New Delhi, Jun 30 (IANS): The World Bank has cleared $1.5 billion financing to accelerate India's low carbon transition.

In a statement issued on Friday, the global lender said the funding will incentivise India's transition towards low-carbon energy by scaling up renewable energy, developing green hydrogen and stimulating climate finance for low-carbon energy investments.

"The programme will support the successful implementation of the National Green Hydrogen Mission that aims to stimulate $100 billion in private sector investment by 2030," said Auguste Tano Kouame, World Bank Country Director for India.

The programme plans to push renewable energy supply by reducing costs and improving power grid integration, while helping India reach its committed 500 gigawatts (GW) of renewable energy capacity by 2030.

The World Bank reiterated that it will support India in developing green hydrogen.

The low-carbon hydrogen energy is produced by electrolysis of water powered by renewable energy.

The lender further said that while India's per capita energy consumption was only one-third of the global average, demand was expected to grow rapidly with the expansion of the economy.

This calls for phasing down of fossil-based energy sources in line with India's goal of achieving net-zero by 2070, the statement added.