The European Investment Bank (EIB) has granted a €200 million (£165.5m) loan to finance projects that will help mitigate climate change in India.
India Infrastructure Finance Company Limited (IIFCL) will lend the cash to private companies for investments in renewable energy, energy efficiency and other projects that help cut greenhouse gas emissions in the country.
The EIB will ensure the projects are economically and financially viable and in compliance with its social and environmental standards.
It said: “The Framework Loan will support the EU-India Strategic Partnership in the area of climate change, fostering the development of renewable energy and the efficient use of energy. It will also contribute to meeting energy demand and thus encourage economic growth and development in India.”
Earlier this week a major UN report warned the world is “ill-prepared” to tackle the potential risks of climate change.