City of London Corporation-FICCI report on Indian green finance sector
By Priyanka Samania
Urging policymakers to mitigate investment barriers to supercharge India’s green finance sector, the City of London Corporation, along with the Federation of Indian Chambers of Commerce and Industry (FICCI), has launched a report along with inputs from the UK-India Green Finance Working Group. The report ‘Untapped Potential: Supercharging Green Finance in India’ looks at the opportunities and challenges for sustainable finance in India. It offers recommendations on how to drive the green finance sector forward.
The recommendations include a reduction in structural barriers to investment, including the development of the rupee-denominated masala bond market; innovative financing mechanisms tailored to the Indian landscape; increased transparency; greater visibility of opportunities and funding gaps; greater government cooperation for building domestic support in the country; greater sharing of technical expertise among regulators; and targeted reforms and incentives, such as changes to the External Commercial Borrowing (ECB) guidelines by the Reserve Bank of India (RBI) for issuers with ‘green’ track records.
Dilip Chenoy, FICCI Secretary-General, said, “India and UK have a long-standing relationship and both countries can mutually collaborate and proactively support initiatives on green growth and investment internationally to unlock the domestic and international flow of green capital.”  According to Mr.Hitendra Dave, India Chair, UK-India Green Finance Working Group, and Managing Director and Head of Global Banking and Markets, HSBC India, the report is of “a very high quality” and has been launched at “the most opportune time”. He said that the report “should act as an anchor and reference point as we move to the next stage of implementation, policy advocacy, and defining and executing more granular steps to scale up sustainable finance for India”.
Catherine McGuinness, Policy Chair, City of London Corporation, said, “The UK is a leading global hub for green finance, home to many world-class institutions from all stages of the investment cycle, from project conception to delivery.India is a market with an incredible diversity of opportunity, and collaboration between our two countries gives us a chance to make a real difference to the climate change efforts.”
