The Government of Goa has joined forces with Power Finance Corporation (PFC), a leading non-banking financial company (NBFC) and the largest renewable energy financier in India, to establish a subnational Blended Finance Facility for Climate Action. The partnership was formalized through the signing of a Memorandum of Understanding (MoU) at the two-day India Climate and Development Partners’ Meet in Goa.
Under the visionary collaboration, PFC will leverage innovative blended finance mechanisms to fund crucial climate projects in Goa. These projects will encompass areas such as renewable energy, green hydrogen, electric vehicles, waste-to-wealth technology, and nature-based solutions, aligning with the global commitment to energy transition. The Blended Finance Facility is being set up in collaboration with The World Bank, aiming to foster low-carbon, climate-resilient development within the state.
The Government of Goa, as a key facilitator, will play a pivotal role in identifying and developing a pipeline of climate projects. Additionally, it will champion policy decisions and foster stakeholder collaboration to ensure the successful implementation of the facility. The collaborative efforts of PFC and the Government of Goa aim to pool resources and expertise, advancing sustainable development in the region.
The MoU signed on Tuesday marks a historic milestone in green financing, as it pioneers the concept of blended financing in India. The agreement is designed to attract private sector investment in climate initiatives, contributing significantly to India’s ambitious net-zero goals. Speaking about the collaboration, Chief Minister of Goa, Dr. Pramod Sawant, expressed enthusiasm about the state’s commitment to sustainable development and climate action.
CMD of PFC, Smt. Parminder Chopra, emphasized the corporation’s role in aligning with India’s commitment to achieving ‘Panchamrit’ and Net Zero emissions by 2070. She stated, “PFC is going to play a pivotal role in aligning with the government’s commitment to Net Zero through this milestone initiative in the area of blended financing for achieving energy transition.”
The partnership between PFC and the Government of Goa is part of an innovative collaboration involving The World Bank, PFC, SIDBI (Small Industries Development Bank of India), and NABARD (National Bank for Agriculture and Rural Development). Together, these entities aim to finance climate action priorities, driving forward the implementation of crucial initiatives that address the pressing challenges of climate change.
