By investing in green funds and projects in the country ranging from metro systems to battery storage, the EU lending arm aims to accelerate India’s path to net-zero in 2070 while feeding private capital and creating jobs, EIB Vice President Nicola Beer said in an email interview.
“In areas such as battery storage, electric vehicles and the circular economy, the EIB can support both individual projects and platforms with a range of new developments. It is also able to provide last-mile financing to bring projects to completion or revive those that have stalled due to lack of capital,” Beer said.
The EIB aims to help India achieve its climate ambitions while creating jobs, improving public health and spurring private investment in green technologies, she said.
The cornerstone of this strategy is the India Energy Transition Fund, in which EIB Global has invested $60 million. The aim of the fund is to release growth capital for projects in the field of renewable energy, energy efficiency and electric mobility, especially in sectors where access to finance remains limited.
Acting as a catalyst investor, the EIB expects to raise additional private capital and de-risk early-stage projects critical to India’s clean energy deployment.
Sustainable growth
“India’s Energy Transition Fund, meanwhile, is about expanding renewables, energy efficiency and circular economy solutions, which are key to India’s net-zero ambitions,” Beer said, adding that it also focuses on investment opportunities in storage, EV supply chains and circular economy businesses, which tend to focus on sustainability and approach “reduce reuse and recycle”.
In terms of accelerating decarbonisation and green infrastructure, India is aiming for 500 GW of non-fossil fuel capacity by 2030, meeting 50% of its energy needs from renewable sources and achieving net zero emissions by 2070.
The country also plans to reduce projected carbon emissions by 1 billion tons and reduce carbon intensity below 45% by 2030 through a combination of renewable energy expansion, green hydrogen production, smart grids and better waste management.
Key initiatives in the sector include scaling up solar, wind and offshore wind farms, advancing green hydrogen under the National Green Hydrogen Mission, modernizing the power grid with smart technologies, expanding EV charging networks and strengthening municipal waste management through the Swachh Bharat Mission-Urban 2.0.
The country’s renewable energy capacity has already grown five-fold, from 24 GW in FY15 to 136 GW in FY25, highlighting India’s rapid transition to a low-carbon, climate-resilient economy that balances growth, sustainability and inclusion.
In addition to energy, EIB Global is extending its climate-related financing to urban infrastructure and basic services with an emphasis on inclusion and sustainability.
“Cleaner water and better sanitation will mean better quality of life, especially for low-income families who are most at risk of poor water and sanitation, fewer hospital visits and lower health care costs,” Beer said, adding that this will directly improve the living conditions of low-income families while reducing emissions through better resource efficiency.
The EIB is financing the expansion of Nagpur and Pune metro rail services, which is likely to reduce transport-related carbon emissions by 22%. Fully electric and integrated with other public transport, the project will ease traffic congestion and improve air quality in two of India’s fastest growing cities.
In Uttarakhand, the bank’s $191 million investment, its first dedicated water project in India, will upgrade water supply and sanitation systems in smaller towns, provide drinking water for nearly 900,000 people and improve sanitation for 350,000, while incorporating energy-efficient and sustainable water management practices.
“This approach fosters innovation by supporting companies and projects at the forefront of India’s clean energy and decarbonisation journey, while creating opportunities for technology and investment flows between India and the EU,” Beer said.
“In short, building a better life for people and generating revenue with green investments go hand in hand,” she concluded, proposing a green-themed plan for inclusive growth.
