By Rusen Kumar
Raising green finance requires access to diverse sources of capital, public and private sector participation on and appropriate financing structures.
NEW DELHI / India CSR: India needs USD 20 billion worth of investments each year to achieve its climate targets and fund its green transition, said FICCI & Trilegal in a report. It needs a large budget allocation, international finance from bilateral and multilateral sources and green private investments.
At the same time, India needs to improve its readiness to access and deliver climate finance from all available sources. This was suggested in a white paper ‘ESG – Into the Mainstream’ which was jointly worked upon by FICCI & Trilegal. It was released at the FICCI ESG Summit 2022, Financing the Sustainability Agenda, held on a virtual platform on 9-10 March 2022.
It was released by Rajesh Verma, Secretary, Ministry of Corporate Affairs at a timely juncture as ESG (Environmental, Social and Governance) considerations are increasingly influencing the way in which businesses measure success.
The report comes as at a timely juncture as ESG Environmental, social and governance (ESG) considerations are increasingly. The expectations of key business stakeholders such as investors, regulators, customers, and employees are also bringing these parameters in sharp focus.
The regulators are actively incorporating ESG and sustainability factors into the legal framework in ways that will change how companies operate. India’s readiness to access and deliver climate finance and other related aspects such as uniform carbon tax policy and green taxonomy for enhancing investor confidence are explored in the report.
It delves deep into potential sources of finance and novel structures and the need to incentivize investors willing to provide ‘first loss capital’ to de-risk projects and catalyze further investments. The report details how corporates can contribute to the sustainability agenda, non-financial metrics and management of ESG risks.
The report also explores the themes of ESG Crisis Readiness and Regulation of ESG Ratings Providers in India through global comparisons and makes recommendations on the ESG framework that pre-empts ESG crises as well as handles one responsibly when it arises.
The report also spotlights reforms in power sector for encouraging ESG-led investment in India’s climate transition.
About the Author
Rusen Kumar is a well-known thought leader in Corporate Sustainability & Responsibility (CSR in India. The is the managing editor at India CSR. He can be reached at editor@indiacsr.in
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(India CSR)
