May 17 (UPI) -- More than $40 million in bonds are available to help India, one of the world's leading economies, address challenges from climate change, a bank said.
The Asian Development Bank said it raised $47 million in bonds due in February 2021 that will help drive capital toward climate change mitigation projects in India.
"In today's markets, green bonds are an increasingly important source of financing for climate change projects and given ADB's strong engagement in the capital markets of developing Asia, it is a natural next step for ADB to issue green bonds in local currency," ADB Treasurer Pierre Van Peteghem said in a statement.
The ADB said the funds will help drive the development of wind and solar projects across six states in India.
A February report from the International Monetary Fund said India, one of the world's fastest-growing economies, may have issues with attracting capital because of the amount of bad loans on its books and the general health of the nation's banking system.
India aims to triple its renewable power capacity by 2022 to 175 gigawatts by drawing on new solar and wind energy sources.
Coal is still a dominant energy form in India, and parts of the country still lack a reliable source of electricity. India is No. 4 in the world in terms of new solar power and No. 4 in the world based on cumulative wind power capacity.
Last month, French energy company ENGIE secured a contract to build a solar power project in southern Indian that's part of a national plan to reach 100 gigawatts of solar capacity.
The government in New Delhi is committed to honoring pledges made toward the global Paris climate agreement.