The Japan Bank for International Cooperation (JBIC), led by Governor Nobumitsu Hayashi, recently finalized a significant financial deal with NTPC Renewable Energy Limited (NREL) of India, marking a substantial move towards supporting renewable energy projects within the country. The agreement, signed on March 26, involves a loan of up to JPY15 billion, with JBIC directly contributing JPY9 billion. This funding effort is also bolstered through collaboration with Sumitomo Mitsui Banking Corporation and the Bank of Fukuoka, Ltd., with JBIC additionally providing guarantees for the portions financed by these private entities.
NREL, operating under NTPC Limited – India’s premier state-owned power entity, will utilize these funds to expand its renewable energy ventures, aligning with JBIC’s GREEN operations initiative. This financial backing arrives at a pivotal moment, following India’s 2021 pledges to attain energy independence by 2047 and achieve carbon neutrality by 2070. These commitments were made during the country’s Independence Day celebrations and reiterated at the COP26 summit, highlighting a strategic shift towards non-fossil fuel-based energy sources, targeting a 50% share in electric power generation by 2030. This target is part of India’s broader commitment to combating climate change, as outlined in its Nationally Determined Contribution under the Paris Agreement, including the promotion of renewable energy and electric vehicles (EVs).
By supporting NREL’s renewable energy projects, JBIC is actively contributing to India’s environmental goals and the global fight against climate change. As a policy-based financial institution, JBIC reaffirms its commitment to environmental preservation through strategic investments and risk management, fostering a sustainable future.