India, UK plan world bank for green energy

What is the News?

Ahead of the UN Climate Change Conference (COP-26),  India and the UK are planning to explore the possibility of setting up a World Bank for green energy.

What will be the purpose of the World Bank of Green Energy?

1. The World Bank for Green Energy could materialize the proposal for $100 billion in climate finance pledged by developed countries under the Paris Agreement. 

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About COP-26:

1. The 2021 United Nations Climate Change Conference is also known as COP26 is the 26th United Nations Climate Change Conference. 
2. Presidency: It is scheduled to be held in the city of Glasgow, Scotland in 2021 under the presidency of the United Kingdom.

Ratchet Mechanism:

1. Under the Paris Agreement, countries have submitted Intended nationally determined contributions to reduce greenhouse gas emissions compared to a “business as usual” scenario. 
2. The framework also expects each country to submit enhanced nationally determined contributions every five years to ratchet up the ambition to mitigate climate change. This process is informally known as the ratchet mechanism.
3. COP 26 is expected to be the first time that Parties are expected to commit to enhanced ambition since COP21. 

Green Hydrogen:

1. The Indian Government has invited the UK to participate in the upcoming bids for green hydrogen and lithium-ion.
2. Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolyzer powered by electricity from renewable energy sources such as wind and solar. 
3. Green Hydrogen can be a game-changer for India, as India imports 85% of its oil and 53% of gas demand.

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