UK and India launch £0.87bn Green Growth Initiative

The UK and India have announced a £0.87bn public and private finance package to help drive India’s green growth.

The package includes joint investments from the Indian and British governments to support  companies working on innovative green tech solutions. This includes a £0.7bn investment from CDC, Britain’s development finance institution, and a new £144.7m private and multilateral investment in the joint Green Growth Equity Fund, which invests in Indian renewable energy projects.

At the same time, the Climate Finance Leadership Initiative (CFLI) India partnership has been launched to increase private investment in sustainable infrastructure in India, including green energy sources like solar and wind power.

The partnership will be chaired by Michael Bloomberg, the UN Special Envoy on Climate Ambition and Solutions, and led by a group of financial institutions that are jointly responsible for £4.5 trillion of assets.

The investment and initiative were officially announced at the 11th Economic and Financial Dialogue (EFD) yesterday, where UK Chancellor Rishi Sunak met with Indian Finance Minister Nirmala Sitharaman to discuss green investments, climate change strategy and the two nations’ shared vision for green growth.

“The UK and India already have strong ties,” said Sunak, who is of Indian heritage himself, “and today we’ve made important new agreements to boost our relationship and deliver for both our countries.”

He added that supporting India’s green growth was a shared priority, and that with the UK gearing up to host COP26 – and trade negotiations also on the horizon – the agreement would create new opportunities in both countries and support investment and jobs in both India and the UK.