This final blog in our series on “Transforming India’s Climate Finance Landscape” spotlights a bold opportunity: establishing a Green and Transition Finance (GTF) Window within key state-owned FIs. Building on their legacy in the power sector, this initiative could unlock targeted capital flows for emissions reduction and clean tech adoption in hard-to-abate sectors. As India advances toward its net-zero targets, the GTF Window offers a critical pathway to scale green and transition finance, derisk projects, and attract global investment.

India’s shift to sustainable energy hinges on institutions like PFC and REC. With only a third of the INR 162.5 trillion needed for climate goals by 2030 currently flowing, these entities can close the gap by financing green tech, infrastructure, and transition projects. By diversifying portfolios, issuing green bonds, and aligning with global funds, they can accelerate the low-carbon transition while managing risks like stranded assets and shifting energy needs.

India’s steel sector is the largest industrial emitter, contributing 10-12% of the country’s total carbon emissions. Learn how transition finance can enable a gradual shift toward low-carbon steel production, bridging the gap until commercially viable green technologies emerge.

As we transition from fossil fuels to cleaner energy, India faces economic challenges, particularly in mineral-rich states. Jharkhand, for instance, could lose billions annually, affecting state revenues, livelihoods, and communities.