Capital markets can play a key role in mobilising long-term finance for clean energy, sustainable infrastructure and climate-resilient growth
MUMBAI (India CSR): India will require approximately USD 10.9 trillion (Rs 1,040 lakh crore) in climate finance to achieve its Net Zero 2070 target, according to discussions held at the World Environment Day Summit 2026 hosted by the National Stock Exchange of India Limited (NSE) in association with the FICCI Centre for Sustainability Leadership.
The summit was organised on the theme “Capital Markets as the Gateway of Climate Finance in India.” It brought together regulators, policymakers, institutional investors, corporates, sustainability experts and market participants to deliberate on scaling climate finance and accelerating India’s transition towards a low-carbon economy.
The discussions highlighted that India’s transition to a sustainable and climate-resilient economy will require unprecedented mobilisation of private capital. Capital markets are expected to become a major gateway for directing long-term investments into clean energy, sustainable infrastructure, industrial decarbonisation, climate adaptation and emerging green technologies.
Capital Markets Seen as Key to Climate Finance
Speaking at the summit, Ashishkumar Chauhan, MD and CEO, National Stock Exchange of India Limited, said India’s climate transition will need capital at an unprecedented scale.
“India’s climate transition requires capital at an unprecedented scale. Capital markets can play a pivotal role in channeling long-term investments towards sustainable infrastructure, clean energy and climate-resilient growth,” Chauhan said.
His remarks underline the growing role of stock exchanges and capital market instruments in supporting climate-aligned investments. As India moves towards its Net Zero 2070 goal, sustainable finance is expected to become an important pillar of economic growth and climate action.
Strong Disclosures Needed for Investor Confidence
Deepak A. Trivedi, CFO and CGM, SEBI, said sustainable finance can scale only when investors have confidence in disclosures, governance and market integrity.
“Strong disclosures, robust governance and investor confidence are essential for scaling sustainable finance and supporting India’s long-term development objectives,” Trivedi said.
The summit discussions highlighted the importance of frameworks such as Business Responsibility and Sustainability Reporting (BRSR) and the emerging Climate Finance Taxonomy in strengthening transparency, disclosure standards and investor confidence.
Green Bonds and ESG Debt Gain Relevance
The discussions focused on the evolution of India’s sustainable finance ecosystem. Key instruments discussed included Green Equity, ESG Debt Securities, Sustainability-Linked Instruments, Municipal Green Bonds and Transition Finance.
These instruments are expected to support India’s climate goals by helping mobilise private capital for long-term sustainable projects. They can also help companies, municipalities and institutions raise funds for climate-friendly and sustainability-linked initiatives.
Experts noted that climate finance is not limited to renewable energy alone. It also includes financing for sustainable infrastructure, energy efficiency, water security, resilient cities, climate adaptation, clean transport, industrial decarbonisation and green technologies.
Climate Ambition Seen as Investment Opportunity
Dr. Mukund Govind Rajan, Chairman, ECube Investment Advisors and Chair, BRICS Task Force on ESG and Green Finance, said India’s climate ambitions present a significant opportunity for innovation and investment.
“India’s climate ambitions present a significant opportunity for innovation and investment. Developing credible and scalable sustainable finance frameworks will be critical for mobilising capital,” Dr. Rajan said.
His comments pointed to the need for credible financing frameworks that can attract institutional investors and global capital while strengthening trust in sustainable finance products.
Climate Transition Can Drive Jobs and Growth
Ajay Saxena from the Maharashtra Institution for Transformation (MITRA), Government of Maharashtra, said climate transition can become a powerful driver of economic growth, innovation and employment.
“Climate transition can be a powerful driver of economic growth, innovation and job creation. Partnerships across public and private stakeholders will be essential to unlock this opportunity,” Saxena said.
The statement reflects the wider view that climate action is not only an environmental necessity but also an economic opportunity for India. A well-financed green transition can support new industries, create jobs and strengthen India’s long-term competitiveness.
Sustainability Now Integral to Business Strategy
Prabodha Acharya, Co-Chair, FICCI Environment and Climate Change Committee and Group Chief Sustainability Officer, JSW Group, said sustainability is increasingly becoming central to business planning.
“Sustainability is increasingly becoming integral to business strategy. Collaboration across industry, regulators and financial markets will be key to accelerating climate action,” Acharya said.
His remarks indicate a broader shift in corporate India, where ESG performance, climate risk, sustainability-linked financing and responsible growth are becoming important factors for investors and business leaders.
India Enters Next Phase of Sustainable Finance
The summit concluded with a shared view that India is entering the next phase of sustainable finance. Capital markets are expected to play a larger role in bridging the country’s climate finance gap and supporting its green transition.
Participants emphasised that continued collaboration between regulators, exchanges, investors, corporates and policymakers will be critical to building a resilient and future-ready economy.
As India pursues its Net Zero 2070 ambition, mobilisation of climate finance at scale will be one of the most important requirements. The discussions at the NSE summit indicated that capital markets can become a powerful platform for channeling long-term private capital into sustainable and climate-resilient growth.
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