribution during its 42nd Board meeting on 1 July 2025.
ADB’s Broader Investments in India
ADB has been an active financier across multiple sectors in India:
- Urban development & transport: A five-year, $10 billion Urban Transformation Initiative, including metro and regional transit systems, was announced on 1 June 2025. This covers major projects like the Delhi–Meerut RRTS and metro expansions across Mumbai, Chennai, Bengaluru, and Nagpur.
- Industrial infrastructure: A recent $85.4 million loan to Tripura supports upgrades in power, roads, warehousing, and more—aimed at boosting manufacturing and investment in India’s northeast.
- Clean energy programmes: Beyond the new IGFF, ADB established the Clean Energy Financing Partnership Facility (CEFPF) in 2007 to support deployment of clean energy solutions across its member countries—including bioenergy, distributed renewables, and energy-efficient transport.
- Green finance with IREDA: In 2015, ADB extended a $200 million loan to the Indian Renewable Energy Development Agency to back solar and wind power projects totaling over 990 MW.
ADB’s approach blends sovereign loans, private-sector financing, and technical assistance—deploying instruments like loan guarantees, credit lines, and capacity building to attract third-party capital and institutional partners.
