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The paper argues that high currency hedging costs in India negate the benefits of cheaper foreign loans, increasing renewable energy costs by 30% compared to the US. Using a stochastic model, the authors find that a government-sponsored FXHF could provide a 10-year currency hedge at an expected cost of 3.5 percentage points, which is 50% lower than market rates. Such a facility could reduce the delivered cost of renewable energy by up to 19% and government support costs by up to 54%, provided the government manages extreme currency risks. To achieve a credit rating equivalent to India's sovereign rating of BBB-, the paper estimates a cumulative capital buffer of approximately 30% of the underlying loan would be required.

The document presents a portfolio of BC3's urban research, focusing on the socio-economic and ecological implications of climate change. Key studies include an analysis of Bilbao's Sustainable Energy Action Plan, flood-risk assessments in Bilbao, Zurich, and Zaragoza, and the evaluation of heat-health warning systems and green roofs in Madrid.