1 month ago
India’s Net‑Zero Push Attracts Long‑Term Capital
India wants to stop adding more carbon to the air by 2070.
To do that, it needs a lot of money for clean energy, power lines, batteries, and electric cars.
Big investors like pension funds and sovereign wealth funds are now ready to give long‑term money for these projects.
Different investors look at projects at different stages: some want new projects, others want projects that already make money.
The government and banks are helping by putting their own money into projects that private investors are hesitant to touch.
Banks say they have plenty of money ready to lend, so the main challenge is getting the right investors to join in.
India’s 2070 net‑zero goal is driving investment in renewable energy, transmission, storage, and climate infrastructure.
Long‑duration capital from sovereign wealth funds and pension funds is entering sustainable infrastructure, per NIIF IFL CEO Ajay Chaudhary.
Investors are segmenting by risk, with construction‑stage assets attracting one group and operational assets attracting another.
Development finance institutions like British International Investment are catalyzing private capital by investing where commercial capital is hesitant.
State Bank of India reports ample domestic liquidity, with ₹4 lakh crore surplus, indicating robust financing availability.
- Who
- Investors, NIIF Infrastructure Finance Ltd, British International Investment, State Bank of India
- What
- Raising capital for India’s net‑zero transition
- Where
- Mumbai, India
- When
- During the Mint India Investment Summit
- Why
- To fund low‑carbon infrastructure needed to meet the 2070 net‑zero target
Key facts
- Target year
- 2070
- Capital source
- Sovereign wealth funds, pension funds
- Investment focus
- Renewable energy, transmission, storage, electric mobility
- Domestic debt share
- 96%
- Surplus liquidity
- ₹4 lakh crore
Quotes
Ashok Kumar Sharma
Deputy managing director, chief credit officer and chief sustainability officer at State Bank of India
“One of the things we focus on is whether other investors with similar ESG standards and a willingness to finance these sectors can join us on that journey.”
livemint.com
“The real game changer will be the entry of long‑duration capital from sovereign wealth funds and pension funds into sustainable infrastructure.”
livemint.com
Sources
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