World Bank-ISA agreement assure funds of $1tn by 2030

New Delhi: Narendra Modi’s solar goals will see a new summit as World Bank signed an agreement with India-led International Solar Alliance (ISA) today, to mobilize investment worth $1 trillion by 2030, to help fund projects thus increasing the solar energy use around the world.

Following this agreement, World Bank Group became a potential financial partner for 121-nation ISA.

The agreement was signed in the presence of World Bank President Jim Yong Kim, Finance Minister Arun Jaitley and New and Renewable Energy Minister Piyush Goyal.

ISA was initiated by Prime Minister, Narendra Modi and French President Francois Hollande at the Paris United Nations Climate Change Conference, in November.

As part of the agreement, World Bank will develop roadmap and mobilize funding for development and deployment of the affordable solar energy. It also planned to take other multilateral development banks and financial institutions into consideration to raise financing instruments to support solar development.

Inspired by which, multilateral bank also announced its contribution of $1 billion to support India’s initiative to expand solar energy generation.

“The World Bank Group will do all it can to help India meet its ambitious targets, especially around scaling up solar energy,” Jim Yong Kim said.

The Indian government and the World Bank signed another agreement on Thursday for the $625 million Grid Connected Rooftop Solar Program. The project will finance the installation of at least 400 MW of solar Photovoltaic (PV) installations.

The solar investments for India combined would be the Bank’s largest financing of solar energy projects for any country in the world to date. According to it, the group lent around $4.8 billion to India between 2015 and 2016. As of June 2016, the Bank’s total commitments stood at $27 billion across 95 projects.