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GCF Approves USD 200 Million for ADB’s India Green Finance Facility to Accelerate Emerging Clean Energy.

Banking & Finance | Dated: 05 Jul 2025

On July 1, 2025, the Green Climate Fund (GCF) approved USD 200 million in concessional financing to support the Asian Development Bank’s (ADB) India Green Finance Facility (IGFF), unlocking large-scale investments in India’s emerging clean energy sectors.

🎯 Key Highlights:

  • - The IGFF, led by ADB and backed by GCF, aims to crowd-in public and private capital by providing lines of credit to Development Finance Institutions (DFIs). Focus sectors include round-the-clock renewable power, green hydrogen, compressed biogas, electric transport, and decentralised clean energy.
  • - A pivotal feature is the USD 65 million risk-sharing facility, offering partial credit guarantees. This facility helps small and green start-ups secure affordable financing—especially in compressed biogas projects—overcoming the challenge of high lender risk aversion.
  • - IGFF marks ADB’s first climate finance collaboration with GCF in India. Pradeep Tharakan, ADB’s Director for Energy Transition, noted it is a key milestone that supports India’s pathway to net-zero emissions by 2070, while decarbonising difficult sectors.

💡 Other Important Facts:

  • (i) The programme boosts capacity of DFIs across India to fund emerging technologies. It offers a blueprint for scalable green finance, positioning India as a global leader in clean energy transition and encouraging institutional readiness for climate-aligned investment.
  • (ii) IGFF’s focus on sectors like industry, agriculture, and rural transportation addresses carbon-intensive areas less reliant on renewables. This enhances the shift toward sustainable development models, promoting equitable energy access and climate resilience.
  • (iii) Hemant Mandal, GCF Director for Asia and Pacific, emphasised the initiative's role as "innovative, high-impact climate solution" supporting sustainable growth and climate resilience in the region, reinforcing GCF’s mission.

📚 Test Your Knowledge:

Recently, how much funding has the Green Climate Fund (GCF) approved for the Asian Development Bank's India Green Finance Facility (IGFF)?

Correct Answer: USD 200 million

🚀 Quick Recap:

About ADB

  • President: Masato Kanda
  • Headquarters: Mandaluyong City, Philippines