The “Financing Climate Mitigation for a Viksit Bharat by 2047” webinar, organized by the Climate Sustainability Initiative (CSI), provided a platform for discussions on sustainable finance to achieve India’s climate goals. With a focus on infrastructure development, policy support, and innovative financing, the event aimed to set milestones for India’s journey to net-zero emissions by 2070 while striving for comprehensive economic growth by 2047.
Key Themes and Objectives
1. Setting Long-Term Goals: Highlighting the financial and infrastructural requirements for achieving India’s net-zero target.
2. Sustainable Finance Strategies: Exploring avenues to attract global and domestic investments into green technologies and renewable energy.
3. Policy Support and Innovation: Addressing fiscal reforms, export competitiveness, and climate risk mitigation measures.
Expert Panel Insights
1 Chintan Shah
Group President, ReNew
With 30+ years of experience in renewable energy, Chintan Shah detailed India’s progress and challenges in scaling clean energy initiatives.
- Successes: India’s achievements in renewable energy scalability and replicability, are supported by government incentives and robust infrastructure.
- Challenges: Infrastructure and financing hurdles like high equity costs and land availability for projects.
- Future Directions: Advocated for a shift to advanced energy models like hybrid and RTC systems and set a bold vision of 1 Terawatt renewable capacity by 2035.
- Financing Innovations: Proposed sustainability-linked bonds and credit enhancements for decarbonization. Emphasized the role of pension and insurance funds in long-term financing.
2. Labanya Jena
Head, Climate Policy Initiative’s Center for Sustainable Finance
An authority on climate finance, Labanya Jena presented a roadmap to meet India’s $10.1 trillion climate capital requirement.
- Financial Gaps: Highlighted over-reliance on commercial banks and NBFCs for short-term financing.
- Proposed Solutions: Called to leverage pension funds and insurance for long-term debt and enhance bond markets with longer tenures to manage refinancing risks.
- Role of Technology: Advocated for integrating climate risks into investment decisions and reducing transaction costs.
3. Priti Agarwal
Senior Director, Care Ratings Ltd.
- Market Dynamics: EV penetration is promising in 2- and 3-wheelers but remains low in passenger vehicles due to cost concerns.
- Policy Support: Highlighted schemes like FAME II and advocated for PLI initiatives to boost battery localization and reduce costs.
- Infrastructure Needs: Stressed on expanding charging networks to address range anxiety.
4. Suranjali Tandon
Associate Professor, National Institute of Public Finance and Policy
A specialist in sustainable finance and fiscal policies, Suranjali Tandon emphasized global trends and India’s position in the climate economy.
- Global Policy Alignment: Addressed challenges from mechanisms like the EU’s CBAM, urging India to align its trade and fiscal strategies.
- Export Competitiveness: Called for a move up the export value chain while preparing MSMEs for international tax and trade policies.
- Fiscal Recommendations: Advocated for integrating GST into electricity tariffs, incentivizing green bonds, and reforming tax policies to boost renewable energy adoption.
Key Takeaways and Recommendations
1.Infrastructure Development: Focus on robust transmission systems and renewable energy storage solutions.
2. Diversified Financing: Expansion of green bonds, sustainability-linked instruments, and credit enhancements to attract institutional investors.
3. Policy Reforms:
- Harmonization of tax policies to reduce inefficiencies.
- Integration of climate risks in financial ratings and investment decisions.
- Budgetary support for renewable energy and EV battery storage.
Global Collaboration: Prepare for export taxation and policies to maintain competitiveness in international markets.
4. Global Collaboration: Prepare for export taxation and policies to maintain competitiveness in international markets.
Conclusion
The webinar emphasized a comprehensive approach to financing climate mitigation and balancing economic growth with sustainability. The panelists outlined actionable steps for India to transition toward a greener, self-reliant economy while addressing infrastructural and policy challenges. The insights underscore the critical role of collaboration between government, financial institutions, and private players in building a sustainable future for Viksit Bharat by 2047.