India’s Green Energy Gets More Funding Than Coal For Third Year

Indian investors have funded clean energy projects more than coal-based ones for a third straight year in 2020 as more lenders reduce funding for fossil fuels.

Renewable energy projects received 74 percent of the total amount of loans issued by Indian financial institutions last year, or 243.8 billion rupees ($3 billion), according to a report by New Delhi-based think tank Climate Trends and Centre for Financial Accountability.

The amount accounts for a 6 percent increase in approvals for clean energy projects from 229.71 billion rupees in 2019.

Meanwhile, only 26 percent of the 2020 funds — or 85.2 billion rupees — went to coal-fired plants, showing an 86 percent decline in approvals for coal plants since 2017.

Analysts expect the increasing preference for renewable energy over fossil fuel projects to continue after Prime Minister Narendra Modi unveiled ambitious goals for India to achieve net zero emissions by 2070 at the UN Climate Summit last month.

Modi’s plan includes having India generate half its electricity using green energy. Currently, the country’s energy mix is 40 percent renewable and 52 percent coal, according to government data.

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