Goa Govt, PFC Collaborate To Set Up Blended Finance Facility With World Bank

Goa Gov, PFC Collaborated To Set Up Blended Finance Facility With WB

Power Finance Corporation (PFC), a NBFC, power sector PSU and renewable energy financier in India, collaborated to support the climate ambitions in Goa. They signed a Memorandum of Understanding (MoU) to support the climate ambitions of the state of Goa. The support extended would be under the Blended Finance Facility being set up by Goa Government in partnership with World Bank (WB).

Goa is setting up the sub-national Blended Finance Facility in partnership with the World Bank, aiming to foster low-carbon, climate-resilient development.

Under the MoU, PFC plan to utilize innovative blended finance mechanisms to fund key climate projects such as renewable energy, green hydrogen, electric vehicles, waste-to-wealth technology and nature-based solutions, thus contributing to Energy Transition. The Government of Goa claims to facilitate the successful implementation of the facility by identifying and developing a pipeline of climate projects and promoting policy decisions and facilitating stakeholder collaboration to take those projects forward. PFC and the Government of Goa plans to pool resources and expertise, aiming to advance sustainable development. The agreement thus pioneers blended financing facility in India and seeks to attract private sector investment in climate initiatives, thus contributing to India’s ambitious net-zero goals.

The agreement has been signed at the two-day India Climate and Development Partners’ Meet in Goa today, February 20, 2024, in the presence of the Chief Minister of Goa, Pramod Sawant. Speaking about the MoU, Chief Managing Director (CMD), PFC, Parminder Chopra said, “India is committed to achieving ‘Panchamrit’ and Net Zero emissions by 2070; and 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 collaboration between PFC and the Government of Goa marks a historic milestone in green financing, under which PFC claims to lend its financial expertise to drive climate initiatives and catalyze energy transition through emerging technologies. The initiative is an innovative partnership between government of goa and the world bank on the one hand and leading financial institutions PFC, SIDBI and NABARD on the other, to finance climate action priorities.