• The UK will provide an “India Green Guarantee” to the World Bank, to unlock an additional 750 million pounds for green projects across India which was announced at the COP26 summit in Glasgow.
• The UK Prime Minister emphasised the importance of providing climate finance for the developing world, the democratisation of green tech and other solutions to the climate crisis at an Action and Solidarity Roundtable at COP26.
• The green guarantee financing will support clean and resilient infrastructure in sectors such as clean energy, transport and urban development.
• Further, in an aid-backed Private Infrastructure Development Group (PIDG), the UK has committed more than 210 million pounds in new investment at the UN climate summit to back transformational green projects in developing countries, including electric vehicles (EVs) in India.
• The U.K.’s PIDG financing will go to schemes including electric vehicle manufacturing in India, green bonds in Vietnam and solar power in Burkina Faso, Pakistan, Nepal and Chad – projects which are expected to mobilise more than 470 million pounds in additional private sector finance.
• The “Clean Green Initiative” was also launched at COP26 to help developing countries take advantage of green technology and grow their economies sustainably.
• The funding kickstarts the U.K.’s new Clean Green Initiative (CGI), which will help to scale up public and private investment in quality, sustainable infrastructure globally.
• In addition, the UK also announced a package of guarantees to multilateral development banks that will provide a major boost to investments in climate-related projects in India and across Africa.
Mains Paper 3: Environment
Prelims level: Clean Green Initiative
Mains level: Key highlights of the initiative