As Panchabuta had mentioned earlier this year in October, India was seeking a fund of around $ 0.75 billion from the multilateral Climate Technology Fund (CTF) for Phase 1 of its investment plan for low carbon technology. The four specific demand and supply side initiatives for which the funding has been sought include: support to the Jawaharlal Nehru National Solar Mission (JNNSM), Partial Risk Guarantee for Energy Efficiency Technologies, support for the National Mission for Enhanced Energy Efficiency (NMEEE) including PAT scheme, and Development Policy Loan on Environmental Sustainability.
According to reports, projects worth US$ 1.08 billion, that will help eight developing countries reduce carbon dioxide emissions and mitigate the impact of climate change were approved in the first week of November by the Climate Investment Funds (CIFs), a partnership of five development banks.
CIFs offer interim support to developing countries’mitigation and adaptation efforts, while international climate summits iron out the exact mechanism of the promised global adaptation fund.
Donor countries have pledged US$ 6.5 billion to the CIFs to help 45 developing countries embark on initiatives on clean energy, sustainable management of forests, and low-carbon climate-resilient development.
India’s investment plan received a US$ 775 million dollar loan, by far the largest sum approved.
“Companies will need to make high investments to modify production lines in order to manufacture power-saving appliances they can then sell at prices that are attractive to consumers,” Shashank Jain, an energy efficiency expert at Shakti Sustainable Energy Foundation, New Delhi, told SciDev.Net.
The loan awarded to India will also help improve energy efficiency in large industries, facilitate the transfer of solar technology and increase hydropower.