Soon: NITI policy for battery storage

London, with its deep capital markets, its expertise in green finance and its own experience of low carbon transition, is a partner of choice for investments in India’s low-carbon economy.

“Indeed, that’s why we have set up the UK-India Green Finance Working Group. We recognise just how important it is to invest in India and to invest in the green transition,” said Catherine McGuinness, Policy Chair, City of London Corporation, highlighting the choice of London.

India is one of the few countries with commitment compatible with the ambitions of the Paris Agreement, noted McGuinness, at ‘India-UK Dialogue: Supercharging Sustainable Finance in India’, held on 28 Jan 2020

For meeting India’s clean growth needs and the ambitions of the Paris Agreement will not just require energy transition, but it will require a repetition of that feat across the economy whether that’s in transport, agriculture, or in waste, she said.

“And, that will require even more capital and investment,” added McGuinness.

India needs to ensure that investments made in the economy are sustainable in terms of low carbon emission, elaborated Rajasree Ray, Economic Adviser in the Finance Ministry, agreeing with McGuinness.

Ray said sustainable finance is no longer in the margins of discourse, but serious effort is being made to mainstream it.

“The challenge is not only to mobilise resources and invest in various segments of the economy including infrastructure but to ensure that these investments are going to be sustainable particularly consistent with low carbon and sustainable development pathway,” she said.

India joined the International Platform on Sustainable Finance in October 2019 acknowledging the fact that the global nature of financial markets has the potential to help finance the transition to a green, low carbon and climate resilient economy by linking financing needs to global sources of funding, Ray pointed out.

The dialogue was organised by FICCI in collaboration with UK’s Foreign & Commonwealth Office, the City of London and Climate Bonds Initiative.

A massive level of finance is needed for the growth of the renewable energy sector, according to Rajnath Ram, Adviser, NITI Aayog.

He also said that NITI Aayog is soon coming with policy for storage of batteries.

The first report of the India-UK Working Group on Sustainable Finance titled ‘Untapped Potential: Supercharging Green Finance in India’ was released during the event.

Climate action is a priority for both India and the UK, and it is a natural area for partnership between the two nations, underlined Natalie Toms, Economic Counsellor, British High Commission.

The report is a high-quality work and provides a platform to start working with its set of recommendations, noted Hitendra Dave, India Co-Chair, India-UK Working Group on Sustainable Finance.

The India Working Group is a set of highly qualified key constituents of the market both from the investors and lenders side as well as the issuers and borrower’s side, said Dave, who is also MD & Head of Global Banking and Markets, HSBC India.

“And together with the UK side (we) will look at delivering practical and implementable solutions to mobilise sustainable finance,” he assured.

Green financing is gaining popularity in India and that there is a need to improve the visibility of bankable projects, observed Richard Abel, UK Co-Chair, India-UK Working Group on Sustainable Finance and MD, UK Climate Investments, Macquarie. fiinews.com