Climate and Sustainability Initiative (CSI), in collaboration with Artha Global and with support from Shakti Foundation, convened a closed-door roundtable during Mumbai Climate Week, bringing together leaders from finance, industry, policy, and the climate ecosystem to deliberate on the structural financing challenges underpinning India’s clean energy transition. Discussions centred on the country’s estimated USD 2.7 trillion financing requirement between 2026 and 2050, with participants examining how India’s current financing architecture remains overly dependent on banks and NBFCs, making it ill-equipped to support the scale and tenor of investment required for a net-zero transition.
The discussion underscored the need for a structural shift towards mobilising institutional capital through pension funds, insurance companies, development finance institutions, and capital markets. Participants explored regulatory and market barriers that continue to constrain long-term investments, including provisioning norms, conservative investment mandates, credit rating practices, and the limited availability of risk-mitigation mechanisms. The dialogue also highlighted challenges in scaling equity investments for climate technology and manufacturing companies, where uncertain exit pathways continue to dampen investor confidence.
The roundtable served as a platform for solution-oriented exchanges on strengthening India’s green finance ecosystem. Participants discussed practical pathways to unlock domestic capital, improve risk-sharing mechanisms, deepen project finance markets, and create a more enabling environment for institutional investors. The insights generated through the discussion will inform CSI’s ongoing work on climate finance and policy, contributing to evidence-based recommendations for accelerating investment into India’s low-carbon transition
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