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New EU fund for Indian climate change projects

business Updated: Feb 07, 2009 10:26 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The European Union will soon launch a programme, initially through a 300 million euro amount from the European Investment Bank, to invest in renewable energy projects in India.

Czech Deputy Prime Minister Martin Bursik announced this on Friday while visiting New Delhi following the EU’s adoption of its new climate and energy package. The Czech Republic holds the rotating EU presidency.

Half of the amount will be lent through the Export-Import Bank, the other half through the Environmental Development Agency. This programme still faces “bureaucratic hurdles.” For example, said EU officials, the finance ministry still has to provide sovereign guarantees.

This fund is only the first step of what could be a larger transfer of funds to India for climate change purposes. Under the new EU carbon policy, half the money earned by Brussels through the auction of carbon credits can be used to fund climate change projects in developing countries.

Bursik was pleased India had listed 1,300 climate change projects for EU climate change funding.