UK unveils USD 1.2 billion package to drive India’s green growth

The UK and India have unveiled a USD 1.2 billion package of public and private finance to help drive green growth in the latter country.

The package includes a USD 1 billion investment from CDC, the UK’s development finance institution in green projects in India, joint investments by both governments to support companies working on innovative green tech solutions, and a new USD 200 million private and multilateral investment into the joint Green Growth Equity Fund which invests in Indian renewable energy.

UK Chancellor Rishi Sunak
UK Chancellor Rishi Sunak. Photo courtesy:

Both the countries also welcomed the launch of the Climate Finance Leadership Initiative (CFLI) India partnership to mobilise private capital into sustainable infrastructure in India, including clean energy like wind and solar power and other green technologies.

The partnership will be led by a group of leading financial institutions responsible for $6.2tn of assets and chaired by Michael Bloomberg, UN Special Envoy on Climate Ambition and Solutions.

UK Chancellor Rishi Sunak and the Indian Finance Minister Nirmala Sitharaman also agreed to be ambitious when considering services in the upcoming UK-India trade negotiations.

Sunak said, “The UK and India already have strong ties, and today we’ve made important new agreements to boost our relationship and deliver for both our countries. Supporting India’s green growth is a shared priority so I’m pleased that we’ve announced a USD 1.2 billion investment package, and launched the new CFLI India partnership, to boost investment in sustainable projects in India as the UK gears up to host COP26. With trade negotiations also coming up, our agreement to be ambitious when considering services will create new opportunities in both markets, supporting jobs and investment in the UK and India.”