The United Kingdom’s development finance institution, CDC group has announced a $30 million credit facility to Tata Cleantech Capital. The deal marks the first green loan facility which has been offered by the CDC group. The investment will allow Tata Cleantech to provide loans to businesses across the country with an emphasis on e-mobility solutions, water, and energy efficiency. As India is the fourth-largest emitter of greenhouse gasses and among the top ten in water consumption, the CDC’s green credit facility is expected to improve the pace of curbing emissions with increased efforts in renewable energy and e-mobility deployment.CDC will look to invest more of its long term capital in India’s green energy sector that will catalyse the shift to a net-zero carbon future.
Tata Cleantech Capital isa joint venture between Tata Power’s Tata Capital Limited and World Bank’s International Finance Corporation. The company is a private-sector green investment bank that specialises in climate finance and advisory services. Tata Cleantech Capitalhas financed over 220 projects and has been involved in the development of about 7.7 GW of renewable energy in the country. In 2019, the company received a $100 million credit from the Green Climate Fund to promote the deployment of rooftop solar capacities in India.
The CDC Group is a development finance institution owned by the UK government. The company has investments in over 1,200 businesses in emerging economies with total net assets of $8.91 billion and a portfolio of $6.45 billion. In December 2020, the company invested $70 million of equity funding in Ayana Renewables.