UK and India agree $1.2bn package supporting renewable energy, sustainable infrastructure and tech

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With less than two months to go until COP26, the UK and Indian governments have agreed upon a new $1.2bn (£900,000) package of funding designed to accelerate the low-carbon transition.

The package was agreed upon today (2 September) at the 11th Economic and Financial Dialogue between the two nations, hosted over video call and attended by UK Chancellor Rishi Sunak and Indian finance minister Nirmala Sitharaman.

Called the Climate Finance Leadership Initiative (CFLI) India partnership, the package consists of both public funding from the two national governments, and commitments to mobilise investment from the private sector. $1bn will come from the UK’s development finance institution, CDC Group, and will be allocated across the fields of low-carbon energy, infrastructure and technologies.

The remaining $200m will come from private and multilateral investment into a Green Growth Equity Fund which invests in India’s renewable energy sector. India notably has an ambitious target to host 175GW of renewable electricity generation by 2022, up from 94.5GW as of February 2021.

The timeline for raising and allocating the $1.2bn has not yet been confirmed. However, the UK Government has stated that the CFLI India partnership will build on the existing CFLI group, which convenes financial organisations with more than $6.2trn of assets under management collectively. Michael Bloomberg, the UN’s Special Envoy on Climate Ambition and Solutions, leads the existing CFLI.

UK and India agree $1.2bn package supporting renewable energy, sustainable infrastructure and tech

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