Bank loan

UK to back $1bn World Bank loan to India for green infrastructure: report

British Prime Minister Boris Johnson is reportedly set to announce that his country will guarantee a $1 billion World Bank loan to India for green infrastructure, according to sources who spoke to Reuters.

Several sources familiar with the matter confirmed the plans to Reuters on Monday. The announcement will likely be made at the 2021 United Nations Climate Change Conference, known as COP26, in Glasgow, where many world leaders have gathered, including Indian Prime Minister Narendra Modi, who confirmed his intention to attend at the last minute.

“The UK’s biggest funding offer to India at COP26 will be a $1 billion sovereign guarantee for additional World Bank lending for green infrastructure,” a source told Reuters.

India is the world’s third largest CO2 emitter, behind China and the United States. Reuters noted that India had called on rich countries to pledge to spend more than $100 billion, which it pledged to do in 2009, to help poorer countries meet the rising global temperatures.

India’s Environment Minister Bhupendra Yadav said he would measure the success of COP26 by the amount of funding given to developing countries.

Although India plans to continue adding renewable energy sources to its mix, it has refrained from committing to a net-zero emissions target.

Indian environment officials last week rejected calls for a net-zero emissions target, arguing that focusing on reducing emissions is more important than simply announcing specific targets.

“It’s how much carbon you’re going to put into the atmosphere before you hit net zero that’s more important,” India’s environment secretary RP Gupta said.