The World Bank's multilateral lending arm, International Finance Corporation (IFC), will provide $75 million (around Rs 338 crore) loan to Infrastructure Development Finance Corporation (IDFC) for investments in renewable energy, cleaner production and energy efficiency projects. This project is part of IFC's climate change strategy of partnering with financial intermediaries to scale up the impact for climate change projects in India.
The project will help IDFC scale up its capacity to assess renewable energy and energy efficiency projects. IDFC's client reach in the local market and IFC's expertise in climate change projects will reach a wider scale and impact on climate change investments in India. The expansion into climate change areas by a leading financial intermediary like IDFC is expected to help attract other financial institutions to increase their risk appetite and invest more in these sectors.