The Power Finance Corporation (PFC) signed a memorandum of understanding (MoU) with the Goa government to fund the state’s green energy ambitions through a blended finance facility. Under the MoU, PFC will provide financial support for Goa’s pivotal climate-related projects. These include initiatives in renewable energy, green hydrogen, electric vehicles, converting waste to wealth, and nature-based solutions, all contributing to an energy transition. PFC will lend its financial expertise to drive climate initiatives and catalyze energy transition through emerging technologies, according to a company statement.
“This initiative is an innovative partnership between the Government of Goa and the World Bank on the one hand and the leading financial institutions PFC, SIDBI and NABARD on the other to finance climate priorities,” it said.
The state government will facilitate the successful implementation of the facility by identifying and developing a pipeline of climate projects, promoting policy decisions and facilitating collaboration among stakeholders.
This joint effort by the PFC and the Goa government seeks to promote sustainable development by introducing a blended financing model in India. The initiative aims to attract private sector investments towards climate actions, aligning with India’s ambitious net-zero objectives.
The Government of Goa also announced a groundbreaking partnership with the World Bank to establish a pioneering Blended Finance facility aimed at bolstering climate resilience. This unprecedented initiative marks a significant step towards accessing and mobilising concessional finance to implement low-carbon and climate-resilient investments in Goa, setting an example for other coastal states in India.
The announcement of the Blended Finance facility was made during the 2024 edition of the World Bank’s India Climate and Development Partners’ Meet, a prestigious annual conference held in Panaji from February 19 to 21.
Chief Minister Dr Pramod Sawant stated that Goa is now more confident to achieve its climate goals after setting up a Blended Finance Facility in the State in partnership with the World Bank.
Dr Sawant made this statement in the presence of Environment Minister Aleixo Sequeira during the signing of the Memorandum of Understandings (MoUs) between the Department of Environment and the National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), and Power Finance Corporation (PFC).
These partnerships underscore the collaborative effort to drive sustainable climate action and resilience-building initiatives in the region.
The facility is designed to play a dual role: firstly, assisting projects with existing funding or established commercial viability to access financing, and secondly, channeling financing to projects and sectors with no existing funding or unattractive risk/return profiles. By bridging green financing mechanisms with domestic capital markets, the facility aims to attract private capital investments for climate action, thus facilitating the transition towards a sustainable and resilient future.
Dr Sawant further added, “Resilience is a crucial aspect of our vision for a Santulit (balanced) Goa that bridges economy and ecology and balances our aspirations for the health of our ecosystems and the development and wellbeing of our people. This Blended Finance Facility will enable us to embed and operationalise greater resilience in our planning, investments, and infrastructure. We look forward to empowering our communities with the new technologies and business models that will be crucial in our response to climate change.”
Dr Sawant pointed out that Goa will become the first state to receive funds under the Blended Finance Facility from the World Bank
Aligned with the state’s vision of “Samruddhi, Santulan, and Suramyata” as outlined in Viksit Goa 2047, the facility will support Goa’s State Action Plan on Climate Change (2023-2033).
Key sectors earmarked to benefit from blended finance investments include e-mobility, renewable energy, biodiversity conservation, coastal protection, and green tourism.
Commenting on the initiative, Jennifer Sara, Global Director, Climate Change Global Practice, World Bank, emphasised the transformative potential of blended finance innovations in mobilizing resources for climate-resilient projects.
Sara said, “Blended finance innovations can help mobilise high-risk projects that generate positive, measurable social and environmental results – including better and more sustainable products and services for consumers. We look forward to working with Goa to implement climate-resilient investments towards the well-being of its people and the environment”.
She reiterated the World Bank’s commitment to collaborating with Goa to implement sustainable investments for the well-being of its people and the environment.
Abhas K. Jha, Practice Manager, South Asia Region Climate Change and Disaster Risk Management at the World Bank, highlighted the scalability of the facility, emphasizing its potential to be replicated and expanded at the sub-national level in India.
He underscored the opportunity presented by blended finance to unlock green growth, create new jobs, and drive sustainable development.
Jha said, “This facility has the potential to be replicated and scaled in India at the sub-national level. Done right, it helps private gains to reinforce public good and unlock a multi-trillion-dollar opportunity to fund green growth and create new jobs”.
The India Climate and Development Partners Meet is a platform for policymakers, financial institutions, businesses, and community representatives to explore opportunities for leveraging finance for adaptation and mainstreaming climate considerations in government investments and budgets.
Deliberations at the conference include topics such as innovation in climate financing, sustainable cooling, community-led resilience, and coastal resilience, among others.
The collaboration between the Government of Goa and the World Bank through the Blended Finance facility marks a significant milestone in advancing climate resilience and sustainable development in the region, setting a precedent for transformative climate action on a global scale.
