E.U. agrees €150 million loan for climate change mitigation projects in India
The European Investment Bank and Exim Bank have signed a €150 million ($195 million) loan to support climate mitigation projects in India.
The loan will help to finance renewable energy projects such as wind, solar geothermal, hydro and biomass. It will also support energy efficiency projects like cogeneration and district heating.
The agreement is part of the E.U.-India Strategic Partnership and is aimed at expanding the E.U's presence in India and helping them to promote energy security and address climate change.
It is the second time that the E.I.B. has partnered with Exim Bank, India’s leading export finance institution, for this kind of loan. The first framework loan was signed in December 2008.
For the past 20 years, the bank has been providing loans in Asia and Latin America as part of the region’s cooperation policy with third countries. The current mandate covering the period 2007 to 2013 stated that the E.I.B. can lend up to €3.8 billion ($4.93 billion).
In 2011, the E.U. created a dedicated €2 billion ($2.6 billion) Climate Change Mandate for the bank to support climate change mitigation and adaptation projects across the regions. Additionally, in 2007, a €4.5 billion ($5.85 billion) financing facility was established to support investments in renewable energy, energy efficiency, and related climate change mitigation and adaptation projects in other sectors in emerging countries.