India plans to put 50,000 electric buses on the road by 2027, thanks to a collaborative financing structure with the United States. Officials announced a $390 million fund at COP28 to guarantee loans for firms growing electric bus production.
With only 12,000 e-buses in operation, the payment security mechanism, supported with $150 million from the United States and philanthropic organizations, and $240 million from India, is critical for scaling up the financial system for electric mobility.
According to US climate envoy John Kerry, the project solves earlier problems by minimizing risks for firms seeking financing and boosting speed, scale, and effect in India’s decarbonization initiatives.