Climate finance project for low-carbon transition in India

In 2023, India became the most populous country in the world and, at the same time, one of the most vulnerable to climate risks. To put the country on the path to a low-carbon and resilient transition by 2030, financial needs are estimated at between USD 2.5 to 3.1 trillion. 

The green finance market in India is still underdeveloped. The State Bank of India (SBI), the country’s largest bank, can play an important role in redirecting financial flows to the investments needed to implement the CDN. SBI can act as a catalyst in mobilizing the national financial system in favour of climate finance.

The purpose of the project is to support SBI on the climate component of its strategy, in order to help intensify financial flows for investments participating in the low-carbon and resilient transition in India. To this end, AFD made available to SBI a credit facility of €100 million. This loan has been used to finance electric buses and resil-ient infrastructures at the national level. 

To support the investments needed to implement the NDC, the project leverage the levers of sustainable and resilient growth in India. This project help mobilize a leading financial actor on climate finance. Indeed, because of their prominent position on the financial market, public banks, and a fortiori SBI, are ideally placed to partici-pate in increasing the resources available for the country’s climate transition, This will serve as a catalyst for In-dia’s transition goals. This project also pave the way for a strategic dialogue on climate finance issues between SBI and AFD.