The International Finance Corporation (IFC) is partnering with Axis Bank to provide a $500 million loan to help develop a blue finance market and scale up financing of green projects in India.

The funding will also aid in expanding Axis Bank’s climate finance portfolio. Besides tackling climate change issues, the loan will be utilized to develop offshore renewable energy.

IFC will support Axis Bank in growing its green buildings portfolio, including affordable housing projects and building capacity for impact reporting. Through this engagement, IFC aims to catalyze the green buildings market in India.

IFC will also provide a performance-based incentive of up to $2.9 million from the UK-IFC Market Accelerator for Green Construction program to support the design and construction of green buildings certified by IFC’s EDGE (Excellence in Design for Greater Efficiencies) green buildings standard.

“The green buildings sector presents an investment opportunity of $1.4 trillion by 2030, driven by a need for sustainable infrastructure. Most of these investments need to come from the private sector to offset limited public funding,” IFC said.

Managing Director of IFC, Makhtar Diop, said, “India serves as an exceptional testing ground for innovative approaches to climate adaptation. This loan will not only catalyze private sector investment in this emerging asset class but also direct long-term funding toward fostering a sustainable blue economy. Additionally, it aims to enhance financing for climate projects across India, with a strong emphasis on green buildings that will mitigate climate change impacts and generate jobs.”

In June 2024, the IFC agreed to partially finance a $105 million investment in Brookfield Asset Management’s 550 MW solar power project in Bikaner, Rajasthan.

Recently, Axis Bank also funded around $170 million for a 200 MW wind-solar hybrid power project in Madhya Pradesh, which is being developed by Blueleaf Energy.