5 days ago

Taskforce Proposes Green Finance Institution for India

A business taskforce says India should create a new institution to help pay for climate-friendly projects.

This institution would not work like a normal government bank.

Instead, it would help reduce investment risks and encourage private investors to provide money.

It would focus especially on medium-sized companies and smaller businesses that often struggle to get affordable loans.

The proposed institution could support renewable energy, batteries, clean transport, green hydrogen and cleaner factories.

The taskforce says it might help attract up to US$1 trillion over five to 10 years.

It also wants clearer rules for India’s carbon market so companies can plan ahead.

Finally, it recommends a common system for identifying climate-friendly activities and stronger company reporting on emissions and climate plans.

Key facts

Proposed institution: A dedicated Green Finance Institution operating as an impact-oriented blended-finance platform.
Indicative ambition: Catalyse up to US$1 trillion in investment over five to 10 years.
Target beneficiaries: Mid-sized companies and MSMEs facing high capital costs and limited access to finance.
Potential sectors: Renewable energy, energy storage, clean transportation, industrial decarbonisation, green hydrogen, offshore wind and MSME supply-chain transition.
Carbon-market proposal: Retain the emissions-intensity baseline-and-credit system while progressively tightening sectoral targets.
Climate Finance Taxonomy: Finalise a common framework to identify climate-aligned activities for banks, investors, insurers and companies.
Corporate reporting: Strengthen BRSR through digital iXBRL reporting, phased assurance and disclosures on transition plans, emissions targets and decarbonisation capital expenditure.

thehindubusinessline.com · 5 days ago