The Government of Goa today announced that it will be setting up a Blended Finance facility in partnership with the World Bank. This will be a first-of-its-kind, climate-focused, multi-sectoral facility at a subnational level that will enable Goa to access and mobilize concessional finance to implement low-carbon and climate-resilient investments. Blended finance- inclusive of public, private, international, and domestic climate finance- has the potential to help Goa and other coastal states in India build greater resilience to the impacts of a rapidly warming climate.
The Blended Finance facility was announced at the 2024 edition of the World Bank’s India Climate and Development Partners’ Meet, an annual conference of thought leaders and changemakers in the climate sector. The conference is being held in Panaji from February 19 to 21, and is jointly hosted by the Government of Goa and the World Bank.
Given the wide range of sectors identified by the Blended Finance facility framework, the Department of Environment, Government of Goa, signed Memorandum of Understanding (MoUs) with G.S. Rawat, Deputy Chairman, National Bank for Agriculture and Rural Development (NABARD), S Ramann, Chairman & Managing Director, Small Industries Development Bank of India (SIDBI), and Parminder Chopra, Chairperson and Managing Director, Power Finance Corporation (PFC).
The facility will play two key roles: (1) assist projects with existing funding and/or established commercial viability to access financing, and (2) channelize financing to projects/sectors with no existing funding, below market rate returns, or unattractive risk/return profile. It will serve as a crucial bridge between green financing mechanisms and domestic capital markets, attracting private capital investments for climate action. By integrating carbon markets and harnessing green credits, the programme will ensure its sustainable operation and continuous re-capitalization.
Addressing the India Climate and Development Partners Meet, Shri Pramod Sawant, Hon’ble Chief Minister of Goa, said, “Resilience is a crucial aspect of our vision for a Santulit (balanced) Goa that bridges economy and ecology and balances our aspirations for the health of our ecosystems and the development and wellbeing of our people. This Blended Finance Facility will enable us to embed and operationalize greater resilience in our planning, investments, and infrastructure. We look forward to empowering our communities with the new technologies and business models that will be crucial in our response to climate change.”
The facility aims to support the Government of Goa’s vision of Samruddhi, Santulan and Suramyata– in alignment with Viksit Goa 2047. This includes operationalization of Goa’s State Action Plan on Climate Change (2023-2033) which entails building institutional and technical capacity, investing in resilient infrastructure, re-skilling for high-productivity jobs, and orienting the local economy around more resilient livelihoods. Key sectors that will benefit from blended finance investments include e-mobility and related infrastructure, renewable energy, biodiversity conservation, coastal protection and green tourism.
“Blended finance innovations can help mobilise high-risk projects that generate positive, measurable social and environmental results – including better and more sustainable products and services for consumers. We look forward to working with Goa to implement climate-resilient investments towards the well-being of its people and the environment,” said Jennifer Sara, Global Director, Climate Change Global Practice, World Bank.
“This facility has the potential to be replicated and scaled in India at the sub-national level. Done right, it helps private gains to reinforce public good and unlock a multi-trillion-dollar opportunity to fund green growth and create new jobs,” said Abhas K. Jha, Practice Manager, South Asia Region Climate Change and Disaster Risk Management at the World Bank.
The India Climate and Development Partners Meet has brought together policymakers, financial institutions, businesses, and community representatives, to discuss opportunities for leveraging finance for adaptation, replicating successful state-driven climate solutions, and mainstreaming climate considerations in government investments and budgets. Areas of deliberation and mutual collaboration at the conference include innovation in climate financing, leveraging technology for climate action, sustainable cooling, community-led resilience, and coastal resilience.