The Bloomberg Philanthropies and Goldman Sachs-backed Climate Innovation and Development Fund has completed its first set of blended-finance investments focused on innovation across the sustainable transport sector in India and Vietnam.
These initial investments are the first realisation of the Fund’s potential to unlock up to $500 million in private sector and governmental investments in support of sustainable low-carbon economic development with a focus on South and Southeast Asia.
David Solomon, Chairman and CEO of Goldman Sachs, said, “By encouraging more private capital to support projects like these, the Climate Innovation and Development Fund will accelerate the decarbonization of mass transportation in India and Southeast Asia and make further progress in the journey of climate transition.”
ADB President Masatsugu Asakawa said, “Mobilising capital at scale is critical in the battle against climate change, especially in Asia and the Pacific where this global fight will be won or lost.”
In India, the Fund’s investment will mobilise approximately 14 times its investment capital to support the purchase of 255 electric buses to replace existing diesel buses operating on 56 high traffic intercity routes across cities, including Delhi and Pune, and the states of Andhra Pradesh, Karnataka, Tamil Nadu, and Telangana.
The e-buses are expected to serve five million people per year and include enhanced safety features for female passengers. Additionally, the Fund will support the construction of charging infrastructure including solar-plus-battery solutions at the bus depots to maximise potential emission reductions.