India Green Finance Facility (IGFF)

Context : On 3 July 2025, the Asian Development Bank (ADB) and the Green Climate Fund (GCF) announced a major clean energy initiative in India through the launch of the India Green Finance Facility (IGFF).

Key Highlights:

• Funding: GCF approved $200 million in concessional finance for the program.

• Goal: To catalyze large-scale public and private investment in emerging clean technologies in India.

• Technologies Supported:

  • Round-the-clock renewable energy

  • Green hydrogen

  • Compressed biogas

  • Electric mobility in rural areas

  • Decentralized renewable energy solutions

How It Works:

• Blended Finance Model: ADB will provide lines of credit to India’s Development Finance Institutions (DFIs) to fund clean energy projects.

• Risk Mitigation: Includes a $65 million risk-sharing facility to offer partial credit guarantees, especially for compressed biogas projects which are usually considered risky by commercial lenders.

• Target Sectors: Focus on hard-to-decarbonize sectors like industry, agriculture, and transport, helping India progress toward its net-zero by 2070 goal.

Strategic Importance:

• First ADB–GCF partnership in India.

• Enhances India's financial sector capacity to support clean energy transitions.

• Serves as a blueprint for concessional finance-led climate transformation in developing economies.