Adani to Boost Renewables with Green Bonds

Adani to Boost Renewables with Green Bonds

BY  
Seneca ESG  
- January 11, 2022

Adani Group , an Indian multinational conglomerate of energy and port, committed to leveraging green bonds to build the world’s largest renewable energy firm, as reported by Nikkei Asia on January 7. The company has already raised USD750m through green bonds in September 2021. Adani’s Chairman Gautam Adani revealed that the group will inject USD20bn into renewables development over the next decade with more capital from green bond issuances and raise its annual production capacity of solar panels from the current 1.5 gigawatts (GW) to 3.5 GW by the fiscal year ending in March 2023. The group aims for two-thirds of renewable power generation in its total electricity output by 2026, compared to the current proportion of 21%.

The USD20bn investment plan is part of Adani’s ambitious vision in green energy. The group aims to invest USD70bn on the entire green energy value chain over the next decade, covering electrolyzers used for producing hydrogen as well as other facilities for solar energy and wind power. Although the group’s market value had surged 127% YoY to USD74bn in 2021, it still needs the fast-growing green bond market to support its energy transition. In the same year, the global green bond issuance saw a 44% increase to USD430bn, while green bonds issued by Indian companies skyrocketed to USD5bn from USD875m in 2020. As the third-largest greenhouse gas (GHG) emitter worldwide, India plans to achieve a 50% power production from non-fossil fuels by 2030.

Sources:

https://asia.nikkei.com/Editor-s-Picks/Interview/Adani-to-lean-on-green-bond-market-for-renewables-expansion

https://economictimes.indiatimes.com/industry/renewables/india-to-achieve-50-clean-energy-share-500-gw-re-capacity-targets-before-2030-deadline-singh/articleshow/87604552.cms

https://www.moneycontrol.com/news/business/adani-group-crosses-100-billion-in-market-cap-in-fy22-7164621.html

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