- Region: Asia
- Infrastructures
- Environment
- Untied Loans
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on January 15 a General Agreement to set up a credit line totaling up to JPY120 billion, of which the JBIC portion is JPY72 billion, with Power Finance Corporation Limited (PFC), a government financial institution in India*1.
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The credit line is intended to finance, through PFC, the necessary funds for energy projects in India, such as renewable and next-generation energy supply as well as energy-saving power generation and heat supply, as part of GREEN operations*2.
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In India, the economic growth rate is high, and the demand for electric power is expected to grow. At the same time, however, the country, which is the world's third largest emitter of CO2, has an urgent need to address climate change. The government of India pledged on the country's Independence Day in August 2021 that India will become "energy independent" by 2047, and at COP26 in November 2021, it committed to realizing carbon neutrality by 2070. It also aspires to achieve 50% cumulative electric power generation from non-fossil-fuel-based energy resources by 2030 as its Nationally Determined Contribution (NDC), an action plan to address climate change under the Paris Agreement. Under these circumstances, the government is introducing renewable energy and promoting countermeasures against climate change, such as the enhancement of green hydrogen production capacity and the dissemination of energy efficiency technologies. In addition, with the launch of the Clean India Mission, the government is focusing on waste-to-energy throughout India.
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PFC is a company owned by the government of India, specializing in offering financial support to the power and infrastructure sector and is an important institution for realizing the government’s electricity policy. Through the credit line, JBIC supports efforts made by the government of India and PFC to preserve the global environment.
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As Japan's policy-based financial institution, JBIC will continue to financially support initiatives for global environmental preservation by drawing on its various financial facilities and schemes and by performing its risk-assuming function.
Note
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This is the second credit line to PFC, following the first one set up in July 2022.
- *2