ADB and GCF launch India Green Finance Facility

The Asian Development Bank (ADB), in partnership with the Green Climate Fund (GCF), has launched the India Green Finance Facility (IGFF) with $200 million in concessional funding approved by GCF. This is ADB’s first GCF-backed programme in India.

The IGFF aims to mobilise large-scale public and private investments in emerging clean energy technologies, including round-the-clock renewable energy, green hydrogen, compressed biogas, decentralised solar, and electric transport for rural areas.

The facility will operate through blended finance by extending credit lines to national development finance institutions (DFIs), which will manage a pipeline of eligible clean energy projects.

A central feature of the programme is a $65 million risk-sharing facility that will provide partial credit guarantees to help small developers access finance for compressed biogas projects, an area that often struggles to attract funding from commercial lenders.

The IGFF is also expected to build institutional capacity within Indian DFIs to scale up climate-focused lending and support India’s net-zero goal by 2070. The GCF Board approved the funding at its 42nd meeting on July 1, 2025.