Chennai, 17 June 2023: The Department of Economic Affairs, Ministry of Finance, in collaboration with Climate Policy Initiative and IIT Madras’ School of Sustainability jointly organised a Roundtable Discussion titled ‘Mobilizing Climate Finance in India for Mitigation and Adaptation’. The domestic side event precedes the 3rd Sustainable Finance Working Group (SFWG) meeting under G20’s presidency scheduled to be held between June 19-21, 2023 in Mahabalipuram, Tamil Nadu. Prof. V. Kamakoti, Director, IIT Madras in his welcome address underscored that collective efforts, in line with India’s G20 motto of Vasudhaiva Kutumbakam, are fundamental for the world to deal with climate change. Ms. Chandni Raina, Adviser, Department of Economic Affairs, Ministry of Finance gave the keynote address. The round table was moderated by Dr. Dhruba Purkayastha, Director India, Climate Policy Initiative.
The roundtable discussion witnessed the participation of prominent stakeholders, including senior representatives from the Ministry of Finance, Reserve Bank of India, leading public and private sector banks, investors, industry bodies, and international development financial institutions. During the event, participants delved into the landscape of climate finance, highlighting the gap between the current and desired investment levels. The roundtable recognized the role of public finance in increasing climate investments, while emphasizing the need for scaling up private finance through policy, regulatory and market making measures, creating a better enabling environment for innovation and deployment of low-carbon technologies. The roundtable discussion proposed several avenues to bridge the climate finance gap, including policy and regulatory measures such as taxonomy and disclosures, innovative financial mechanisms included blended finance, and the mobilization of funds from institutional investors such as insurance and pension funds.
During the event, Ms Chandni Raina, Adviser, Climate Change Finance Unit, Department of Economic Affairs, Ministry of Finance said that “Mobilization of timely and adequate financial resources in a cost-effective manner and access to technology is critical for meeting the requirements for climate action.” She further stated, “Addressing Climate Action among various development imperatives remains a challenge and while the per capita carbon emission is much lower than the world average, several measures have been taken by the Government of India to reduce emissions in the past decade and more.”
Dr. Dhruba Purkayastha, Director India, Climate Policy Initiative, said “India is on track to meet its NDC goals and India’s revised NDC commitments have significantly increased targets on emissions intensity reduction and renewable energy investments. Corresponding investments required in mitigation and adaptation would also have to be increased. While estimates vary between $ 150 to $ 200 billion per annum for NDC and Net Zero goals, it is imperative that domestic financial intermediation for climate investments through banks and capital markets is scaled up disproportionately from its present levels. This would need directed policy action, supportive regulation to increase climate finance and prudent trade-offs in progressively managing increased systemic risks which could accrue from transition to low carbon economy, in addition to active commitment to low carbon transition from the banking, financial services and insurance industry.”
Prof Kamakoti, IIT Madras also remarked ” With a significant portion of our land exposed to floods, droughts, earthquakes, and coastal hazards, it is imperative that we invest in robust adaptation and resilience measures. The roundtable discussion shed light on the estimated investment of $1 trillion needed between 2015 and 2030 to ensure effective adaptation. Our collective efforts must be directed towards building a climate-resilient India.”
The roundtable discussion proposed several avenues to bridge the climate finance gap, including policy and regulatory measures to build innovative financial mechanisms including blended finance, and the mobilization of funds from institutional investors such as insurance and pension funds. By developing partnerships and collaborations among stakeholders, the event aimed to foster sustainable investments and identify actionable recommendations.
About Climate Policy Initiative India Private Limited
Climate Policy Initiative is an analysis and advisory organization with deep expertise in finance and policy. Our mission is to support governments, businesses, and financial institutions drive economic growth while addressing climate change. CPI has six offices around the world in Brazil, India, Indonesia, the United Kingdom, and the United States. CPI India Private Limited has been working to support India in fulfilling its global climate change commitments though: clean energy market catalysing initiatives, such as the US India Clean Energy Finance (USICEF), India Clean Energy Finance 2.0 (ICEF 2.0), Productive Use of Renewable Energy (PURE), India Distributed Solar Finance initiative (IDSF), the Global Innovation Lab for Climate Finance (India Chapter); capacity building initiatives, such as the Center for Sustainable Finance (CSF)]; and research and analysis into transitioning into a sustainable energy future, such as Futureproofing Strategy for PSUs, and Just Energy Transition.
Learn more at: www.climatepolicyinitiative.org