YES BANK Limited, India’s fifth largest private sector bank, made a major announcement for mobilizing USD 5 billion towards its commitment to climate finance in India, on the occasion of Conference of Parties (COP) 21 climate summit underway in Paris.
YES BANK, a leader in the climate finance space in the country aims to mobilize USD 5 billion from 2015 to 2020 for climate action through lending, investing and raising capital towards mitigation, adaptation and resilience. To achieve holistic impact and aid India’s target of meeting its Intended Nationally Determined Contributions (INDCs), the bank also committed to achieve the following by 2020:
Target funding of 5,000 MW of clean energy
Gradually increase percentage of Renewable Energy in its power portfolio
Contribute towards creating a carbon sink by planting 2 million trees
Touch 100 million lives through its safe and clean drinking water program
Offset Carbon Emissions of the bank’s operations
Rana Kapoor, Managing Director & CEO, while taking this commitment highlighted:“COP21 is demonstrating the potential to strengthen partnerships amongst governments and business, establishing new pathways to achieve business and financial innovations to address climate change. This was triggered by business fulfilling their commitments made in September 2014 at the UN Climate Summit. YES BANK had committed to target funding 500 MW clean energy annually which it had overachieved. Proactive corporate intervention is critical to achieving the climate goals and financial institutions have a larger role in driving climate action. YES BANK is fully committed to play the role of a catalyst and would work towards unlocking innovative financial mechanisms towards achieving India’s ambitious target of combating climate change in the near and long term.”
The Bank’s commitment is especially significant as it is the youngest Indian private sector bank in operation and holds the only greenfield banking license awarded by the Reserve Bank of India (RBI), in the last 17 years. Through these commitments YES BANK pledges to strengthen overall environment sustainability.
Towards funding India’s INDCs it is estimated that USD 2.5 trillion is needed by 2030. The need for climate finance is steadily increasing in India, which is demonstrated by India’s target to achieve 175 GW Renewable Energy by 2022. Currently, this market is experiencing an expansive growth with an additional capacity of over 4,000 MW of clean energy being added every year. YES BANK had exposure 1065 MW of Renewable Energy projects including solar, wind and biomass as of March 2015, and holds a leadership position in this space.
Recently, YES Bank also signed a memorandum of understanding (MoU) with The London Stock Exchange Group (LSEG) to collaborate on bond and equity issuance, with focus on developing green infrastructure during the Prime Minister’s visit to the United Kingdom.
The two week COP21 Climate Summit, attended by over 150 Heads of States and Governments and more than 40,000 delegates will aim to mobilize binding commitments based on voluntary action plans submitted by more than 180 nations since March. The goal is to limit the rise in global temperatures to less than 2 degree Celsius through a common agreement.