TPG to Pump $1B into Green Projects

6 Nov 2024 , 12:10 PM

According to news reports, TPG intends to launch a first-of-its-kind green financing platform in India and may contribute $1 billion as the initial equity pool in the non-banking finance company (NBFC).

The initiative aims to close the financial gap that developing nations like India face while attempting to switch from fossil fuels to more environmentally friendly energy sources. According to reports, TPG is in talks to join forces with at least two private lenders and financial institutions.

The platform will operate under TPG Rise Climate’s umbrella, and plans are anticipated to further solidify in the upcoming months in order to apply for banking regulator approval by the end of this year. TPG’s global impact investing platform includes TPG Rise Climate.

According to an ET report, TPG has been collaborating with consulting firm McKinsey to finalise the investment strategy and emphasis. Renewables are just one aspect of the wide range of green financing that the platform will examine. McKinsey estimates that the nation’s energy transformation to cleaner and greener sources will cost between $100 and 125 billion a year.

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