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Government-owned Power Finance Corporation (PFC) has signed a Memorandum of Understanding (MoU) to support the Goa government’s key climate projects such as renewable energy, green hydrogen and electric vehicles, waste-to-wealth technology and nature-based solutions, the Ministry of Power announced on Tuesday.

The support extended would be under the Blended Finance Facility being set up by Goa government in partnership with The World Bank to foster low-carbon, climate-resilient development.

Under the MoU, PFC will utilise innovative blended finance mechanisms to fund these climate projects and contribute to the energy transition of the state.

The Goa government will facilitate the successful implementation of the facility by identifying and developing a pipeline of climate projects, and promoting policy decisions and facilitating stakeholder collaboration to take those projects forward.

PFC and the state government will pool resources and expertise, aiming to advance sustainable development. The agreement thus pioneers blended financing facility in India and seeks to attract private sector investment in climate initiatives, thus contributing to India's ambitious net-zero goals.

The agreement was signed at the two-day India Climate and Development Partners’ Meet in Goa held on Tuesday in the presence of the Chief Minister Pramod Sawant.

The collaboration between PFC and the Government of Goa marks a historic milestone in green financing, under which PFC will lend its financial expertise to drive climate initiatives and catalyse energy transition through emerging technologies.

The initiative is an innovative partnership between government and the World Bank on the one hand and leading financial institutions PFC, SIDBI and NABARD on the other, to finance climate action priorities.