The European Investment Bank (EIB) today agreed a new partnership with the International Solar Alliance to mobilise finance to develop and deploy affordable solar energy in solar rich countries. The EIB also confirmed plans to provide a record EUR 800m for renewable energy investment across India.

The Joint Declaration was formally exchanged by Andrew McDowell, EIB Vice President and India at the 14th India – European Union summit. The ceremony was attended by Narendra Modi, Prime Minister of India, Donald Tusk, President of the European Council and Jean-Claude Juncker, President of the European Commission, and other senior political representatives from India and the European Union.

“Global cooperation is essential to tackle climate change and closer cooperation between the International Solar Alliance and the European Investment Bank will mobilise international climate finance and improve sharing of technical experience. This new agreement reflects our shared commitment to successful implementation of the Paris Climate Agreement and ensuring that solar rich economies can harness solar power to increase the supply of affordable clean energy.” said McDowell, European Investment Bank Vice President.

New cooperation with International Solar Alliance

Under the agreement the EIB, one of the world’s largest lenders for renewables energy and the world’s largest international public bank, will work with the International Solar Alliance to mobilize financing for development and deployment of affordable solar energy in ISA member countries.

“Closer cooperation between the European Investment Bank and the International Solar Alliance demonstrates the shared commitment of Europe and India to tackle climate change. Solar power has huge potential to provide affordable and clean energy in solar rich countries. Working with international financial institutions is crucial to mobilize climate finance and share technical expertise. The EIB’s unique experience of successfully supporting renewable energy expansion around the world will enhance the efforts of the ISA in the years ahead.” said H.E. Upendra Tripathy, Interim Director General of the International Solar Alliance.

The ISA is a global grouping of 121 countries and financial institutions established to harness solar energy. It was jointly launched by Indian Prime Minister Modi and French President Hollande at the COP 21 Paris climate conference.

Expected record EIB support for renewable energy investment across India

The EIB also confirmed than an expected EUR 800 million backing for small scale renewable energy projects across India had already been signed and approved in 2017, representing the EIB’s largest ever support for energy investment in Asia.

This includes renewable energy financing in partnership with the Indian Renewable Energy Development Agency (IREDA) and the India Infrastructure Finance Company approved earlier this year.

First EIB backing for Indian solar investment with private bank approved

The EIB is currently finalising a new EUR 200 million credit line to provide additional financing for renewable energy projects across India in cooperation with Yes Bank. Solar schemes are expected to represent the largest renewable energy sector backed by the programme. This first renewable energy partnership with a private bank in India is expected to be finalised in the coming months.

The European Investment Bank is one of the world’s largest financiers of climate action and over the last 5 years provided more than EUR 21 billion for renewable energy investment worldwide, including EUR 2.5 billion in photovoltaic and concentrated solar power projects