JICA signs loan agreement with TCCL for climate change project
The Japan International Cooperation Agency (JICA) signed a loan agreement for a maximum amount of 10 billion yen with the Tata Cleantech Capital Limited (TCCL) to support the company to offer loans to businesses across India that focus on renewable energy generation, e-mobility solutions as well as energy efficiency, to help mitigate the effects of climate change by reducing the emission of greenhouse gas (GHG) following the Green Loan Principles.
This loan will be provided through Private Sector Investment Finance scheme of JICA and is co-financing with the Sumitomo Mitsui Banking Corporation (SMBC).
The government has ratified the Paris Agreement in 2016, in which India has committed to cut GHG emissions intensity of its GDP by 33-35 per cent by 2030.
In order to achieve the target, the government is promoting mitigation measures such as installation of renewable energy (solar power, wind power etc.), energy efficient equipment, and electric vehicles (EVs).
JICA’s loan will support TCCL to mitigate the impact of climate change by offering green finance, which will contribute to decrease the emission of GHG in India.
It will also contribute to SDGs (Sustainable Development Goals) Goals 7 and 13.
