India is set to receive substantial financial backing from the World Bank, with a funding approval of USD 1.5 billion to expedite its energy transition. The support is primarily geared towards promoting green hydrogen and elevating renewable energy production in the country. This initiative forms part of the Second Low-Carbon Energy Programmatic Development Policy Operation, aiming to bolster India's energy capabilities while curbing carbon emissions. With a hefty investment requirement of up to $385 billion to achieve the target of 500 GW of renewable energy by 2030, the funding serves as a critical catalyst for India's sustainable growth. The program places a significant emphasis on reforms to stimulate green hydrogen production, including the advocacy of electrolyzers as essential technologies to meet production and consumption targets. Green hydrogen, derived from water electrolysis using renewable electricity, emerges as a pivotal solution for decarbonizing challenging-to-electrify industrial sectors. The World Bank's backing encompasses measures to enhance the necessary infrastructure for green hydrogen production and distribution, encompassing new electrolyzer installations and storage capacity development. By facilitating these advancements, India not only aims to slash its emissions but also strives to establish a robust domestic market for green hydrogen, fostering innovation and employment within the burgeoning sector. In addition to fostering green hydrogen, the reforms under the program intend to fortify renewable energies. This includes advocating battery storage, amending the Indian Grid Code for improved renewable energy integration, and initiating pilot projects to modernize the electricity grid. The reforms are poised to attract private investments by crafting a conducive regulatory environment and proffering economic incentives to renewable energy project developers. Furthermore, the program sets ambitious production targets for green hydrogen and electrolysers, expecting 450,000 tonnes and 1,500 MW respectively by 2025/2026. These efforts are projected to escalate renewable energy capacity and slash emissions by 50 million tonnes annually, with green hydrogen finding applications across industrial domains like steel, chemicals, and transport to drive their decarbonization. The undertaking also encompasses measures to facilitate the adoption of clean technologies and enhance energy efficiency. Complementing green hydrogen with renewable energies, the World Bank aims to aid India in achieving its climate objectives while fortifying energy security. Notably, the program steers towards establishing a national carbon credit market, furnishing a framework for a robust, incentive-driven carbon market. This market allows companies to offset emissions by procuring credits from emission-reducing projects, thereby fostering investments in sustainable technologies. The creation of an effective carbon market is pivotal in meeting emission reduction thresholds, as it instigates a carbon price that encourages the adoption of sustainable practices and clean technologies. The World Bank's financial commitment, facilitated through a USD 1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a USD 31.5 million credit from the International Development Association (IDA), signifies a momentous stride for India's energy transition strategy. These funds are poised to underpin the necessary reforms and innovations while steering India towards sustainable growth.